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ENERGY SECTOR PERFORMANCE
Objectives
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Improved Power Sector Governance
Expanded Use of Cleaner Fuels
Remote Communities with Renewable Energy
With the second highest electricity costs in Asia, the Philippines falls far behind its main competitors for investment-Vietnam, Thailand and Malaysia-where rates are one third as high. Implementation of the Electric Power Industry Reform Act, one of the most comprehensive and ground-breaking reform efforts in Asia, promises to lower costs and avert looming power shortages, but requires consistent political will, good governance and technical expertise. Successful privatization of power generation and transmission is a crucial element of the ongoing reform process.
In response, USAID supports the efforts of the Department of Energy to promote an open, competitive market for generating and distributing electricity. Activities include strengthening of the new Energy Regulatory Commission to help level the playing field for consumers and investors alike. USAID also supports use of cleaner indigenous fuels such as natural gas and bio-diesel, and development of the country's extensive natural gas reserves as well as wind, solar, hydro and other renewables. Through a public-private alliance, USAID is providing renewable energy-powered electricity to thousands of households in conflict-affected areas.