We at the Department of Energy (DOE) have committed to pursue national development through the two-fold agenda of attaining energy independence and implementing power market reforms, which we have affirmed in our Philippine Energy Plan 2005-2014 (2005 PEP).

One year since we declared our commitment to these two goals, it is imperative that we refer back to our energy road map toward national development and assess our department's performance. As such, the Philippine Energy Plan 2006 Update (2006 PEP) provides the needed comprehensive assessment of the energy sector's performance during the 2005 PEP's first year of implementation.

The DOE has instituted reforms and innovations to better deliver its mandate of ensuring sustainable, stable, secure, sufficient, accessible and reasonably-priced energy for Filipinos. However, in the span of one year we have found ourselves in many interesting situations, both local and international, which have required us to take a different approach in achieving our goals. This year's PEP Update has therefore been formulated with prudence to respond pro-actively to the emerging energy issues and challenges brought about by various developments in the global arena.

In terms of energy independence, the DOE has redirected its actions towards the aggressive development and promotion of the country's (1) renewable and indigenous energy sources, and (2) alternative fuels. The former includes the extensive promotion of solar, wind and biomass as fuel sources for new power generation capacities, while the latter refers to the relentless pursuit of coco- biodiesel, ethanol, autogas, jatropha and natural gas as fuel for the transport sector.

Side by side with the above efforts are the reforms we have mainstreamed in the power sector. These reforms are expected to promote competitiveness and efficiency in the industry, resulting in reasonable power costs and improved services to energy consumers. In this area, the government has been aggressively promoting private sector participation through the introduction of regulatory policy reforms that will help attain its overall goal of ensuring reliable, adequate and quality supply of electricity.

We have included in this year's PEP Update a supplement to the Power Development Plan (PDP) chapter outlining the recent developments in the electric power industry and the investment requirements of the sector, which cover: (i) energy consumption and demand projections, (2) power supply-demand profiles and (3) investment opportunities. While the country's present energy sector performance is far from the energy crisis that hit the country in the 90s, we know there is still much to be done, and achieving energy independence remains a welcome challenge for us.

The strategies and programs we have outlined for the planning period will hopefully bring into fruition our vision of true development for the Philippines -- economic growth that is justly accompanied by social development.

The greater challenge for us now is to sustain the progress we have painstakingly gained in the energy sector throughout the past years. As we reaffirm our commitment to work on sustainable energy development, we enjoin all Filipinos to take part in making our plan a productive reality.