Transitioning the energy sector to achieve the 2030 Agenda for Sustainable Development and the objectives of the Paris Agreement presents a complex and difficult task for policymakers. It needs to ensure sustained economic growth as well as to respond to increasing energy demand, reduce emissions and, more importantly, consider and capitalize on the interlinkages between Sustainable Development Goal 7 (SDG 7) and other SDGs. In this connection, ESCAP has developed the National Expert SDG Tool for Energy Planning (NEXSTEP). This tool enables policymakers to make informed policy decisions to support the achievement of the SDG 7 targets as well as Nationally Determined Contributions (NDCs) of the Paris Agreement. The initiative has been undertaken in response to the Ministerial Declaration of the Second Asian and Pacific Energy Forum (April 2018, Bangkok) and ESCAP Commission Resolution 74/9, which was endorsed by member States. NEXSTEP also garnered the support of the Committee on Energy in its Second Session, with recommendations to expand the number of countries being supported by this tool.
The City of Cauayan has been a participant of a collaborative project led by ESCAP and UNEP on SDG 7 localization. It aims to engage and support cities in defining, implementing and monitoring strategies for achieving global, national, and subnational sustainable development goals. This Sustainable Energy Transition (SET) roadmap has been developed to identify technological options and policy measures that will help the city navigates the transition of its energy sector in line with the 2030 Agenda for Sustainable Development.
The City of Cauayan has been a participant of a collaborative project led by ESCAP and UNEP on SDG 7 localization. It aims to engage and support cities in defining, implementing and monitoring strategies for achieving global, national, and subnational sustainable development goals. This Sustainable Energy Transition (SET) roadmap has been developed to identify technological options and policy measures that will help the city navigates the transition of its energy sector in line with the 2030 Agenda for Sustainable Development.
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Section 1
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A. Highlights of the Roadmap
Content
The City of Cauayan (Cauayan) is an agricultural city in the coastal province of Isabela, on the island of Luzon, the Philippines. A city with a population of just over 150,000, Cauayan is well-known for being the first smart city in the Philippines in 2015, offering its citizens a wide variety of digital services (City of Cauayan, 2021) . It has also been selected to host the proposed Isabela Special Economic Zone and the Regional Agro-Industrial Growth Center. The development of the city is guided by the Sustainable Development Goals (SDGs). Various initiatives and programs have been launched in advancing the city’s progress across all SDGs (City of Cauayan, 2017) , including SDG 7. Notwithstanding, more can be done to accelerate Cauayan’s sustainable development towards meeting the SDG 7 targets by 2030.
This SET roadmap has two main objectives. Firstly, it aims to establish scenario baseline for the year 2019-2030, considering the current policy settings. Secondly, it identifies the measures and technological options that could raise Cauayan’s efforts to align with the SDG 7 targets, as well as achieving deep decarbonisation of its energy system. The four scenarios that are presented in detail in this roadmap are:
This SET roadmap has two main objectives. Firstly, it aims to establish scenario baseline for the year 2019-2030, considering the current policy settings. Secondly, it identifies the measures and technological options that could raise Cauayan’s efforts to align with the SDG 7 targets, as well as achieving deep decarbonisation of its energy system. The four scenarios that are presented in detail in this roadmap are:
- The current policy scenario (CPS), which has been developed based on existing policies and plans and used to identify the gaps in existing initiatives in aligning with the SDG 7 targets and the city’s ambitions.
- The sustainable energy transition (SET) scenario presents technological options and policy measures that will help the city to align its development with the 2030 Agenda for Sustainable Development, particularly the SDG 7 goal.
- The Decarbonisation of Power Sector scenario (DPS) explores the impact of a decarbonised electricity supply on the city’s GHG emissions and presents multiple pathways that the city can undertake in decarbonising its electricity supply.
- The Towards Net Zero (TNZ) scenario, the most ambitious scenario, looks at a pathway of moving towards a net zero society, through decarbonising the electricity supply and the adoption of electricity-based technologies.
Section 2
Title
B. Aligning City of Cauayan’s energy transition pathway with the SDG 7 targets
Content
Access to Modern Energy
As of 2019, 9.6 per cent of Cauayan’s population lacked access to electricity, while 23.3 per cent lacked access to clean cooking fuels and technologies. More attention is required to set up initiatives and channel funding in closing the access gap. NEXSTEP proposes that decentralised renewable electricity systems may be the best way forward in electrifying the remaining households.
More attention is required to provide universal clean cooking access to the population of Cauayan. Nearing a quarter of the population relied on unclean cooking fuel and technologies for household cooking, specifically traditional biomass stoves (18.7 per cent) and kerosene stoves (4.7 per cent). The phase out of unclean cooking practices is a means to improve health through reducing household indoor air pollution, as well as ensuring more gender empowered socio-economic development. Electric cooking stoves stand out as the most appropriate long-term solution, due to their cost-effectiveness (relative to the more commonly used LPG stoves), zero air pollution, and require minimal maintenance. In addition to that, coupling this technology with a decarbonised electricity supply, results in a zero-carbon solution.
Renewable Energy
The share of renewable energy (RE) in the total final energy consumption (TFEC) was 5.0 per cent in 2019. Under the CPS, the share of RE will increase to 10.7 per cent by 2030. The increase in the RE share under the current policies is driven by the high growth of renewable energy share in grid electricity, which is projected to increase from 14.0 per cent in 2019 to 34.1 per cent in 2030, and a slight increase in biofuel usage in the transport sector. In the SET scenario, RE share in TFEC is increased to 14.9 per cent. This additional increase of 4.2 per cent from the CPS is a result of both increased use of renewable energy due to higher share of electricity in energy consumption and further reduction of energy demand due to energy efficiency measures.
The RE share in TFEC for the DPS and TNZ scenario is expected to be high, as both the scenarios envision a decarbonised electricity supply. The latter also aims to position the energy system towards net-zero carbon. In the DPS scenario, the RE share in TFEC is further increased to 37.4 per cent as the RE share of electricity supply reaches 100 per cent. As later described in the roadmap, there are several pathways for achieving a decarbonised electricity supply, with the most promising and cost effective one being through renewable energy auctions. On the other hand, the RE share in TFEC increases to 56.5 per cent in the TNZ scenario, as more electricity-based technologies being adopted in the transport and residential sectors, reducing overall energy demand and increasing renewable energy usage with a 100 per cent electricity supply.
Energy Efficiency
Cauayan’s energy intensity is estimated at 5.85 MJ/US$PPP,2011 in 2019. It is expected to reduce to 5.64 MJ/US$PPP,2011 by 2030 in the CPS, as GDP growth outpaces the growth in energy demand. This corresponds to an annual improvement rate of 0.3 per cent.
The SET scenario proposes several energy efficiency interventions across the demand sectors, which further decreases the energy intensity to 4.18 MJ/US$PPP,2011 by 2030. This corresponds to a 3.0 per cent reduction per annum, aligning with the suggested global annual improvement rate of 3 per cent(UNSD, 2021) . The transport sector made up around 69.4 per cent of the total energy demand 2019, energy efficiency measures in the sector may provide substantial savings. NEXSTEP proposes an increase of electric vehicle share in the transport fleet to between 25 to 50 per cent, by 2030. The projected result – a 42 ktoe reduction in energy demand from the CPS due the high efficiency of electric vehicles. Other measures include mandating the compliance of national green building code to all new commercial buildings, regardless of floorspace area, as well as phasing out of inefficient lighting appliance in the residential sector. The phasing out of inefficient, polluting cooking practices allows an estimated energy reduction of 7.1 ktoe, clearly demonstrating the positive interaction between clean cooking access and energy efficiency. The proposed measures are further detailed in Chapter 4.
The energy demand reduction can be significant, should Cauayan follow a net zero carbon pathway, as suggested in the TNZ scenario. The energy intensity is projected to reduce to 3.38 MJ/US$PPP,2011, corresponding to a 4.9 per cent energy efficiency improvement per annum.
GHG emissions
The GHG emissions in 2019 are estimated at 443.6 ktCO2-e, which considers the direct fuel combustion and emissions attributable to the purchased (grid) electricity. ES 1 shows the GHG emission trajectories for the different scenarios. The GHG emissions from the CPS are projected to reach 730 ktCO2-e, while these are further decreased to 642 ktCO2-e in the SET scenario. Drastic decreases can be observed in the DPS and TNZ scenarios. Decarbonizing the electricity supply further reduces the GHG emissions to 279 ktCO2-e in the DPS scenario. The most ambitious reduction of 157 ktCO2-e can be achieved with increased adoption of electricity-based technologies in the transport and residential sectors. This entails having 100 per cent electric vehicle sales from 2023 onwards, and phasing out of (almost) all LPG stoves for residential cooking. In the agricultural sector, diesel-power water pumps are replaced with solar irrigation systems. The remaining emissions are from conventional vehicles yet to be phased out within the short nine-year period, a small amount of LPG stove usage in households connected to decentralised RE systems, as well as the use of large scale diesel-powered agricultural machinery (i.e. harvester, rotovators and tractors) where electric-powered versions have not yet reached commercialisation stage. 
As of 2019, 9.6 per cent of Cauayan’s population lacked access to electricity, while 23.3 per cent lacked access to clean cooking fuels and technologies. More attention is required to set up initiatives and channel funding in closing the access gap. NEXSTEP proposes that decentralised renewable electricity systems may be the best way forward in electrifying the remaining households.
More attention is required to provide universal clean cooking access to the population of Cauayan. Nearing a quarter of the population relied on unclean cooking fuel and technologies for household cooking, specifically traditional biomass stoves (18.7 per cent) and kerosene stoves (4.7 per cent). The phase out of unclean cooking practices is a means to improve health through reducing household indoor air pollution, as well as ensuring more gender empowered socio-economic development. Electric cooking stoves stand out as the most appropriate long-term solution, due to their cost-effectiveness (relative to the more commonly used LPG stoves), zero air pollution, and require minimal maintenance. In addition to that, coupling this technology with a decarbonised electricity supply, results in a zero-carbon solution.
Renewable Energy
The share of renewable energy (RE) in the total final energy consumption (TFEC) was 5.0 per cent in 2019. Under the CPS, the share of RE will increase to 10.7 per cent by 2030. The increase in the RE share under the current policies is driven by the high growth of renewable energy share in grid electricity, which is projected to increase from 14.0 per cent in 2019 to 34.1 per cent in 2030, and a slight increase in biofuel usage in the transport sector. In the SET scenario, RE share in TFEC is increased to 14.9 per cent. This additional increase of 4.2 per cent from the CPS is a result of both increased use of renewable energy due to higher share of electricity in energy consumption and further reduction of energy demand due to energy efficiency measures.
The RE share in TFEC for the DPS and TNZ scenario is expected to be high, as both the scenarios envision a decarbonised electricity supply. The latter also aims to position the energy system towards net-zero carbon. In the DPS scenario, the RE share in TFEC is further increased to 37.4 per cent as the RE share of electricity supply reaches 100 per cent. As later described in the roadmap, there are several pathways for achieving a decarbonised electricity supply, with the most promising and cost effective one being through renewable energy auctions. On the other hand, the RE share in TFEC increases to 56.5 per cent in the TNZ scenario, as more electricity-based technologies being adopted in the transport and residential sectors, reducing overall energy demand and increasing renewable energy usage with a 100 per cent electricity supply.
Energy Efficiency
Cauayan’s energy intensity is estimated at 5.85 MJ/US$PPP,2011 in 2019. It is expected to reduce to 5.64 MJ/US$PPP,2011 by 2030 in the CPS, as GDP growth outpaces the growth in energy demand. This corresponds to an annual improvement rate of 0.3 per cent.
The SET scenario proposes several energy efficiency interventions across the demand sectors, which further decreases the energy intensity to 4.18 MJ/US$PPP,2011 by 2030. This corresponds to a 3.0 per cent reduction per annum, aligning with the suggested global annual improvement rate of 3 per cent
The energy demand reduction can be significant, should Cauayan follow a net zero carbon pathway, as suggested in the TNZ scenario. The energy intensity is projected to reduce to 3.38 MJ/US$PPP,2011, corresponding to a 4.9 per cent energy efficiency improvement per annum.
GHG emissions
The GHG emissions in 2019 are estimated at 443.6 ktCO2-e, which considers the direct fuel combustion and emissions attributable to the purchased (grid) electricity. ES 1 shows the GHG emission trajectories for the different scenarios. The GHG emissions from the CPS are projected to reach 730 ktCO2-e, while these are further decreased to 642 ktCO2-e in the SET scenario. Drastic decreases can be observed in the DPS and TNZ scenarios. Decarbonizing the electricity supply further reduces the GHG emissions to 279 ktCO2-e in the DPS scenario. The most ambitious reduction of 157 ktCO2-e can be achieved with increased adoption of electricity-based technologies in the transport and residential sectors. This entails having 100 per cent electric vehicle sales from 2023 onwards, and phasing out of (almost) all LPG stoves for residential cooking. In the agricultural sector, diesel-power water pumps are replaced with solar irrigation systems. The remaining emissions are from conventional vehicles yet to be phased out within the short nine-year period, a small amount of LPG stove usage in households connected to decentralised RE systems, as well as the use of large scale diesel-powered agricultural machinery (i.e. harvester, rotovators and tractors) where electric-powered versions have not yet reached commercialisation stage.
Figure ES 1 Comparison of emissions by scenarios 2018-2030
Section 3
Title
C. Important policy directions
Content
As described above, there are ample opportunities for Cauayan to transform its energy system in alignment with the SDGs, while at the same time, substantially reducing its GHG emissions. The key policy recommendations to help Cauayan in its sustainable energy transition, are:
- Access to electricity and clean cooking technologies should be the number one priority. Decentralised RE electrification systems should be considered for quick implementation. Induction type electric cooking stoves is the most appropriate long-term solution in achieving 100 per cent access to clean cooking, while LPG stoves can be considered for households with insufficient power supply to support the use of electric cooking stoves.
- Green building code and the use of RE systems can be made mandatory for all new commercial buildings in the city, regardless of the floorspace area. The existing national green building code is obligatory for buildings above a certain minimum floorspace area. Widening the requirements to all new commercial buildings, regardless of the floorspace area, from 2023 onwards shall allow an estimated savings of 1.2 ktoe. Compulsory use of RE systems (i.e. solar PV) can be similarly introduced.
- Transport electrification is key to energy demand reduction and GHG emission reduction. Setting a high bar for transport electrification shall result in substantial GHG emissions reduction, particularly when coupled with highly decarbonised electricity supply.
- Raising the RE share in electricity supply through urban RE electricity generation, PPA and RE auction. Among the options to increase the RE generation share, RE auctions provide the best financial case and financial savings due to low solar PV generation costs. The opportunity for utilizing the biomass resource potential of the city for energy generation can also be explored.
- Moving towards Net-Zero Carbon: A net-zero society requires concerted effort from both the city authorities and citizens. A total decarbonisation of the power supply is essential, while increased electrification in the demand sectors are required, including the phasing out of internal combustion engine vehicles, LPG stoves and diesel-powered water pumps.