Renewable Energy in the Philippines PDF

Renewable Energy in the Philippines 1 Renewable Energy Biomass / Biofuels Geothermal Solar Power Hydropower Ocean Wind Power Renewable Energy sustainable as it is obtained from sources that are inexhaustible It is clean energy and non-po...

Renewable Energy in the Philippines 1 Renewable Energy Biomass / Biofuels Geothermal Solar Power Hydropower Ocean Wind Power Renewable Energy sustainable as it is obtained from sources that are inexhaustible It is clean energy and non-polluting. Many forms do not emit any greenhouse gases or toxic waste in the process of producing electricity. It is a sustainable energy source which can be relied on for the long-term. Why Renewable Energy? RE is practically infinite if managed properly It mitigates climate change & foster sustainable development The Clean Development Mechanism provides carbon credits & the RE Law gives incentives for RE sources to make RE projects attractive and viable Why Renewable Energy in the Philippines? 1. ENERGY SECURITY  Supports the government’s goal of energy self-sufficiency and sustainability  Climate Change imperative  Addresses environmental concerns  Widens carbon trading opportunity for the country  Visionary: preparation for time when consumers will demand/prefer green energy. Why Renewable Energy in the Philippines? 2. ECONOMIC AND LOCAL DEVELOPMENT  Promotes favorable investment climate  Leads to avoided fuel costs or foreign exchange  Promotes rural and off-grid development  Savings in health and welfare costs/benefits amounting to billions of dollars due to less air pollution  Job Creation Renewable Energy Potential Geothermal > 4,000 MW Wind resource > 76,600 MW Hydropower > 10,000 MW Solar > 5 kWh/m2/day Ocean > 170,000 MW Biomass > 500 MW (bagasse & rice hulls only) Largest producer of coconut oil Ranks 10thin world sugarcane production Source: Philippine Department of Energy/REMB Department of Energy 7 Challenges and Barriers High upfront and technology costs Non-competitiveness Non-viable markets Inaccessible Financial Packages Social Acceptability To address these barriers, the Government promulgated landmark Laws to accelerate development of the Country’s renewable energy resources. 8 Enactment of Landmark Laws Republic Acts Nos. (RA) 9367 and 9513 9  R. A. No. 9367: The Biofuels Act of 2006 Provide fiscal incentives and mandate the use of biofuel-blended gasoline and diesel fuels BIODIESEL  2008 consumption of 91 million liters (CME)  1% biodiesel blend sold in all gasoline stations  2% biodiesel blend by Feb. 6, 2009 BIOETHANOL  Start of 5% by total volume mandate on Feb. 6, 2009  10% bioethanol blend to all gasoline on Feb. 6, 2012 10 R. A. No. 9513: The Renewable Energy Act of 2008 Accelerate the development of the country’s renewable energy resources by providing fiscal and non-fiscal incentives to private sector investors and equipment manufacturers / suppliers. 11 R. A. No. 9513: The Renewable Energy Act of 2008  Accelerate the exploration and development of renewable energy resources  achieve energy self-reliance  to reduce the country’s dependence on fossil fuels  minimize the country’s exposure to price fluctuations  adoption of clean energy to mitigate climate change  promote socio-economic development in rural areas  Increase the utilization of renewable energy by providing fiscal and non fiscal incentives; 12 R. A. No. 9513: The Renewable Energy Act of 2008 Renewable Energy Law (RA 9513) Fiscal Incentives Non-Fiscal Incentives Renewable Net- Green Energy FIT System Portfolio Std Metering Option 13 R. A. No. 9513: The Renewable Energy Act of 2008 Fiscal Incentives  Income Tax Holiday and Low Income Tax Rate  Reduced Government Share  Duty-free Importation of Equipment and VAT-zero Rating  Tax Credit on Domestic Capital Equipment  Special Realty Tax Rate on Equipment and Machinery  Cash Incentive for Missionary Electrification  Exemption from Universal Charge  Payment of Transmission Charges  Tax Exemption on Carbon Credits 14 R. A. No. 9513: The Renewable Energy Act of 2008 Non-Fiscal Incentives:  Feed-in-Tariff (FIT) Priority connection to the grid Priority purchase and transmission of and payment for by grid system operators Fixed tariff for 20 years To be applied for generation utilized in compliance with RPS DOE issued List of guidelines for the Selection Process of Renewable Energy Projects Under Feed-In Tariff System and the Award of Certificate for Feed-In Tariff Eligibility 15  R. A. No. 9513: The Renewable Energy Act of 2008 Feed-in-Tariff (FIT) Rates RE Technology Approved Rates Installation Target (MW) (PHP/kWh) Run-of-River Hydro 5.90 250 Biomass 6.63 250 Wind 8.53* (with initial target of 200) 400** Solar 8.69 * (with initial target of 50) 500** * Feed in Tariff (FIT) rates for solar was revised in April 2015 (resolution no. 6, series of 2015) from Php 9.68 to 8.69/kWh covering additional target of 450 MW and the second FIT rate for wind energy was issued by the ERC at Php 7.40/kWh covering additional target of 200MW under ERC Resolution No. 14, series of 2015. ** Amended targets for wind energy and solar power up to March 15, 2016. 16 Feed-In Tariff Monitoring Board (as of June 2016) WITH CERTIFICATE OF FOR NOMINATION / WITH CERTIFICATE OF CONFIRMATION OF CONVERSION ENDORSEMENT TO ERC RESOURCE COMMERCIALITY NO. OF CAPACITY NO. OF PROJECTS CAPACITY (MW) NO. OF PROJECTS CAPACITY (MW) PROJECTS (MW) HYDRO - 86 732.12 4 26.60 WIND 7 1,023.55 11 715.30 6 393.90 SOLAR 15 565.18 47 1,227.73 20 525.95 BIOMASS 18 147.40 12 97.05 TOTAL 22 1,588.73 162 2,822.543 42 1,043.50 17  R. A. No. 9513: The Renewable Energy Act of 2008 Non-Fiscal Incentives:  Net-Metering Rules and Interconnection Standards Connection / sale of customers’ RE generation to the grid The ERC approved the Net Metering Rules last May 27, 2013 Total Number of Net Metering Customers as of September 15, 2016 is 568 with a capacity of 3,306.89 kWp 18  R. A. No. 9513: The Renewable Energy Act of 2008 Non-Fiscal Incentives:  Renewable Portfolio Standards (RPS) for On-grid and Off-Grid Areas Mandated minimum percentage of RE generation For Department of Energy’s finalization  Green Energy Option Program End-users’ option to purchase electricity from RE facilities (open access) For Department of Energy’s finalization 19 RE in the Philippines 2010 and 2014 Total Installed Capacity Mix (MW) 2010 2014 Total Installed Capacity = 15,881 MW RE Capacity Share = 5,304.25 MW Total Installed Capacity = 17,944 MW % RE Share = 33.4 % RE Capacity Share = 5,900 MW % RE Share = 32.88 % 20 RE in the Philippines 2010 and 2014 Total Generation Mix (GWh) 2010 2014 Total Generation = 65,795 GWh RE Generation Share = 17,830.4 GWh Total Generation = 77,261 GWh % RE Share= 27.1% RE Generation Share = 19,809.7 GWh % RE Share= 25.64 % 21  RE in the Philippines Biomass 2015 POWER MIX Biomass Solar Solar Wind 1% 1% 1% 0.9% Wind 3% 2% I D N E Hydro S Hydro 19% Coal P 19% Coal T 32% 34% E A N L Geothermal Geothermal D L 10% 10% A E B D Oil-based Natural Gas L Natural Gas Oil-based 19.3% 17% 15% 16% E Total Installed Capacity = 18,765 MW Total Dependable Capacity = 16,432 MW RE Share = 34% RE Share = 32% 22 RE in the Philippines 23  Summary Renewable Energy Projects Registered under RE Law (as of June 2016) INSTALLED CAPACITY AWARDED PROJECTS POTENTIAL CAPACITY MW RESOURCES MW Grid-Use Own-Use Grid-Use Own-Use Grid-Use Own-Use Hydro Power 352 1 7,053.15 1.50 141.49 - Ocean Energy 7 - 26.00 - - - Geothermal 41 - 610.00 - 1,906.19 - Wind 56 1 1,180.80 - 426.90 0.006 Solar 129 16 3,820.24 4.286 893.24 3.218 Biomass 39 25 163.38 3.92 260.57 166.18 Sub-Total 624 43 12,853.57 9.706 3,628.39 169.40 TOTAL 667 12,863.28 3,797.79 24  National Renewable Energy Program  Increase RE-based capacity by 200% within the next 20 years (2011- 2030)  Increase non-power contribution of RE to the energy mix by 10 MMBFOE in the next ten years  Be the number one geothermal energy producer in the world (additional 1,495 MW)  Be the number one wind energy producer in Southeast Asia (up to 2,500 MW)  Double hydro capacity (additional 5,400 MW)  Expand contribution of;  biomass - 265 MW  solar - at least 280 MW  ocean energy – at least 10 MW 25  NREP ROADMAP (2010-2030) Target additional RE capacities 2012 - Full implementation of RA are reached by: 9513 2022 – Wind : 2,345 MW 2015 - Target additional biomass 2023 – Hydro : 5,398 MW capacity of 277 MW is reached 2025 – Ocean : 75 MW 2018 – Commissioning of the 1st 2030 – Solar : 284 MW* OTEC facility Geothermal : 1,495 MW 2020 – Solar grid parity is attained 2025 – Wind grid parity is attained 2010 IMPLEMENTATION OF NREP SECTORAL SUB-PROGRAMS 2030 20 15,236 MW 15,151 MW 15 12,683 MW 10 7,526 MW 5,369 MW 5 2010 2015 2020 2025 2030 Note: The National Renewable Energy Program (NREP) is currently under review of NREB to reflect developments on RE sector and the DOE’s issuances of new Source: Philippine Department of Energy/NREP Installation targets. 26 Challenges in collecting RE Statistics Timely submissions of monthly generation reports Determination of other data that must be collected 27