1st Clean Energy Finance and Investment Consultation Workshop: “Unlocking finance and investment for clean energy in the Philippines” 31 May – 1 June 2022, Makati Diamond Residences, Legazpi Village, Makati City

1. PIPPA’s Perspective on
Challenges and Opportunities in Scaling
RE Investments in On-Grid Areas
17 March 2021

2. I. PIPPA
II. PIPPA’s Perspective on RE Investments
• Grid Connectivity
• Permitting
• Financing
• Policies to support RE
Presentation Outline

3. o Non-stock, non-profit corporation formed in 1995
o 28 Generator members, with a 18,132 MW Grid Installed
Capacity (minimum requirement of 50 MW capacity and
above)
o 11 Trustees in the Board of Directors
o Participate in forums/discussions on industry related issues
and concerns
Philippine Independent Power Producers
Association, Inc. (PIPPA)

4. Challenges and Opportunities to Scale-Up RE Investment
in the Philippines

5. Solution: Grid Planning, Competitive Renewable Energy Zones (CREZ), &
Ancillary Services
Grid Security (Challenge)
● Use transmission to direct RE development to places that
optimize use of the indigenous resources and maximize
benefits to the people of the Philippines.
● However, for T/L and S/S Upgrades and Expansion not
included in NGCP’s TDP/CAPEX, developers are asked to
advance the cost.
● Ancillary Service Competitive Selection Process and the
Reserve Market implementation are necessary to attract the
necessary AS investments

6. Solution: Maximize the Energy Virtual One-Stop-Shop (EVOSS)
evoss.ph
Permitting (Challenge)
● An online system that allows the
coordinated submission and synchronous
processing of all required data and
information, and provides a single
decision-making portal for actions on
applications for permits or certifications
necessary for, or related to, an application
of a proponent for new power generation,
transmission, or distribution projects.
● Some of the processes can further be
streamlined to accelerate permitting
timeline - EVOSS has cut the number of
days from 1,876 to 1,773 days

7. ● Lenders require Power Supply Agreement
(PSA) before commencing its funding
○ Merchant Plants have limited access
to financing (Generators that would
want to sell output though the
Wholesale Electricity Market)
Financing (Challenge)
Solution: Additional Markets, CSP, Removal of Secondary Price Cap

8. Renewable Portfolio Standards (RPS)
Policies to Support RE (Opportunity)
1%
2.52%
● Market-based policy that mandates electricity suppliers
to source an portion of their energy supply from eligible
RE resources
Basis and reference:
RA 9513
DOE DC2017-12-0015
DOE DC2018-08-0024

9. Basis and reference:
DOE DC2021-11-0036
● Mechanism to facilitate contracting by Qualified Suppliers
with Qualified Customers through a competitive process or
auction.
● Supports the development of new RE Projects under
competitive process, with long-term contracts
Green Energy Auction Program (GEAP)
Policies to Support RE (Opportunity)

10. ● A Renewable Energy Policy
Mechanism which shall provide
end-user the option to choose
RE Resources as their source of
Energy
Green Energy Option Program (GEOP)
Basis and References:
RA 9513
DOE DC2018-07-0019
ERC Resolution No. 08, Series of 2021
Policies to Support RE (Opportunity)
Source: DOE Presmat

11. Thank you!