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Philippines | Jun-16 | PHILIPPINE RENEWABLE ENERGY SITUATIONER
The document summarizes the renewable energy situation in the Philippines. It outlines key policies and incentives to promote renewable energy development established under the Renewable Energy Act of 2008. These include a renewable portfolio standard, feed-in-tariff, and green energy option. It also provides data on the current and projected energy generation mix in the Philippines, which aims to achieve 30% renewable energy by 2030. The document further introduces PNOC Renewables Corporation, a government corporation that develops renewable energy projects and partners with private entities and local communities to expand access to renewable sources.
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Philippines | Jun-16 | PHILIPPINE RENEWABLE ENERGY SITUATIONER
- 1.
- 2. Accelerate the developmentof the country’s renewable energy resources by providing fiscal and non-fiscal incentives to private sector investors and equipment manufacturers / suppliers. RA No. 9513: Renewable Energy Act of 2008
- 3. • A policywhich places an obligation on the electric power industry participants such as generators, distribution, utilities, or suppliers to source or produce a specified fraction of their electricity from eligible RE resources. • Purpose: To contribute to the growth of the renewable energy industry by diversifying energy supply and to help environmental concerns of the country by reducing greenhouse emissions. Renewable Portfolio Standards (RPS)
- 4.
- 5. • The REMwill be a sub-market of the WESM where the trading of RE certificates may be made. Renewable Energy Market (REM)
- 6. • A mechanismto be established by Philippine Department of Energy which shall provide end-users the option to choose RE Resources as their source of energy. Green Energy Option (GEO)
- 7. RE Fiscal Incentives IncentiveRE Developer RE Commercialization 7-year Income Tax Holiday Yes Yes Duty-free Importation Yes Yes VAT-free importation No Yes Special Realty Tax Rate Yes Yes Net Operating Loss Carryover Yes Yes 10% Corporate Tax Rate Yes Accelerated Depreciation Yes Yes Zero Percent VAT on RE Sales and Purchases Yes Yes Cash Incentive (50% of UC for Missionary Electrification Yes Tax Exemption on Carbon Credits Yes Tax Credit on Domestic Capital Equipment & Services Yes Yes
- 8. Power Generation Mix Philippinesvs. ASEAN Member States ASEAN-6 Power Generation Mix, as of 2013 Source: DOE, EGAT, Ministry of Energy and Mineral Resources (Indonesia), Economic Planning Unit (EPU-Malaysia) ERAV and EMA * Include Import Other RE
- 9. PH vs ASIANCOUNTRIES Country RE Component (%) Philippines 26 Thailand 12 Indonesia 12 Malaysia 11 Vietnam 47 Singapore 4 ***Philippines has the 2nd (26%) highest RE component among the neighboring countries next to Thailand. **Vietnam has the highest (47%) Hydro component into their Total Power Generation mix.
- 10. Coal 11.3% Oil Based 37.9% Geothermal 5.3% Hydro 45.0% Solar 0.0% Biomass 0.5% Dependable Capacity= 15,878 MW RE Share = 31.33% Dependable Capacity = 11,868 MW RE Share = 25.3% Source: DOE List of Existing Power Plant, June 2015 Coal 38.0% Oil Based 13.4% Natural Gas 23.2% Geothermal 5.8% Hydro 18.1% Wind 0.9% Biomass 0.2% Solar 0.3% Dependable Capacity = 2,150 MW RE Share = 47.7% Dependable Capacity = 1,860 MW RE Share = 50.8% 2015 Dependable Capacity Mix LUZON VISAYAS MINDANAO Coal 29.3% Oil Based 22.9% Geothermal 38.0% Hydro 0.5% Biomass 3.3% Natural Gas 0.0% Solar 1.9% Wind 4.0%
- 11. Total Generation =28,033 GWh RE Share = 13.5% Source: submitted Monthly Operations Report NGCP Daily Operations Report Total Generation = 5,336 GWh RE Share = 55.1% Total Generation = 4,837 GWh RE Share = 51.4% Total Generation = 38,206 GWh RE Share = 24.1% LUZON VISAYAS MINDANAO Coal 16.9% Oil-based 31.8% Natural Gas 0.0% Geothermal 8.8% Hydro 42.2% Wind 0.0% Biomass 0.3% Solar 0.0% Power Generation Mix January to June 2015 Coal 51.9% Oil-based 2.2% Natural Gas 32.5% Geothermal 7.3% Hydro 5.2% Wind 0.7% Biomass 0.2% Solar 0.1% Coal 38.9% Oil-based 6.0% Natural Gas 0.0% Geothermal 52.5% Hydro 0.3% Wind 1.2% LFG 0.0% Biomass 0.7% Solar 0.4%
- 12. 0 20 40 60 80 100 120 140 2001 2005 2009 2013 2017 2021 2025 2029 2033 2037 2041 2045 2049 GW Business- As-Usual Other Tech RE Geothermal Hydro Coal NG Oil 0 20 40 60 80 100 120 140 2001 2005 2009 2013 2017 2021 2025 2029 2033 2037 2041 2045 2049 GW CleanEnergy Scenario Other Tech RE Geothermal Hydro Coal NG Oil Projected Energy Mix DOE plans to have a balanced mix of energy sources: (30% RE, 30% NatGas, 30% Coal, 10% Others)
- 13. Power andRenewable Energy • Must Dispatch and Priority Dispatch of Renewable Energy Resources in the WESM • Mandating All DUs to Undergo Competitive Selection Process (CSP) in Securing Power Supply Agreements (PSA) • Full Implementation of Retail Competition and Open Access (RCOA) • Maintaining the Share of RE Resources in the Country's Installed Capacity at 30% • Further Enhancement of the WESM Design and Operations • Commercial Operation of the Central Scheduling and Dispatch of Energy and Contracted Reserves in the WESM • Adoption of WESM Offer Price Cap (PHP 32) and Floor Cap Major Policies Issued
- 14. Department of Energy PNOCRC PNOC Renewables Corporation PNOC EC PNOC Exploration Corporation
- 15. VISION PNOC Renewables Corpwill be a catalyst & prime mover for Philippine Renewable energy development by 2030. Renewables Corporation
- 16.
- 17. MINOR INVESTOR INTHE 20 MW MAIBARARA GEOTHERMAL PROJECT
- 18. 1MW Rizal HydroPower Plant
- 19. 100 kW PNOCRC & Philippine Heart Center Inauguration
- 20. 100 kW PNOCRC & DOST-PCIERD
- 21. 100 kW UPDILIMAN CAMPUS
- 22.
- 23. We Target tohave 20 Government Agencies signed up next year… 25
- 24.
- 25. • GEOTHERMAL – Investmentin a 20MW Geothermal Project • SOLAR – Development of 22 Solar Rooftop Projects – Development of 6 Solar Farm Projects totalling 25MW • ESCO – Development of 15 LED Retrofitting Projects 27
- 26. • BIOMASS – Investmentin a 2MW Waste-to-Energy Project – Development of 3 Biomass Projects totaling 3MW • WIND – Development of three small-scale wind projects totaling 300kW • HYDRO – Development of 6 mini hydropower projects totaling 16 MW – 630 kW Munoz 28
- 27. WE CAN DEVELOPPROJECTS FROM PRE- DEVELOPMENT TO COMMERCIALITY 29 PRE-DEVELOPMENT STAGE DEVELOPMENT STAGE Commercial Operation Award of contract area Service Contract • Studies • Secure Permits • Sales Agreement Pre-Dev Stage • Financial Closure • Detailed Design • Construction Dev Stage
- 28. Requirements of REService Contract Pre-Development Stage to Development/Commercial Stage 1. Letter of Application For RESC or Conversion from Pre- development Stage to Development Stage 2. For Explored Projects prior to RA 9513, same Requirements under Pre-development Stage 3. Declaration of Commerciality based on Identified Market 4. Detailed Feasibility Study and Engineering Design
- 29. Requirements of REService Contract Pre-Development Stage to Development/Commercial Stage 5. Permits, Clearances, Certificates, Agreements • Environmental Compliance Certificate or Certificate of Non-Coverage • Free and Prior Informed Consent, Pre-condition and/or Non-overlap • Special Land Use Permit / Forest Lease Agreement, Proof of Ownership / Lease Agreement • Water Rights Permit (Hydropower) • Rights of Way • LGU Endorsements • Other applicable regulatory requirements
- 30. PARTNERSHIPS WITH THEPRIVATE SECTOR • As a bidder for projects posted in PhilGEPS – Following RA 9184 (Government Procurement Reform Act) • As a Joint Venture Partner – Following 2013 NEDA Joint Venture Guidelines • Through a Public-Private Partnership (PPP) – Following RA7718 (Revised BOT Law) – With the assistance of the PPP Center
- 31. WHAT ARE THEREQUIREMENTS? Foreign partners: Register the company in the Philippines Letter of Intent to either partner with PNOC RC or engage PNOC RC for its services Proof of Legal, Technical and Financial Capabilities 33 Renewables Corporation
- 32. PNOC RC’s SMARTVillage Initiatives Partnership with National Power Corporation (also a GOCC) responsible for operation and improvement of electricity supply for Small Power Utilities Group (SPUG) areas Continued linkaging and providing technical support with LGUs on RE resource assessment 34 Renewables Corporation
- 33. PNOC RC’s SMARTVillage Initiatives Implemented the Barangay Electrification Program (BEP) in 92 off- grid barangays nationwide in 2009 Social preparation, supply, delivery, installation of solar home systems, conduct after sales assessment 35 Renewables Corporation
- 34. THANK YOU andget in touch: Email: info@pnoc-rc.com.ph Website: http://www.pnoc-rc.com.ph/ Phone: +63 (02) 840 – 3080 Renewables Corporation
Editor's Notes
- #9 The primary energy mix provides a picture of the country’s available energy resources, whether harnessed locally or foreign-sourced and takes into account its socio-economic and environmental requirements. In 2014, the country’s supply of energy reached 47.5 million tons of oil equivalent (MTOE), of which, roughly 56 percent was indigenously sourced. Blessed with natural resources, our goal is to sustain a diversified energy mix. Contribution from renewable energy was 39 percent and with the addition of natural gas, our green energy sources yielded a total share of 46 percent. The bulk of oil and coal constitute the major imports of the country with oil primarily used in the transport and minimally for power generation. Coal on the other hand has also power and non-power applications.
- #10 The slide shows the comparative power generation mix of the Philippines against ASEAN Member States. Compared to other ASEAN Member States, it is noteworthy to highlight that the Philippines has a diversified sources for power generation. The biggest share of about 43 percent for power generation comes from coal, followed by natural gas at 25 percent, hydro and other RE technologies both at 13 percent and oil at 6 percent.
- #12 11
- #13 12
- #15 Following are the major policy issuances for Power and Renewable Energy: Promulgated the framework for the integration in the WESM of Preferential Dispatch Generating Units consistent with the goals of the EPIRA and the RE Act. The framework defined the Must Dispatch and Priority Dispatch pursuant to the RE Act including the high-level process for the qualification, certification, and registration of generating units designated as must dispatch and priority dispatch (collectively referred to as Preferential Dispatch Generating Units) in the WESM. As part of continuing preparation for the implementation of WESM Reserve Market, the DOE promulgated the protocol for the Central Scheduling and Dispatch of Energy and Contracted Reserves in preparation for the commercial operation of the WESM Reserve Market. A central scheduling and dispatch of energy and contracted reserve capacities for WESM shall be in effect as part of the trial operations in order for the DOE to monitor all available generation capacity in both energy and reserve, and to prepare participants for the eventual commercial operation of the WESM Reserve Market. The central dispatch protocol took effect last December 18, 2015. The DOE provided the policies for further enhancement of the WESM design and operations. The policy circular adopted improvements in the existing WESM design to address technical and operational concerns and thereby improvement the competitiveness of the market. The improvements will be implemented through amendments and/or promulgation of new provisions of the WESM Rules and upgrading of the existing hardware and software components used in WESM Operations. The DOE, ERC and PEMC issued Joint Resolution adopting a new WESM Offer Price Cap at PhP32,000/MWh and WESM Offer Price Floor of negative PhP10,000/MWh. These mitigating measures were based on the recommendation of an independent study conducted to review and develop mitigating measures for the WESM. This measure was set to mitigate sustained high prices in the WESM. The DOE implemented the Retail Competition and Open Access (RCOA) in Luzon and Visayas on 26 June 2013 on a voluntary basis and has so far recorded a total of 372 Contestable Customers participating. For the continuing implementation, specifically requiring full Contestability for specific threshold, the DOE provided the policies for the full Implementation of Retail Competition and Open Access in the Philippine Electric power Industry with specific timelines for each demand threshold to comply with the contestability requirement; contestable customers’ options for sourcing supply; and other provisions that will help address issues expected to arise when customers migrate to retail market.
- #16 …to promote and undertake research, development, utilization, manufacture, sale, marketing, distribution and commercial application of new, renewable, non conventional and environment-friendly energy sources…
- #26 Took off from what the DOE launched early 2014. We started this year with 2 government agencies (Heart Center, DOST). MOA signing Target to sign agreements with 12 other government agencies within the Meralco franchise area
- #30 And yet we are able to develop projects from start to finish (needs better wording). Medyo strong statement ito pero sige lang!