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. Department of Energy
Empowering the Filipinos
Renewable Energy
Policy Mechanisms and
Investment
Opportunities
Director Mylene C. Capongcol
Renewable Energy Management Bureau
Department of Energy, Philippines
01 June 2022
1st Clean Energy Finance and Investment
Mobilisation Programme Workshop

2. Department of Energy
Empowering the Filipinos
RE Sector At A Glance
RE Investment
Opportunities
Contents
RE Market
Development Support
Mechanisms

3. RE Sector At A Glance

4. Department of Energy
Empowering the Filipinos
Philippines: Forefront of RE Development
Republic Act (RA) No. 7638 or the
Department of Energy Act of 1992
Develop and update Philippine energy programs which shall
provide for integrated and comprehensive exploration,
development, utilization, distribution and conservation of energy
resources, with preferential bias for environment-friendly,
indigenous, and low-cost sources of energy
RA No. 9136 of the Electric Power Industry
Reform Act of 2001
Promote the utilization of indigenous, and new and RE
resources in power generation to reduce dependence on
imported energy
RA No. 9513 or the Renewable Act of 2008
Accelerate the exploration, development, utilization, and
commercialization of RE by institutionalizing the development of
national and local capabilities in the use of RE systems, and
promoting its efficient and cost-effective commercial application
by providing fiscal and non-fiscal incentives
Philippine Energy Plan, 2020-2040
Transformational plan to bring in more of the clean
energy fuels and technologies
Power Development Plan (PDP),
2020-2040
Adopted the national RE power generation mix
targets in line with the commitment towards a
cleaner energy transition
Proposed National Renewable
Energy Program (NREP), 2020-2040
Embodies the country’s long-term RE targets and
policy and program mechanisms to achieve the
targets

5. Department of Energy
Empowering the Filipinos
Installed Capacity and Gross Generation
Coal 42%
Oil 16%
Natural Gas 13%
RE 29%
Installed Capacity - 26,286 MW
57%
3%
19%
21%
Coal Oil Natural Gas RE
Gross Generation - 101,756 GWh
In 2020, RE comprised 29% of the installed capacity and 21% of the
gross power generation of the country.

6. Department of Energy
Empowering the Filipinos
RE Installed Capacity and Gross Generation
Installed Capacity - 7,653 MW
(29%)
Gross Generation – 21,609 GWh
(21%)
7% Geothermal 11%
14% Hydro 7%
2% Biomass 1%
4% Solar 1%
2% Wind 1%

7. Department of Energy
Empowering the Filipinos
2,699.79 MW
of additional RE Installations
since the effectivity of RE Act in 2009
PhP 262.02 B
estimated cost of investments
184,055
estimated Green Jobs Created
25.973 Million tons
estimated GHG Emission Reduction
RE Capacity Addition and Highlights, 2009-2021
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Wind - - - - - 303.90 90.00 16.00
Hydropower 10.40 57.30 4.20 11.80 14.78 17.96 10.53 8.50 78.92 49.79 0.30 3.46
Solar - - - - - 22.00 142.87 734.72 25.20 4.20 29.55 114.27 313.71
Geothermal - - - - - 50.00 10.00 12.00 10.50
Biomass 37.19 49.30 23.00 19.81 0.88 12.00 109.50 40.80 19.12 41.74 193.57 6.00
-
100.00
200.00
300.00
400.00
500.00
600.00
700.00
800.00
900.00
MW

8. Department of Energy
Empowering the Filipinos
Awarded RE Contracts
0 3,000 6,000 9,000 12,000 15,000 18,000 21,000
Wind
Ocean
Hydro
Solar*
Geothermal
Biomass**
MW
Installed Capacity Potential Capacity
As of 31 December 2021
*Capacity is in MWp
**Included 3 stranded power projects with installed capacity of 70MW and 3 Non Power facilities (Steam)
82 Projects
37 Projects
307 Projects
416 Projects
8 Projects
109 Projects
As of 31 December 2021, a total of 959 projects were
awarded with RE Contracts with an installed capacity of
5,584 MW and potential of 48,069 MW.

9. RE Market Development
Support Mechanisms

10. Major RE Policies and Programs
FEED-IN TARIFF
Provides guaranteed fixed payments per
kWh of electricity produced from
emerging RE resources
FISCAL INCENTIVES
Given to RE project developers,
suppliers, and manufacturers to
encourage investments and create a
robust market for RE
RENEWABLE PORTFOLIO
STANDARDS
Requires industry participants to source
or produce a specified portion of their
supply from eligible RE facilities
RE MARKET
NET-METERING PROGRAM
Allows end-users to generate electricity
from RE-based systems up to 100 kW for
own use and sell their excess to the grid
GREEN ENERGY OPTION
PROGRAM
Provides end-users the option to choose RE
resources as their source of energy
COMPETITIVE RE ZONES
Facilitates proactive transmission planning by
identifying areas with the most economically
viable RE resources
GREEN ENERGY AUCTION
PROGRAM
Intends to provide additional market for RE
through a competitive electronic bidding of RE
capacities
Serves as the venue for the transparent and
fair trading of RE Certificates
9 RE TECHNOLOGY DEVELOPMENT
Covers off-shore wind, waste-to-energy, and
ocean energy development; Financial and
Technical Assistance Agreement for Geothermal
Energy Projects, and Expanded Rooftop Solar
Program (ongoing)

11. Renewable
Portfolio
Standards
On-Grid and
Off-Grid
Major RE Policies and Programs
On-Grid
The RPS mandates Load Serving Entities to source a
minimum percentage of RE in their respective supply
portfolios
▪ Increase the minimum annual RE percentage increment
from 1% to 2.52% starting 2023
▪ Supports the aspirational target of 35% RE share in the
power generation mix by 2030 and 50% by 2040
equivalent to 39 TWh and 153 TWh, respectively
Off-Grid
▪ Completed FGDs on the Proposed Revised RPS Off-Grid
Rules in Luzon, Visayas and Mindanao in May 2022.
▪ Level of compliance will depend on the Optimal Supply
Mix of the island and/or off-grid area.
▪ At least minimum annual RE generation requirements for
generators; DUs’ mandates expanded

12. Green Energy
Auction
Program
Geothermal
Energy
Development
Major RE Policies and Programs
Intended to support and/or facilitate immediate and timely
investments in new or additional RE capacities to ensure provision
of adequate supply under a competitive process
▪ DC2021-11-0036 or the “GEAP Guidelines” was signed on 03
November 2021.
▪ 1st Auction Installation Target Capacity of 2,000 MW
▪ Activities are ongoing prior to the auction proper
The government may allow 100% foreign ownership/
participation for large-scale projects, provided:
• Investment cost is at least USD 50M; and
• Covered by Financial and Technical Assistance Agreement, duly
approved by the President of the Philippines.
Ongoing study to support development by derisking geothermal
investments

13. Waste-to-
Energy
Development
Offshore Wind
Development
Major RE Policies and Programs
• Published the Philippine Offshore Wind Roadmap on April 2022
through the support of World Bank Group and funding from
Energy Sector Management Assistance Program
• Completed webinar series for government and private sector
under the ASEAN-Low Carbon Energy Programme
• Established the Philippine Offshore Wind – Joint Industry
Platform through the support of Carbon Trust
• Advancing WTE as an effective solution on municipal solid
waste management and contribute to supply sources.
• On 17 February 2022, the DOE issued DC No. DC2022-02-
0002 entitled “Prescribing the Policies and Programs to
Promote and Enhance the Development of Biomass Waste-to-
Energy (WTE) Facilities”
• Ongoing assessment of WTE potentials

14. Ocean/Tidal
Development
Expanded
Rooftop Solar
Program
Major RE Policies and Programs
▪ With assistance from the Energy Transition Partnership, the report
entitled “The Philippines Marine Renewables: Sustainable Energy
from Ocean Spaces and Resources” was completed in December
2021. A Stocktake and Options Report is intended to support the
DOE in developing the country’s potential marine resources.
▪ The development of Philippine Marine Energy Roadmap is to
follow.
Potential Ocean Energy Sites
in the Philippines
▪ The ERSP will provide opportunities to end-users and solar PV
developers and installers to utilize available rooftop spaces for solar
energy production.
▪ Will also allow commercial and industrial end-users with more than
100kW demand to build their own RE facilities and sell power in the
grid in times of supply shortfall.
▪ To introduce innovative mechanisms to further empower electricity
end-users to become “Prosumers.”

15. Renewable Energy Investment
Opportunities

16. Department of Energy
Empowering the Filipinos
National Renewable Energy Program
(NREP)
NREP sets a target of at least
35% RE Share
in the power generation mix by 2030
NREP aspires to increase the
RE Share to 50%
by 2040

17. Department of Energy
Empowering the Filipinos
Capacity in MW
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
110,000
120,000
MW
Existing Capacity Committed Capacity New Coal
New Gas New Geothermal New Hydro
New Biomass New Solar New Wind
Peak Demand 25% Reserve Margin
Source: PDP, 2020-2040
Power Demand and Supply Outlook, 2020-2040
Particulars 2025 2030 2035 2040
New Coal 0 0 0 0
New Gas 40 2,000 9,140 13,680
New Geothermal 150 400 400 480
New Hydro 0 1,905 5,880 16,315
New Solar 7,297 18,299 32,028 44,863
New Wind 0 631 1,451 11,255
New Biomass 0 0 45 270
Committed Capacity 4,321 5,421 5,421 5,421
Existing Capacity 22,317 22,317 22,317 22,317
Peak Demand 21,019 29,128 40,209 54,655
25% Reserve Margin 5,255 7,282 10,052 13,664
To reach the RE share target, a total of
73,183 MW additional RE capacity is
needed by 2040, which is about 10 times
more than the current level at 7,653 MW .

18. Department of Energy
Empowering the Filipinos
Sector Strengths
Strengths Excellent RE Resource Potentials
Enabling Laws, Policies, and Progams In Place
Strong Government Commitment Towards Energy
Transition and Climate Change Mitigation
Strong Private Sector Interest and Participation in RE
Investments
01
02
03
04
05 Strong Collaboration with RE Development Partners

19. Department of Energy
Empowering the Filipinos
Sector Challenges
Foreign Ownership Limitation
Big ticket RE Projects or emerging RE technologies requires huge
financing requirements and management expertise. Current
foreign ownership requirements limit the interest of the investors.
Permitting and Licensing Processes Remained a
Challenge
The tedious process in securing local and national permits from
various agencies and institutions caused significant delays in the
construction, commissioning, and commercial operation of RE
projects.
Grid Interconnection
Existing grid infrastructure has limited remaining capacity and the
needed grid expansion projects are usually delayed. These result
to the inability of the grid to immediately absorb new RE projects
and delays in its commercial operation.
RE Resource Development and Financing
The high cost and lack of model projects (e.g., offshore wind and
ocean technologies) made RE development a challenge.
Climate-Related Risks
Severe typhoons damaged some RE power plants leading to
extended periods of shutdown. Climate change also affected the
availability and output of RE resources. During drought or El Niño
season, electricity generation of hydropower plants are
significantly reduced.

20. Department of Energy
Empowering the Filipinos
Legislative Agenda
• Executive Order No. 30
• Creating the Energy Investment Coordinating
Council in order to Streamline the Regulatory
Procedures affecting Energy Projects
• RA No. 11032
• Ease of Doing Business Act of 2018
• RA No. 11234
• Energy Virtual One-Stop Shop (EVOSS) Act
• Department Circular No. DC2019-05-0007
EVOSS Implementing Rules and Regulations
• DC2019-10-0013
• Omnibus Guidelines Governing the Award and
Administration of RE and the Registration of RE
Developers
Enabling Policies and Laws for Investors

21. Department of Energy
Empowering the Filipinos
Legislative Agenda
• Proposed RPS Annual Percentage Increment
• From 1% to 2.52% starting 2023
• Commercial Operation of the RE Market
• Green Energy Auction Program
• 2,000 MW Capacity for the 1st Auction
• Preferential Dispatch of All RE Resources in the
Wholesale Electricity Spot Market
• Implementation of RPS Off-Grid Rules/Microgrid Act
• New Businesses/Partnerships created through new
RE Policies
• Geothermal Energy
• Waste-to-Energy
• Off-Shore Wind
• Ocean/Tidal Energy
• Expanded Rooftop Solar Program
Investment Opportunities

22. Department of Energy
Empowering the Filipinos
https://all-free-download.com/free-vector/download/smart-city-poster-buildings-internet-interface-icons-decor_6835742.html
Energy Security
Sustainable Energy
Resilient Infrastructure Competitive Energy Sector
Smart Homes and Cities
Empowered Consumers
Renewable Energy Energy Efficiency and
Conservation
Emerging and Innovative
Technologies
Information and
Communications
Technology
Energy
Resiliency
35% of power generation mix
by 2030; and 50% by 2040
5% energy savings on oil
products and electricity by
2040
Adopting advanced and
interoperable ICT in the energy
chain
10% EV penetration rate in road
transport by 2040; Exploring new
and efficient technologies
Resilient and climate-
proof energy
infrastructure
Where We Are Headed …

23. Thank You
Rizal Drive Corner 34th St.
Bonifacio Global City
Taguig City
www.doe.gov.ph
(632) 479 2900
doe.gov.ph
doe_ph