Renewable Energy Development and Related Promotion and Pricing Mechanism in the Philippines APEC WORKSHOP Chinese Taipei, 26-27 September 2013 ELVIRA TORRES-GELINDON Senior Researcher, APERC OUTLINE OF PRESENTATION RENEWABLE ENERGY DEVELOPMENT RE POLICY (PRICING) MECHANISM • Background/Country Profile • Current Energy Situation • National Renewable Energy Program (NREP) • Sub-Sectoral Programs and Targets • Renewable Energy Portfolio Standards (RPS) • Feed-in-Tariff (FIT) • Feed-in-Tariff Allowance (FiT All) • Net Metering System BACKGROUND/COUNTRY PROFILE CURRENT ENERGY SITUATION Primary Energy Mix Fuel Input Mix for Power Generation RENEWABLE ENERGY DEVELOPMENT National Renewable Energy Program (NREP) Passage of Republic Act 9513 or Renewable Act of 2008 -Accelerates the economy’s RE development National Renewable Energy Board (NREB) Renewable Energy Management Bureau (REMB) NATIONAL RENEWABLE ENERGY PROGRAM (NREP) Institutionalize a comprehensive approach to accelerate the applications of renewable energy technologies in a sustainable manner Development Framework Sectoral SubPrograms Policy and Program Support Setoral Targets 1. Increase geothermal capacity by 75.0 percent; 2. Increase hydropower capacity by 160 percent; 3. Deliver additional 277MW biomass power capacities; 4. Attain wind power grid parity with the commissioning of 2,345 MW additional capacities; 5. Mainstream an additional 284 MW solar power capacities and pursue the achievement of the 1,528 MW aspirational target; 6. Develop the first ocean energy facility for the country. The 2010 RE Capacity level tripled by 2030 SUB-SECTORAL PROGRAMS BIOMASS ENERGY ROADMAP 2011 2015 2020 M • B2 • E5 I L E S 2025 T O N E 2030 S Mainstreaming of 913 MW (6.398 GWH) biomass capacities (US$2.3 B) Displaced 2,600 Million Liters of Fossil Fuel (US$1.37 Billion) Generated jobs – 730 direct jobs Infrastructure support for blends increase • E10 • RA 9513 is in full swing • FIT for biomass is viable • B10 & E20 • B5 DEVELOP BEP 2012 • B20 & E85 2017 2015 2021 IMPLEMENT & UPDATE BEP PLANS, PROJECTS & ACTIVITIES M A J O R S T R A T E G Y GEOTHERMAL ENERGY ROADMAP 2011 2015 2020 M I L E S 2025 T O N E 2030 S Mainstreaming of 1,495 MW (81.06 TWH) capacities (US$3.153 B) Annual CO2 emission reduction - 60.795 Million Tons (US$303.975 M) Generated jobs – 2,541 direct jobs • RA 9513 is in full swing • GEP is in place • Geothermal Training Center • 220 MW additional installed capacity 2012 DEVELOP GEP 2015 • 1,100 MW additional installed capacity • 95 MW additional installed capacity • 80 MW additional installed capacity 2020 2025 IMPLEMENT & UPDATE GEP PLANS, PROJECTS & ACTIVITIES M A J O R S T R A T E G Y SOLAR M I ENERGY L E S T ROADMAP O N E S 2011 2015 2020 M I L E S 2025 T O N E 2030 S Mainstreaming of 1,528 MW (475 GWH) solar capacities (US$4.6 B) Annual CO2 Emission Reduction - 1.81 Million Tons (US$9.0 M) Generated jobs – 1,200 direct jobs • RA 9513 in full swing • FIT for solar is viable • SEP in place • PV Net Metering Demo 2012 DEVELOP SEP • • • • Additional 269 MW capacity CSP Demo Power Facility PV Institute Smart Grid Demo • Established Solar Laboratory • PV reached Grid Parity • Integration of CSP 2015 2017 2020 IMPLEMENT & UPDATE SEP PLANS, PROJECTS & ACTIVITIES M A J O R S T R A T E G Y HYDRO AND OCEAN ENERGY ROADMAP 2011 2015 M 2020 I L E S 2025 T O N E 2030 S Mainstreaming of 4,580 MW ( 24.072 TWH) hydro capacities (US$11.449 B) Annual CO2 Emission Reduction - 18.054 Million Tons (US$90.272 M) Generated jobs – 3,664 direct jobs • RA 9513 in • 98 MW additional full swing installed capacity • FIT for hydro (2.15% of the smallis viable hydro target • HOEP in capacity) place 2012 DEVELOP HOEP 2015 • 2,958 MW additional • 1,575 MW additional capacity (62.5% of the installed capacity (35.4% hydro target hydro of the hydro target capacity) capacity) • First OTEC facility is • At least two new OTEC added to the grid facility is added to the grid 2020 2025 IMPLEMENT & UPDATE HOEP PLANS, PROJECTS & ACTIVITIES M A J O R S T R A T E G Y WIND ENERGY ROADMAP 2011 2015 2020 2025 2030 M I L E S T O N E S Mainstreaming of 1,540 MW (3.372 TWH) wind capacities (US$3.85 B) Annual CO2 emission reduction - 2.529 Million Tons (US$12.7 M) Generated jobs – 1,280 direct jobs • RA 9513 is in full swing • FIT for wind is viable (on-grid & off-grid) • Transmission Development Plan • Additional 855 MW capacity • Distribution Development Plan • Additional • 1,172 MW additional • Wind power reached 442 MW capacity Grid Parity capacity • Smart Grid Demo 2012 DEVELOP WEP 2015 2020 2022 2025 IMPLEMENT & UPDATE WEP PLANS, PROJECTS & ACTIVITIES M A J O R S T R A T E G Y RE POLICY MECHANISM Renewable Portfolio Standards (RPS) • the minimum percentage of generation from eligible RE resources provided by the generators, distribution utilities and electric suppliers necessary in the application of FiT on a per technology basis; Feed-in-Tariff (FIT) • guaranteed payment in Philippine Peso per kilowatt-hour (“Php/kWh”) for electricity generated from emerging renewable energy technologies and actually delivered to the distribution and transmission network; Feed-in-Tariff Allowance (FIT All) • a uniform charge determined and collected by FIT All Fund Administrator which would cover the differential above the prevailing cost recovery rate for eligible RE generation actually delivered; Net Metering System • a consumer-based renewable energy incentive scheme wherein electric power generated by an end-user from an eligible on-site RE generating facility and delivered to the local distribution utility (DU) may be used to offset electric energy provided by the DU to the end-user during the applicable period. RENEWABLE ENERGY PORTFOLIO STANDARDS Initial installation targets for RPS until 2015 SOLAR – 50 MW WIND – 200 MW BIOMASS – 200 MW RUN-OFF RIVER HYDRO – 250 MW OCEAN – 10 MW FEED-IN-TARIFF (FIT) SOLAR – P9.68/kWh (USD 0.242/kWh) WIND – P8.53/kWh (USD 0.213/kWh) BIOMASS – P6.63/kWh (USD0.165/kWh) RUN-OFF RIVER HYDRO – P5.90/kWh (USD0.145/kWh) Still under study FEED-IN-TARIFF ALLOWANCE (FIT All) Source : Energy Regulatory Commission (ERC) FD- Total FIT Differential ; CRR – Cost Recovery Revenue; WCA – Working Capital Allowance; AA- Administration Allowance; DA – Disbursement Allowance NET METERING SYSTEM Proposed by the National Renewable Energy Board (NREB) to ERC a consumer-based renewable energy incentive scheme wherein electric power generated by an end-user from an eligible onsite RE generating facility and delivered to the local distribution utility (DU) may be used to offset electric energy provided by the DU to the end-user during the applicable period. CURRENT STATUS The ERC posted invitation to stakeholders for comments on the FIT All guidelines; Further guidelines on the payment and collection of FIT Allowance has been submitted by DOE to ERC for review and approval; FIT and FIT All System implementation pending resolution of some administrative issues Thank You for your attention!