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Renewable Energy Development and Related Promotion and Pricing Mechanism in the Philippines

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. BACKGROUND/COUNTRY PROFILE . CURRENT ENERGY SITUATION.

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Renewable Energy Development and Related Promotion and Pricing Mechanism in the Philippines

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  1. 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

  2. OUTLINE OF PRESENTATION

  3. BACKGROUND/COUNTRY PROFILE

  4. CURRENT ENERGY SITUATION Fuel Input Mix for Power Generation Primary Energy Mix

  5. RENEWABLE ENERGY DEVELOPMENT National Renewable Energy Program (NREP) Passage of Republic Act 9513 or Renewable Act of 2008 National Renewable Energy Board (NREB) -Accelerates the economy’s RE development Renewable Energy Management Bureau (REMB)

  6. NATIONAL RENEWABLE ENERGY PROGRAM (NREP) Institutionalize a comprehensive approach to accelerate the applications of renewable energy technologies in a sustainable manner The 2010 RE Capacity level tripled by 2030

  7. SUB-SECTORAL PROGRAMS

  8. 2011 2015 2020 2025 2030 Infrastructure support for blends increase • RA 9513 is in full swing • FIT for biomass is viable • B10 & E20 • B20 & E85 • B5 2017 2021 2012 2015 DEVELOP BEP IMPLEMENT & UPDATE BEP PLANS, PROJECTS & ACTIVITIES BIOMASS ENERGY ROADMAP M I L E S T O N E 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 • E10 • B2 • E5 M A J O R S T R A T E G Y

  9. 2011 2015 2020 2025 2030 • RA 9513 is in full swing • GEP is in place • Geothermal Training Center • 220 MW additional installed capacity • 1,100 MW additional installed capacity • 95 MW additional installed capacity • 80 MW additional installed capacity 2012 2015 2020 2025 DEVELOP GEP IMPLEMENT & UPDATE GEP PLANS, PROJECTS & ACTIVITIES GEOTHERMAL ENERGY ROADMAP M I L E S T O N E 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 M A J O R S T R A T E G Y

  10. 2011 2015 2020 2025 2030 • RA 9513 in full swing • FIT for solar is viable • SEP in place • PV Net Metering Demo • Additional 269 MW capacity • CSP Demo Power Facility • PV Institute • Smart Grid Demo • Established Solar Laboratory • PV reached Grid Parity • Integration of CSP 2012 2015 2017 2020 DEVELOP SEP IMPLEMENT & UPDATE SEP PLANS, PROJECTS & ACTIVITIES SOLAR ENERGY ROADMAP M I L E S T O N E 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 M I L E S T O N E S M A J O R S T R A T E G Y

  11. 2011 2015 2020 2025 2030 • RA 9513 in full swing • FIT for hydro is viable • HOEP in place • 98 MW additional installed capacity (2.15% of the small-hydro target capacity) • 2,958 MW additional capacity (62.5% of the hydro target hydro capacity) • First OTEC facility is added to the grid • 1,575 MW additional installed capacity (35.4% of the hydro target capacity) • At least two new OTEC facility is added to the grid 2012 2015 2020 2025 DEVELOP HOEP IMPLEMENT & UPDATE HOEP PLANS, PROJECTS & ACTIVITIES HYDRO AND OCEAN ENERGY ROADMAP 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 M I L E S T O N E S M A J O R S T R A T E G Y

  12. 2011 2015 2020 2025 2030 • RA 9513 is in full swing • FIT for wind is viable (on-grid & off-grid) • Transmission Development Plan • Distribution Development Plan • Additional 855 MW capacity • Additional 442 MW capacity • 1,172 MW additional capacity • Smart Grid Demo • Wind power reached Grid Parity 2015 2012 2020 2022 2025 DEVELOP WEP IMPLEMENT & UPDATE WEP PLANS, PROJECTS & ACTIVITIES WIND ENERGY ROADMAP 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 M I L E S T O N E S M A J O R S T R A T E G Y

  13. RE POLICY MECHANISM

  14. RENEWABLE ENERGY PORTFOLIO STANDARDS • Initial installation targets for RPS until 2015

  15. FEED-IN-TARIFF (FIT)

  16. 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

  17. NET METERING SYSTEM

  18. CURRENT STATUS • Further guidelines on the payment and collection of FIT Allowance has been submitted by DOE to ERC for review and approval; • The ERC posted invitation to stakeholders for comments on the FIT All guidelines; • FIT and FIT All System implementation pending resolution of some administrative issues

  19. Thank You for your attention!

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