Opportunities and Development in the Renewable Energy and Biomass - PowerPoint PPT Presentation

Opportunities and Development in the Renewable Energy and Biomass Energy Status in the Philippines Biogas Asia Pacific Forum Sunway Pyramid Convention Centre, KL, Malaysia JOSELITO E. CALIP Senior Science Research Specialist Biomass Energy Management Division Renewable Energy Management Bureau Philippine Department of Energy

Renewable Energy Technologies omass / ofuels eothermal olar Power ydropower cean ind Power DEPARMENT OF ENERGY

Challenges and Barriers in Developing Renewable Energy • High upfront and technology costs • Non-competitiveness • Non-viable markets • Inaccessible Financial Packages • Social Acceptability . DEPARMENT OF ENERGY

Landmark Law • To address the barriers and challenges in developing renewable energy resources , the Government promulgated landmark Law to accelerate development of renewable energy resources – Republic Act No. 9367 known as Biofuel Act of 2006 – Republic Act No. 9513 , Renewable Energy Act of 2008 DEPARMENT OF ENERGY

R. A. No. 9513: The Renewable Energy Act of 2008 Accelerate the development of the country’s renewable energy resources by providing fiscal and non-fiscal incentives to private sector investors and equipment manufacturers / suppliers. DEPARMENT OF ENERGY

Policy Implementation  Establishment of the Renewable Energy Management Bureau  DOE’s lead unit in the implementation of the Acts  Operationalized on 14 July 2009  Creation of the Interim Negotiating Panel for RE Service / Operating Contracts on 09 September 2009  Creation of the National Renewable Energy Board  Created Sub-committees and working groups to facilitate the formulation of mechanisms, rules and guidelines on the ff:  Renewable Portfolio Standard / Feed In Tariff  Net Metering  Green Energy Option  Renewable Energy Trust Fund  Creation of the National Biofuels Board  Formulated the National Biofuels Program  Promulgated the Joint Administer Order providing guidelines for the production, transportation, storage, and handling of biofuels in the country. DEPARMENT OF ENERGY

Policy Directions  Accelerate the exploration and development of renewable energy resources  achieve energy self-reliance  to reduce the country’s dependence on fossil fuels  minimize the country’s exposure to price fluctuations  adoption of clean energy to mitigate climate change  promote socio-economic development in rural areas  Increase the utilization of renewable energy by providing fiscal and non fiscal incentives; DEPARMENT OF ENERGY

Policy Mechanisms  Lowering of investment costs  Fiscal Incentives  Income Tax Holiday and Low Income Tax Rate  Reduced Government Share  Duty-free Importation of Equipment and VAT-zero Rating  Tax Credit on Domestic Capital Equipment  Special Realty Tax Rate on Equipment and Machinery  Cash Incentive for Missionary Electrification  Exemption from Universal Charge  Payment of Transmission Charges  Tax Exemption on Carbon Credits DEPARMENT OF ENERGY

Policy Mechanisms  Enhanced Competitiveness  Mandatory Utilization of RE Resources  Biofuels Mandate  Renewable Portfolio Standard (RPS)  Feed-In Tariff (FIT)  Provision of Interconnection / Ancillary Services  Other Market Options  Net Metering Concept  Green Energy Option DEPARMENT OF ENERGY

Renewable Energy Outlook, 2011 – 2030 under the “National Renewable Energy Program” Target additional Consolidated Milestones geothermal capacity of 1,495 MW is reached 2011 2025 2015 2020 2027 2030 Promulgation of remaining policy Target additional hydro Target additional mechanisms, rules capacity of 5,408 MW is solar capacity of under the RE Law reached by 2025 284.05 MW is completed by end- reached by 2030 2011 1 st Ocean Target additional Target additional wind Target ocean biomass capacity Energy facility capacity of 2,469 MW is power capacity of 264.7 MW is operational reached by 2022 of 10 MW is reached reached by 2030 Implementation of Sectoral Sub-Programs and the Policy and Program Support Component Mandatory E10 B10 and E20 by B20 and E85 Mandatory B5 to all 2020 by 2025 to all Gasoline by Diesel by 2015 2012 7,638.2 MW 12,775.9 15,204.7 MW 15,319 MW by 2015 MW by 2020 by 2025 by 2030 Existing RE capacity, 2010: 5,369 MW Targeted RE-based Installed Capacity Note: The National Renewable Energy Program (NREP) is a live document and will be subjected to DEPARMENT OF ENERGY public consultations. Figures presented may change based on regular updates of the NREP.

Government Policy National Renewable Energy Program  Increase RE-based capacity by 200% within the next 20 years (2011-2030)  Increase non-power contribution of RE to the energy mix by 10 MMBFOE in the next ten years  Be the number one geothermal energy producer in the world (additional 1,495 MW)  Be the number one wind energy producer in Southeast Asia (up to 2,500 MW)  Double hydro capacity (additional 5,400 MW)  Expand contribution of;  biomass - 265 MW  solar - at least 280 MW  ocean energy – at least 10 MW DEPARMENT OF ENERGY

Updates on RE Policy Mechanisms Renewable Portfolio Standard (RPS) • Mandatory (percentage) utilization of RE generation system in on-grid systems • For Department of Energy’s finalization Feed-in-Tariff (FIT) • Priority connection to the grid • Priority purchase and transmission of and payment for by grid system operators • Fixed tariff for 20 years • To be applied for generation utilized in complying with RPS • The FIT Rules was promulgated on August 12, 2010. • The ERC approved the FIT Rates on July 27, 2012. DEPARMENT OF ENERGY

Updates on RE Policy Mechanisms • Selection of Feed-in-Tariff (FIT) Eligible RE Projects – The DOE issued Department Circular No. 2013-05-009 dated May 28, 2013, entitled the “Guidelines for the Selection Process of Renewable Energy Projects Under Feed-in Tariff (FIT) System and the Award of Certificate for FIT Eligibility”. The Said Circular took effect June 2013 • FIT Allowance - FIT-ALL Payment and Collection Guidelines – The ERC Approved the Guidelines on December 2013 – The ERC already allowed the collection od FIT ALL on February 2015 • The DOE transmitted an amendments of its Certification on Installation Target from 50 MW to 500 MW for Solar Energy Generation under the Feed-In Tariff (FIT) System last May 26, 2014 to ERC . DEPARMENT OF ENERGY

Updates on RE Policy Mechanisms Net-Metering Rules and Interconnection Standards • Connection / sale of customers’ RE generation to the grid • The ERC approved the Net Metering Rules last May 27, 2013 • Conducting nationwide IEC for LGUs, DUs, consumers Renewable Portfolio Standards (RPS) for Missionary Areas • Mandated minimum percentage of RE generation • For NREB’s finalization Green Energy Option Program • End- users’ option to purchase electricity from RE facilities (open access) • For Department of Energy’s finalization DEPARMENT OF ENERGY

Feed-In Tariff (FIT) Rates RE Technology FIT Rate Degression Rate Installation ($/kWh) Target (MW) Wind 0.5% after 2 years from effectivity 200 0.136 of FIT Biomass 0.5% after 2 years from effectivity 250 0.153 of FIT Solar 6% after 1 year from effectivity of 500* 0.198** FIT Run-of-River 0.5% after 2 years from effectivity 250 0.224 Hydropower of FIT Ocean Deferred 10 1,210 MW * Amended solar energy installation target from 50 MW to 500 MW. ** Under review by the Energy Regulatory Commission, in reference to its Resolution No. 10, Series of 2012 approving the FIT Rates. DEPARMENT OF ENERGY

Biogas Technology Assessment in the Philippines Gener neral al Objec ectiv ive The general objective of this project is to assess the status of biogas technology and its resources in the Philippines. Specific Objectives:  update the list of biogas installations in the country;  evaluate the extent of utilization of biogas technology;  develop database of biogas resources;  re-assess the barriers of promoting and using biogas technology;  establish a benchmark for biogas technology commercialization;  update the country list of information of biogas practitioners, consultants and constructors;  develop GIS-based maps of biogas installations and resources; and,  link the updated biogas technology website to the DOE website. DEPARMENT OF ENERGY

Biogas Technology Assessment in the Philippines EXPECTED OUTPUT • Comprehensive database on biogas technology • GIS-based maps DEPARMENT OF ENERGY

BIOGAS PROJECTS (Small Scale) Two Chamber Rectangular Digester with Floating Gasholder Balloon-Type Digester (Philippines) DEPARMENT OF ENERGY

BIOGAS PROJECTS (Medium-Large Scale) Covered Lagoon Digester DEPARMENT OF ENERGY