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

DEPARMENT OF ENERGY

Renewable Energy Technologies

• mass /
• fuels

eothermal

• lar Power

ydropower cean ind Power

DEPARMENT OF ENERGY

• High upfront and technology costs
• Non-competitiveness
• Non-viable markets
• Inaccessible Financial Packages
• Social Acceptability

.

Challenges and Barriers in Developing Renewable Energy

DEPARMENT OF ENERGY

• 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

• f 2008

Landmark Law

DEPARMENT OF ENERGY

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.

• R. A. No. 9513: The Renewable Energy Act
• f 2008

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

• 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;

Policy Directions

DEPARMENT OF ENERGY

• 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

Policy Mechanisms

DEPARMENT OF ENERGY

• 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

Policy Mechanisms

DEPARMENT OF ENERGY

Renewable Energy Outlook, 2011 – 2030

under the

“National Renewable Energy Program”

Note: The National Renewable Energy Program (NREP) is a live document and will be subjected to public consultations. Figures presented may change based on regular updates of the NREP.

Consolidated Milestones

Implementation of Sectoral Sub-Programs and the Policy and Program Support Component

2011 2030 2015 2020 2025

Target additional hydro capacity of 5,408 MW is reached by 2025

Targeted RE-based Installed Capacity

7,638.2 MW by 2015 Existing RE capacity, 2010: 5,369 MW 12,775.9 MW by 2020 15,204.7 MW by 2025 15,319 MW by 2030

Target additional wind capacity of 2,469 MW is reached by 2022 Target additional geothermal capacity of 1,495 MW is reached

2027

Target additional solar capacity of 284.05 MW is reached by 2030 Target ocean power capacity

• f 10 MW is

reached by 2030 Target additional biomass capacity

• f 264.7 MW is

reached Promulgation of remaining policy mechanisms, rules under the RE Law completed by end- 2011 1st Ocean Energy facility

• perational

Mandatory E10 to all Gasoline by 2012 Mandatory B5 to all Diesel by 2015 B10 and E20 by 2020 B20 and E85 by 2025

DEPARMENT OF ENERGY

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
• cean 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

• 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 .

Updates on RE Policy Mechanisms

DEPARMENT OF ENERGY

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

Updates on RE Policy Mechanisms

DEPARMENT OF ENERGY

Feed-In Tariff (FIT) Rates

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.

RE Technology FIT Rate ($/kWh) Degression Rate Installation Target (MW) Wind

0.136

0.5% after 2 years from effectivity

• f FIT

200 Biomass

0.153

0.5% after 2 years from effectivity

• f FIT

250 Solar

0.198**

6% after 1 year from effectivity of FIT 500* Run-of-River Hydropower

0.224

0.5% after 2 years from effectivity

• f FIT

250 Ocean Deferred 10

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

• Comprehensive database on biogas technology
• GIS-based maps

EXPECTED OUTPUT

DEPARMENT OF ENERGY

Balloon-Type Digester

BIOGAS PROJECTS

(Small Scale)

Two Chamber Rectangular Digester with Floating Gasholder (Philippines)

DEPARMENT OF ENERGY

Covered Lagoon Digester

BIOGAS PROJECTS

(Medium-Large Scale)

DEPARMENT OF ENERGY

Biogas from Animal Waste Biogas from Food Waste

RE DEVELOPER POTENTIAL CAPACITY (MW) INSTALLED CAPACITY (MW) PROJECT TYPE LOCATION 1 Hacienda Bio-Energy, Inc.

• 0.90

Commercial Luzon

2 Solutions Using Renewable

Energy, Inc.

• 0.20

Commercial Luzon

3 Solutions Using Renewable

Energy, Inc.

• 0.15

Commercial Luzon

4 Asia Carbon Neutral Power

Corporation 2

• Commercial

Luzon Sub Total 2 1.25

1 Asia Goldenstar Dragon, Inc.

0.50

• Own Use

Luzon

2 Cavite Pig City, Inc.

• 1

Own Use Luzon

3 JTM Industrial Farms

0.30

• Own Use

Luzon

4 Marcela Farms, Inc.

• 0.56

Own Use Visayas Sub Total 0.8 1.56 TOTAL 2.8 2.81 RE DEVELOPER POTENTIAL CAPACITY (MW) INSTALLED CAPACITY (MW) PROJECT TYPE PROJECT TYPE

1 Amley Natural Energy

Corporation 0.25

• Own Use

Mindanao

DEPARMENT OF ENERGY

Biogas Projects

1.1MW Waukeshau Gas Engine Generator Cavite Pig City Biogas from Animal Waste

DEPARMENT OF ENERGY

Biogas Projects

2x280kW Gas Engine Generator Biogas from Animal Waste

DEPARMENT OF ENERGY

Biogas from Municipal Solid Wastes Biogas from Distillery Wastes

RE DEVELOPER POTENTIAL CAPACITY (MW) INSTALLED CAPACITY (MW) PROJECT TYPE PROJECT TYPE

1

Bacavalley Energy, Inc.

• 4.00

Commercial Luzon

2

Montalban Methane Power Corporation

• 8.25

Commercial Luzon

3

Pangea Green Energy Philippines

• 1.20

Commercial Luzon TOTAL

• 13.65

RE DEVELOPER POTENTIAL CAPACITY INSTALLED CAPACITY PROJECT TYPE PROJECT TYPE

1

Green Future Innovations, Inc.

• 3 MW

Commercial Luzon

2

AseaGas Corporation 9,000 MT/yr Liquefied Biomethane Commercial (Transportatio n) Luzon

DEPARMENT OF ENERGY

Methane Recovery in Landfills

4 MW San Pedro Landfill Methane Recovery and Power Generation Plant

BIOGAS PROJECTS

DEPARMENT OF ENERGY

CONCLUSION

• The passage of RE Law increased the interests of

private sector in developing RE resources in the country

• Policies governing Renewable Energy development

have successfully attracted investments in the Philippines

• RE Law addresses the challenges and gaps such as

high upfront and technology costs, non- competitiveness, non-viable markets, inaccessible financial packages and social acceptability of developing RE resources

DEPARMENT OF ENERGY

Implementation Update

• For the Biomass, we have already issued 44

Biomass Renewable Energy Operating Contract and 25 certificate of registration for own-used with a installed capacity of 316 MW and ongoing installation of 366.80 as of April 2015 brought about by the different policy mechanisms

• We have issued 11 certificate of accreditation with

a capacity of 584.9 million liters per year for biodiesel and 8 Certificate of accreditation with a capacity of 222.12 million liters per year

DEPARMENT OF ENERGY

The Way Forward

• Implementation of the Feed-In-Tariff (FIT) and Net Metering Systems
• Finalization / Approval of Guidelines on other RE Policy Mechanisms (Renewable

Portfolio Standard (RPS), Green Energy Option, etc.)

• Establish Energy Investment Coordinating Center and Linkages with other

Government Regulatory Agencies

• NEDA PPP One-Stop-Shop (DTI / BOI / DOF / BIR, BOC)
• DENR / EMB, FMB, LMB, NSWMC
• NWRB / NCIP
• Resource Inventory and Establishment of RE Database
• Inventory of Biogas installations
• Capacity Building / Information, Education and Communication Campaigns
• Investment Missions / Business Meetings

DEPARMENT OF ENERGY

Thank You & Mabuhay!

www.doe.gov.ph