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

omass / ofuels

eothermal

olar 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 of 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 of 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

201120302015 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

of 10 MW is reached by 2030

Target additional

biomass capacity of 264.7 MW is reached

Promulgation of

remaining policy mechanisms, rules under the RE Law

completed by end-2011

1st Ocean

Energy facility operational

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

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

• 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

of FIT

200

Biomass 0.153

0.5% after 2 years from effectivity

of 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

of FIT

250

Ocean Deferred 10

DEPARMENT OF ENERGY

Biogas Technology Assessment in the Philippines

General Objective 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