T E T C H I C R U Z - C A P E L L A NC E O , S U N A S I A E N E R G Y

P R E S I D E N T, P H I L I P P I N E S O L A R P O W E R A L L I A N C E

Finding Our Place in the Sun : Ways to Achieving the Solar Installation Target in the Philippines

Clean Energy Forum, ADB, June 17, 2015

Philippine Population2012 : 92 million2050 : 153 million

Gross Domestic Product2012- 2020 : 8.4 percent2020-2030 : 7.3 percent

Energy Consumptionin kg of oil equivalent per year2003 : 1,524 kg,oe2011 : 1,778 kg,oe

Cost of Electricity US$.26/kwh

Philippines Is Growing & Moving Fast..

Keeping the Mix : Government Initiatives At A Glance

2008 - Renewable Energy Law Enacted by Parliament;

2011 - Implementing Rules Passed; National Renewable Energy Board was created; National Renewable Energy Plan was Approved;

2012 - 50Mw Solar Target was Put in Place;2013 - Feed-In Tariff was Passed, Php9.68/kwh;

Net Metering was Approved;

2013 : The Sun Started to Come…

5kw, Bank of Philippine Island 38kw, Makati Medical Hospital

78kw International School 40kw,Toyota Showroom

2014 : Solar Rising!

40Mw, Solar Rooftop FiT Program, Cavite

22Mw, Ground-Mounted Solar FiT Program, Negros Occidental

The Present LandscapeIncreased Installation, 500Mw

Pending Application as of Mar 2015

Approved Service Contracts *as of Mar 2015

Approved Certificate of Commerciality**as of Mar 2015

Projects Awarded w/ Feed-In-Tariff*** as of Mar 2015

Projects Under Construction as of Mar 2015

208.0 1,293.00 330.5 106.0 118.0

25% 32% 35%

Service Contract – refers to an exclusive area assigned to RE Developer for exploration, development and utilization of solar resources in accordance to the provisions of the contract.

Certificate of Commerciality – refers to the declaration of the RE Developer , with government confirmation, that the Solar Energy Project is commercially viable based on legal considerations, as well as insofar technical and financial studies.Feed-In Tariff – refers to the government approved rate paid to Developer if power plant is 80 percent completed by March 2016. Php8.69/kwh

Sunshine on My Shoulders : Challenges to Commerciality

Tedious Permitting Steps Too Many Agencies (7) and Offices (11) Involved; (Environment, Housing, Local Govt, Indigenous People, Trade and Industry, Finance, Agrarian Reform and Agriculture.)

Long Conversion ProcessConverting Agriculture to Industry takes 9 to 12 months!

Rigorous Interconnection Approval Few SIS Preparer; Slow Data Sharing; Weak Grid outside Metro Manila.

High Risk to Equity Funders and LendersReluctance to Take Construction Risks; Reporting system on project development is opaque.

TOLEDO SOLAR PV PROJECT Creative Business Model

Project Characteristics

- Agri-Energy Project;

- Only 29% of the 113 hectares is used for solar panels and plant structures;

- Site Development preserves large grazing area;

- Grass variety and planting density are integrated in the infrastructure development plan;

- Animal population is maintained;

- Quality of livestock is upgraded;

- Height of the Mounting Structure Allows Small Animals to Roam;

- Lease Period Returns the Property to Original Land Use.

Toledo Solar PV ProjectAgriculture-Compatible Plant

Building Advantages & Benefits Shorter Permitting Cycle Allowing

Quicker Deployment of Solar PV Power Plants;

Optimized Land Use; More Investments for Agriculture; Productivity Increase & Higher Farm

Income; More Local Employment Opportunities; Improved Nutrition Among Young

Population; Increased Generating Capacity of Local

Grid; More Displacement of Carbon Emitted

by Agriculture & Fossil Based Power Plants;

A. Permitting Process1. More Sustainable Land Use;2. Parallel Review by Government Agencies;

B. Financing 3. Greater Transparency for Approved Projects; 4. Shorter Reporting Period – Monthly vs Quarterly;

Program Management : 5. Public & Private Sector Partnership for Near-Term Target Setting and Smooth Grid Integration to Maximize Solar Benefits to Consumers.

Letting the Sunshine In… Policy Prescriptions for FiT3

Contact Us… phsolar.alliance@gmail.com;tccapellan@gmail.com

“Someone is sitting in the shade today because someone planted a tree a long time ago…”