Status of Wind Power Development

in the Philippines
and Drafting of the Philippines Wind
Power Development Roadmap
– Next Steps
Vincent S. Pérez
Chairman, Alternergy
Chairman, Merritt Partners
Vice Chairman, National Renewable Energy Board
Quantum Leap in Wind Power in Asia: Structured Consultation
Asia Clean Energy Forum – Pre-event Workshop
Asian Development Bank, 21 June 2010

The views expressed in this presentation are those of the presenter and do not necessarily represent those of the Asian Development Bank.
 Existing Wind Power Projects

1.5MW wind-diesel hybrid project of

33MW wind farm project of Northwind National Power Corp., Mt. Samhao,
Power Development Corp., Bangui, Ilocos Mahatao, Batan Island, Batanes
Norte

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 Milestones in Wind Power
Development, Philippines
Renewable Commercial Commercial Passage of the Issuance of the MOA between
Energy Policy operation of Operation of Renewable Implementing DOE and BOI
Framework 1.5MW Basco the 25MW Energy Act Rules and
wind power Bangui Wind Regulations of Drafting of FIT
project of Farm of Additional the RE Act Rules
National Power Northwind 8MW in
Corp. Power Northwind’s Award of Award of
Development capacity Renewable Renewable
Wind Corp. Energy Service Energy Service
Investment Kit Contracts Contracts

2002 2004 2005 2008 2009 2010

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 750 MW of Wind Power Potential
Philippines Wind Resource Atlas

• Existing Capacity: 33 MW

• Currently, the biggest wind power

producer in SE Asia

• Wind Regions:
• Batanes and Babuyan Island
• Northwest tip of Luzon (Ilocos Norte)
• Higher interior terrains of Luzon, Mindoro,
Samar, Leyte, Panay, Negros, Cebu, Palawan,
Eastern Mindanao
• East-facing coastal locations from N. Luzon
southward to Samar
• Wind corridor between Luzon and Mindoro
• Between Mindoro and Panay

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Source: DOE – NREL Study
 Wind Power Capacity Targets
Philippine Energy Plan Update 2009-2030

903 MW
1000
900
800
700
600
500
400
300 199 MW
200
33 MW
100
0
2010 2015 2020

Source: DOE

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 Proposed Philippine
Wind Power Roadmap
Regulatory
Issues
How do we ensure the sustainability of the
policies of the RE Act to be attractive enough to
encourage investments?
What additional policies should government
adopt to increase off-take from wind power?
How do we incentivize NGCP to invest in
extending additional transmission lines to wind
corridors?
Proposed Actions
Establish attractive initial Feed in Tariff (FiT)
for onshore wind power projects
Implementation of Rules on Renewable
Portfolio Standards, Net Metering, and
Green Energy Option
Assist NGCP in long term transmission
development planning to connect wind power
Promulgate a special transmission incentive for
NGCP to construct transmission assets to inter-
connect wind power projects to the grid
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 Proposed Philippine
Wind Power Roadmap
Off-grid and Micro
Issues Proposed Actions
How would the government promote micro Implement Net Metering for micro wind
wind power use for household use? turbines for residential installation

How would the government promote wind Implement FiT Rules for Off Grid Areas and
power use for Off Grid Areas? establish appropriate payment and settlement
mechanism for Off Grid Areas

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 Proposed Philippine
Wind Power Roadmap
Technical
Issues Proposed Actions
How do we integrate wind power projects in the Inclusion in the Third TDP planning period for
Transmission and Distribution Development 2010-2015; active involvement of private sector
Plan? in the planning process

How do we strengthen the Philippine electricity Include wind transmission issues in Grid Code,
grid system to allow penetration of intermittent assist NGCP in determining maximum allowable
power supply? wind penetration level

How do we facilitate easier interconnection of Standardize a template interconnection

wind farms into the grid? agreement between NGCP and wind developers

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 Proposed Philippine
Wind Power Roadmap
Technology Transfer
Issues Proposed Actions
How do we develop local manufacturing Encourage investments in wind turbine
capability for wind turbine components? component domestic manufacturing, such as
steel towers and nacelles

How do we promote local expertise on wind Enhance educational system in the tertiary level
power operation and maintenance? to train mechanical and electrical engineers on
wind farm O & M

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 Proposed Philippine
Wind Power Roadmap
Financing
Issues Proposed Actions
How do we encourage banks to be aggressive in Training of local project finance lenders on
extending financing to wind power projects? lending to wind power projects

How to facilitate increased access to financing Increase awareness and strengthen capacity of
by existing wind power projects? local lending institutions to open credit facilities
and increase access to funds for wind projects

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 Proposed Philippine
Wind Power Roadmap
Institutional Capacity Building
Issues
Are the current institutions capable of
supporting and addressing the requirements of
a highly developed wind energy sector?
What simplified measure should be introduced
to facilitate FiT payment to wind farm
developers?
Proposed Actions
A program that would strengthen and develop
capacity building for the following agencies
should be implemented: DOE, ERC, WESM,
Transco, NGCP, ECs/DUs, LGUs and other
relevant government agencies, banks,
universities, private developers
Draft a template of Renewable Energy Payment
Agreement (REPA) between NGCP and wind
farm developers
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 Proposed Philippine
Wind Power Roadmap
Resource Assessment
Issues Proposed Actions
What is the Philippines actual wind resource Conduct an updated wind resource mapping to
potential and where are the most viable wind come up with a Philippine Wind Resource Atlas
sites located? including onshore and offshore potential

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 Proposed Philippine
Wind Power Roadmap
BY WHOM? WHEN?
Engaging the stakeholders actively Setting working timelines

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Possible Technical Assistance from ADB
• Upgrade of the Philippine Grid Code
• Training of project finance lenders
• Awareness campaign and capacity building of
local lending institutions
• Formulation of the Renewable Energy Payment
Agreement (REPA) between NGCP and wind
farm developers
• Conduct an updated wind resource mapping
• Net metering for micro wind turbines

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 Thank you

Vincent S. Pérez
Chairman, Alternergy
Chairman, Merritt Partners
Vice Chairman, National Renewable Energy Board
Quantum Leap in Wind Power in Asia: Structured Consultation
Asia Clean Energy Forum – Pre-event Workshop
Asian Development Bank, 21 June 2010