RENEWABLE ENERGY

OUTLOOK

Marissa P. Cerezo
OIC-Assistant Director
Renewable Energy Management Bureau
 ENERGY SECTOR
AGENDA
GOP Directive
Ensure energy security
Ensuring the
2008 Philippine
Energy Summit best energy
choices for a Pursue effective
PEP Consultations implementation of energy
better quality sector reforms
Sustainable
Development
of life
Framework Implement social
mobilization and cross-
International sector monitoring
Frameworks on
Energy Cooperation mechanism
Where are we now?
2008
Increased self-sufficiency to 58%
- RE accounts for 43%
Transport sector remains the major user
of oil accounting for 67%
Increased self-sufficiency in the power
generation mix to 67%
- natural gas accounts for 32%
- RE accounts for 34%
- Total installed capacity stood at 15,681 MW with
dependable capacity of about 13,049 MW
Electrification Level at 98.03% (as of June 2009)
NPC Privatization level at 57.0% ( 73.26% as of June 2009)
Philippine Renewable Energy Plan

Increase RE-based capacity by 100% within the next 10

years (2009-2020)
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 1,070 MW)
- Be the number one wind energy producer
in Southeast Asia (additional 515 MW)
- Double hydro capacity by 2018
(Additional 3,400 MW)
- Expand contribution of:
- biomass 200 MW
- solar 30 MW
- ocean energy 120 MW
RA 9367:
Biofuels Act of 2006
Provide fiscal incentives and
mandate the use of biofuel-
blended gasoline and diesel
fuels
BIODIESEL
¾ 2008 consumption of 91 million liters (CME)
¾ 1% biodiesel blend sold in all gasoline
stations
¾ 2% biodiesel blend by Feb. 6, 2009
BIOETHANOL
¾ Actual production of 611,235 liters
¾ Start of 5% by total volume mandate on Feb.
6, 2009
 Biofuels Implementation Plan
2004 2007 2009 2011

Biofuels Law :
Use of B1 in mandatory use of
Biofuels Law: Biofuels Law:
Government biofuels:
2% biodiesel >2% biodiesel
Vehicles To Start at
5% bioethanol 10% bioethanol
(M.C. 55) 1% biodiesel
(B1)

RA 9367 Effectivity
BIOFUELS REQUIREMENTS
BIODIESEL BIOETHANOL
Minimum Blends:
Minimum Blends: @ 5% (2009) = 208.11 M liters
@ 1% (2007) = 62.10 M liters @ 5% (2010) = 218.93 M liters
@ 2% (2009) = 133.68 M liters @ 10% (2011) = 460.63 M liters
@ 10% (2014) = 536.29 M liters
@ 2% (2010) = 138.70 M liters
@ 2% (2014) = 160.70 M liters
Bioethanol Supply:
2 Accredited Producers with annual
Biodiesel Supply: total capacity of 39 million liters
12 Accredited Producers with 2 production facilities to be on-
stream by 2010 and 2011 with
annual total capacity of additional capacity of 68 million
395.62 million liters liters/year
Additional capacities totaling to
about 100 million liters/year by 2012
Feedstocks used:
Coconut oil (current) Feedstocks used:
Jatropha ( under study) Sugar Cane, Molasses (current)
Sweet sorghum, cassava ( under
study)
Incentives under the Biofuels Law
‰ Tax incentives
‰ Specific Tax per liter of volume capacity, is zero
(0) for biofuels component;
‰ Water effluents from the production will not be
covered by RA9275 or Clean Water act.
‰ High priority from Government Financial
Institution to entities that will engage in
production, storage, handling and transport of
biofuel and biofuel feedstock, including the
blending with petroleum as certified by DOE.
 Biofuels Act of 2006: Implementation Update
‰ Ensured the availability of E10 (10% bioethanol) in gasoline stations
and B2 in all diesel fuels
‰ Prepared the National Biofuels Program and same was approved by
the National Biofuels Board on September 19, 2008
‰ Published JAO No. 2008-1, Series of 2008 providing the “Guidelines
Governing the Biofuel Feedstocks Production, and Biofuels and
Biofuel Blends Production, Distribution and Sale under Republic
Act No. 9367” which took effect on March 20, 2009
‰ Issued Department Circular No. 2009-02-0002 “Mandating a
Minimum of 2% Blend of Biodiesel in all Diesel and 5% Bioethanol
in Annual Total Volume of Gasoline”effective May 6, 2009
‰ Issuance of Memorandum Circular No. 184 “Directing all
Departments, Bureaus, Offices and Instrumentalities of the
Government, Including Government-Owned and Controlled
Corporations to Use Ten Percent (10%) by Volume Bioethanol in
their Gasoline Requirements” on October 26, 2009
‰ Conducted IEC campaigns
RA 9513: Renewable
Energy Act of 2008

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
Increase the utilization of renewable energy by
providing fiscal and non fiscal incentives;
 RA9513: FISCAL INCENTIVES
RE SUPPLIERS, FABRICATORS,
RE DEVELOPERS (NEW & EXISTING)
MANUFACTURERS
7 year Income Tax Holiday 7 year Income Tax Holiday (ITH)
10 year Duty-free Importation of RE Machinery, Tax and Duty-free Importation of
Equipment and Materials Components, Parts and Materials
1.5% Special Realty Tax Rates on Equipment
and Machineries
7 year Net Operating Loss Carry Over
10 % Corporate Tax Rate after ITH
Accelerated Depreciation
Zero Percent Value-Added Tax Rate Zero-rated value added tax transactions
Cash Incentives of Renewable Energy
Developers for Missionary Electrification
Tax Exemption of Carbon Credits
100% Tax Credit on Domestic Capital 100% Tax Credit on Domestic Capital
Equipment and Services Components, Parts and Materials
Exemption from the Universal Charge
Payment of Transmission Charge
Hybrid and Cogeneration Systems Financial Assistance program
 FISCAL INCENTIVES
Incentives for Farmers Engaged in the
Plantation of Biomass Resources
All individuals and entities engaged in the plantation of
crops and trees used as biomass resources such as but not
limited to jatropha, coconut, and sugarcane, as certified
by the Department of Energy;

Within ten (10) years from the effectivity of the Act,

duty-free importation and be exempted from Value-
Added Tax (VAT) on all types of agricultural inputs,
equipment and machinery;
 FISCAL INCENTIVES
Tax Rebate for Purchase of RE Components
To encourage the adoption of RE technologies,
the DOF, in consultation with DOST, DOE, and
DTI, shall provide rebates for all or part of the
tax paid for the purchase of RE equipment for
residential, industrial, or community use. The
DOF shall also prescribe the appropriate period
for granting the tax rebates;
 NON- FISCAL INCENTIVES:
RE POLICY MECHANISMS

Renewable Portfolio Standard (RPS)

ƒ refers to a market-based policy that
requires electricity suppliers to source an
agreed portion of their energy supply
from eligible RE resources;
„ Feed-In Tariff System
• refers to price premium for the wind, solar,
ocean, run-of-river hydropower and biomass
generated electricity;
 NON- FISCAL INCENTIVES:
RE POLICY MECHANISMS
Green Energy Option
DOE to establish a program which provides the
end-users the option to choose RE resources as
their sources of energy;

„ Net Metering for Renewable Energy

• refers to a system, appropriate for distributed
generation, in which a distribution grid user has
a two-way connection to the grid and is only
charged for his net electricity consumption and
is credited for any overall contribution to the
electricity grid;
 RE RESOURCE
TARGET CAPACITY

EXISTING
RESOURCE CAPACITY TARGET TOTAL
in year 2008 capacity in 2020
(MW)

GEOTHERMAL 2,027 1,070 3,097

HYDRO 3,367 3,400 6,767
WIND 33 515 548
SOLAR 5 30 35
BIOMASS 68 200 268
OCEAN 0 120 120
TOTAL 5,500 5,355 10,835
 SUMMARY OF RE
RESOURCE POTENTIAL

Geothermal Resources – 1,200 MW

Hydropower – 10,500 MW
Wind resources – 76,600 MW
Micro-Hydro – untapped vast potential
Solar energy – untapped vast potential as a
tropical country
Ocean energy – 170,000 MW
Biomass (bagasse) total potential of 235.7
MW
Status of RE Registration /
Accreditation
 PHILIPPINE GEOTHERMAL
PRODUCING FIELDS
Legend 344 MW Tiwi, Albay
Advance Exploration
Producing Fields
Potential Areas LUZON
458.53 MW
MakBan, Laguna
49.38 MW
Northern, Negros
151.5 MW
Bacman, Albay/Sorsogon

722.68 MW
Kananga/Ormoc, Leyte
VISAYAS

192.5 MW
Palinpinon, Southern Negros 108.48 MW
Mt. Apo, Kidapawan, Cotabato

MINDANAO

ent/10-26-2007
Geothermal Energy Development

ƒ Installed capacity of 2,027.1

MW
ƒ World’s largest user for
power generation (25% of
power mix)
ƒ Potential of 1,200 MW more
Biomass
Biomass resources include:
Wood and woodwastes
Sugarcane residues (bagasse
and cane trash)
Coconut residues (shells,
husks and fronds)
Rice residues (husks, straws)
Municipal Solid Wastes
Animal Wastes, etc.
Wind Energy Resources
Philippine Wind Energy Potential Map
6 Identified Regions
Batanes and Babuyan Islands
Northwestern Luzon
Higher interior terrain of Luzon,
Mindoro, Samar, Leyte, Panay, Negros,
Cebu, Palawan, Eastern Mindanao
Well-exposed east-facing coastal
locations from Northern Luzon
southward to Samar
The wind corridors between Luzon and
Mindoro (including Lubang Island)
Between Mindoro and Panay (including
the Semirara & Cuyo Island)

A 2003 WWF study identified

potential sites with power density
of at least 500 W/m2 and
transmission line cost of not over
25% of levelized cost of combined
generation and transmission costs.
Philippine total potential is about
7,400 MW covering 1,038 wind sites
REPF
REPF ACCOMPLISHMENTS
ACCOMPLISHMENTS

Geothermal Projects:
Awarded 18 Service Contracts
- 8 Converted from existing projects
- 10 new projects
15 Pending Applications

Biomass Projects:
Awarded 9 Operating Contracts
16 Registered for own-use
13 under evaluation
Wind Power Projects:
Awarded 39 Service Contracts
36 Pending Application
Philippine National Oil Co. –
Renewable Energy Corp.
17.8 MW SICOPONG HYDROPOWER PROJECT
REPF
REPF ACCOMPLISHMENTS
ACCOMPLISHMENTS
Hydropower Projects:
Awarded 101 Hydropower Service
Contracts (5 Development/76 Pre-Dev)
• 25 Pending Pre-Development RE Contract

Existing: (3,312.21MW installed capacity)

21 Large-Hydro:3,220.10MW
55 Micro-Hydro:91.03 MW
135 Micro-Hydro: 1.08MW
On-going Projects:
Under Construction – 8 projects:16MW
Development Stage -22 projects:86.91MW
Ocean Power Projects (Pre-Dev):
Awarded 3 Service Contracts
2 Applications under process
 Solar Energy
Resources
ƒ Nationwide potential
ƒ 5 kWh/m2/day
potential average;
ƒ 92 Brgys. for BEP 09

ƒ 1 MW Existing Solar
Power Plant hybrid to
7 MW hydro
REPF
REPF ACCOMPLISHMENTS
ACCOMPLISHMENTS
Solar Power Projects:
Existing Solar Power Plant:
1MW Solar Power Plant hybrid
to 7MW hydropower
Pending Applications:
On process 20 MW on-grid PV power plant, Misamis Oriental
On process fifty (50) MW, wind-solar farm, Ilocos Norte
On process one (1) MW on-grid PV power plant, Aurora

Thirteen (13) pending application for

accreditation on RE Equipment
(Commercialization)
POLICY IMPLEMENTATION

Establishment of the Renewable Energy

Management Bureau (REMB)
• Institutionalized on 14 July 2009
• Organized an Interim Negotiating Panel for RE
Contracts on 09 September 2009
• TWG for RE policy Roadmap
• Steering Committee on the Establishment of RE
market
Creation of National Renewable Energy Board
(NREB)
• Formed sub-committees and working groups to
facilitate formulation of RE policy mechanisms
WAY
WAY FORWARD
FORWARD

Finalization of RE Policy Mechanism by

June 2010
„ RPS
„ Net metering
„ Feed-in Tariff
„ REM/REG
„ Green Energy Option Program
Establish linkages
Resource Inventory/Establish RE Data Base
Capacity Building/IEC Campaign
Investment missions
International cooperations
Thank You!
www.doe.gov.ph