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TA 7781-PHI Rural Community-Based Renewable Energy Development in Mindanao

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TA 7781-PHI Rural Community-Based Renewable Energy Development in Mindanao Technical Assistance Consultant’s Report Project Number: 44132 December 2015 Republic of the Philippines: Rural Community-Based Renewable Energy Development in Mindanao (Financed by the Asian Clean Energy Fund under the Clean Energy Financing Partnership Facility) Prepared by Holger Ludwig Lahmeyer International GmbH Bad Vilbel, Germany For National Electrification Administration (NEA) This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design. FINAL REPORT TA-7781 (PHI): Rural Community-Based Renewable Energy Development in Mindanao – 07 Consulting Firm (44132-012) Micro hydropower plant Dalupan, Davao Del Sur, at inauguration day, 29 July 2015 Asian Development Bank Country: Philippines Client: Asian Development Bank (ADB) 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines Contact: Mr. Choon-Sik Jung Energy Specialist, Energy Division Southeast Asia Department (SEEN) Consultant: Lahmeyer International GmbH Friedberger Str. 173 61118 Bad Vilbel Germany Authors: Holger Ludwig Renewable Energy Specialist / Team Leader [email protected] Contact: Dr. Alexis Bonneschky Head, Economics and Energy Efficiency Department, Lahmeyer International GmbH [email protected] +49 6101 55 1124 Date: 25 September 2015 Final Report Page ii Table of Contents EXECUTIVE SUMMARY .......................................................................................................................... 1 1 PROJECT OBJECTIVES AND OVERVIEW OF TASKS ........................................................ 7 1.1 Introduction ........................................................................................................................ 7 1.2 Background ......................................................................................................................... 8 1.3 Objective ............................................................................................................................. 8 1.4 Implementation................................................................................................................... 8 2 CONSTRUCTION AND INSTALLATION OF DEMONSTRATION RENEWABLE ENERGY (MHPP) SYSTEMS ......................................................................................................... 9 2.1 Procurement ....................................................................................................................... 9 2.1.1 Procurement for the Installation Works of MHPPs ..................................................... 9 2.1.2 Dalupan MHPP Procurement ...................................................................................... 9 2.1.3 Getsemane and Sto. Nino MHPPs Procurement ....................................................... 10 2.2 Construction / Installation ................................................................................................ 11 2.2.1 Construction and Installation of Dalupan MHPP ....................................................... 11 2.2.2 Construction and Installation of Getsemane MHPP.................................................. 12 2.3 Technical Capacity Building of CBO's Members for O & M Services ................................. 12 2.4 Identification of Local Sources for the Supply of Spare Parts ........................................... 13 3 PROVISION OF LEGAL FRAMEWORK AND PERMITS FOR OPERATION OF MHPPS .... 14 3.1 Renewable Energy Service Contract Application .............................................................. 14 3.1.1 Application Process ................................................................................................... 14 3.1.2 Dalupan MHPP Project, Municipality of Don Marcelino ........................................... 16 3.1.3 Getsemane MHPP Project, City of Bayugan .............................................................. 17 3.1.4 Sto. Niño MHPP Project, City of Bayugan .................................................................. 19 3.1.5 Conversion of the Pre-Development RESC Application to Commercial RESC ........... 19 3.2 Water Permit Application (WPA) for Electric Power Generation ..................................... 20 3.2.1 Documentary Requirements ..................................................................................... 20 Final Report Page iii 3.2.2 Application Process ................................................................................................... 20 3.2.3 Current Tasks and Activities ...................................................................................... 24 3.3 Net-Metering Contract ...................................................................................................... 25 3.3.1 Application Process ................................................................................................... 26 3.3.2 Recent Tasks and Activities ....................................................................................... 32 3.4 Certificate of Non-Coverage .............................................................................................. 33 3.4.1 CNC Application Process and Screening .................................................................... 34 4 FINANCIAL AND ECONOMIC ANALYSES OF THE RENEWABLE ENERGY FACILITIES ... 35 4.1 MHPP Dalupan – Business Model ..................................................................................... 35 4.1.1 Financial Evaluation ................................................................................................... 35 4.1.2 Financial Evaluation Results ...................................................................................... 38 4.1.3 Sensitivity Evaluation Results .................................................................................... 39 4.1.4 Conclusion ................................................................................................................. 41 4.2 MHPP Getsemane – Business Model ................................................................................ 41 4.2.1 Financial Evaluation ................................................................................................... 41 4.2.2 Financial Evaluation Results ...................................................................................... 44 4.2.3 Sensitivity Evaluation Results .................................................................................... 46 4.2.4 Conclusion ................................................................................................................. 47 4.3 Multipurpose (Corn) Mill – Business Model for RE appliances ......................................... 47 5 ESTABLISHMENT OF COMMUNITY BASED ORGANIZATIONS (CBO) .......................... 48 5.1 Establishment of Community Based Organizations (CBO) ................................................ 48 5.2 Capacity Building for CBO ................................................................................................. 51 5.2.1 Training and advisory service for CBO management ................................................ 51 5.2.2 Financial Capacity Building of CBO members ............................................................ 52 5.2.3 Financial Capacity Building of CBO Members for Fund Management and Livelihood / Enterprise Development .................................................................................... 52 Final Report Page iv 5.2.4 Introduction of microfinance institutions or credit facilities to support the capital requirements of the new technology ................................................................ 53 6 ESTABLISHMENT AND INITIAL OPERATION AND MANAGEMENT OF THE REVOLVING FUNDS FOR LIVELIHOOD ENHANCEMENT ................................................................. 56 6.1 Background ....................................................................................................................... 56 6.2 Pilot Testing ....................................................................................................................... 56 6.2.1 Approach ................................................................................................................... 56 6.2.2 Implementation of Pilot-Testing of the Revolving Funds .......................................... 56 6.2.3 Profiling of Potential Beneficiaries and Livelihoods for Pilot-Testing ....................... 61 6.2.4 Community Discussions of Approved Policies for Revolving Fund Management ..... 62 6.2.5 Pilot Testing Results .................................................................................................. 63 6.3 Revolving Fund Forecast ................................................................................................... 65 6.4 Training and Advisory Service for Revolving Fund Management ..................................... 71 6.5 Operation of Revolving Fund after Project Implementation ............................................ 72 7 EMPHA“I“ ON WOMEN’“ ROLE AND PARTICIPATION IN THE PROJECT .................... 73 8 KNOWLEDGE DISSEMINATION AND PREPARATORY WORK FOR SIMILAR RE PROJECTS REPLICATION AND SCALING UP ................................................................................. 75 8.1 Replicable RE Projects ......................................................................................................
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