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RENEWABLE ENERGY DECADE REPORT 2008-2018 About the Cover EMPOWERED Celebrates Ten Years of the Renewable Energy Law in the Philippines

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RENEWABLE ENERGY DECADE REPORT 2008-2018 About the Cover EMPOWERED Celebrates Ten Years of the Renewable Energy Law in the Philippines RENEWABLE ENERGY DECADE REPORT RENEWABLE ENERGY DECADE REPORT 2008-2018 About the Cover EMPOWERED celebrates ten years of the Renewable Energy Law in the Philippines. The cover represents Philippine provinces hosting biomass, geothermal, solar, hydropower and ocean, and wind (BiGSHOW) renewable energy sources. BiGSHOW resources have provided more than just clean energy and have contributed to changing lives of communities: (From left) The wind turbines from the Burgos Wind Project at Ilocos Norte positively contributed to the municipality’s tourism industry. Solar power plants in Negros Occidental influenced residents in San Carlos City to adopt environmentally sustainable lifestyles and industries. Nueva Ecija’s iPower biomass power plant became a solution to one of San Jose City’s pressing environmental problems. Hydropower projects in remote areas like Ifugao and Palawan lighted houses and reduced the risks of other children being burned by a gasera the same way Palaw’an Tribe Chieftain, Balion David’s daughter experienced. Lastly, PGPC and APRI’s combined effort for geothermal energy in Laguna and Batangas provides schooling and livelihood opportunities for many. ©2019 Department of Energy All rights reserved. No part of this book may be reproduced in any form without written permission of the copyright owner. All data presented in this publication are as of December 2018 unless otherwise stated. First published in Taguig City, Philippines Renewable Energy Management Bureau | 2F PNOC Building V, Energy Center, Rizal Drive, 34th St, Taguig, 1632, Metro Manila, Philippines RENEWABLE ENERGY DECADE REPORT Introduction Energy fuels a country’s development as it remains central to its economic fiscal and non-fiscal incentives and policy mechanisms that acknowledge all activities. In the 1970s, the Philippines, with the rest of the world, experienced stakeholder interests. It has also given the consumers the power to choose an energy crisis brought by the oil embargo instituted by the Middle Eastern oil and use RE. producers. This caused prices for crude oil to surge. As a net oil importer, the A decade after its passage into law, the Philippine Electricity Market Corporation Philippine economy was heavily affected. (PEMC) cites that the RE industry has saved PhP 4.04 billion of energy costs Since then, the country’s persisting dependence on oil and fossil fuel imports for the Philippines. The RE industry has likewise reduced the country’s carbon continue to expose it to international oil price hikes and variable foreign emissions by 2.8 million tons as reported by the World Wildlife Fund for Nature exchange rates that greatly contributes to inflation and worse, energy scarcity. (WWF). The Philippines’ rising population results to an ever-increasing energy demand, In 2018, the RE sector has generated an all-time high of 23,326 Gigawatt while its archipelagic nature and geographic location makes it vulnerable to hours. The following year, 112 BiGSHOW power plant sites were up, running, natural events that endanger, if not nullify, development efforts towards an and contributing to the grid. From these continuous developments, the energy secure future. Taking all these into critical consideration sparked a National Renewable Energy Program’s (NREP 2011-2030) target of tripling renewed development perspective on energy in the Philippines. the RE’s installed capacity from 5,438 megawatt in 2010 to 15,304MW by The Department of Energy (DOE) was created in 1977 to provide the citizenry 2030 is gradually becoming a reality. with reliable, secure, and sustainable sources of energy to power the country’s This Decade Report briefs the reader of the moments and milestones that led growth and development. Corollary to the unstable market prices of crude oil, to the RE Law in the Philippines, while visually describing the mechanisms the Decree also entails that national efforts be directed at achieving energy that allow RE to thrive. It also features the positive impact of the RE industry security and independence. in some of the Philippine provinces that host BiGSHOW energy systems. The DOE rallied for a policy framework designed to empower the indigenous Lastly, this book discusses the current challenges for renewable energy in the Filipino household through the development of renewable energy sources country, as well as the industry’s ways forward. native to the country. Thus, Republic Act 9513 or the “Renewable Energy (RE) Through “EMPOWERED: Renewable Energy Decade Report”, the DOE Act of 2008” was passed—the first of its kind in Southeast Asia. The RE Law Renewable Energy Management Bureau (REMB), in partnership with Global allows for accessible, affordable, and environmentally sustainable energy Environment Facility (GEF) and the United Nations Development Programme sources in the form of Biomass, Geothermal, Solar, Hydropower and Ocean, (UNDP), enjoins everyone to celebrate the first 10 years of the RE Law and and Wind (BiGSHOW) energy systems. It has created an enabling environment prepare for the decades of RE that is yet to come. to encourage the private sector to invest and develop RE systems through Message from the DOE Secretary A decade is indeed a milestone to celebrate. Republic Act Our country’s RE milestones bear testament to our No. 9513, or the Renewable Energy (RE) Act of 2008 was commitment to attaining energy security, while caring for enacted to accelerate the exploration, development and the environment. In fact, the first decade of implementing utilization of RE sources, such as biomass, geothermal, the RE Law in the Philippines is part of our contribution solar, hydropower/ocean, and wind, or what we fondly to the global objective of the United Nations’ Sustainable call the BiGSHOW. Through the years, this law has proved Development Goal 7: Affordable and Clean Energy. to be instrumental in enriching some of our country’s Looking forward, the DOE will continue to work closely indigenous energy resources. with all its stakeholders to ensure the full and effective Let this coffee table book, “EMPOWERED: RENEWABLE implementation of the law to support President Rodrigo ENERGY DECADE REPORT”, take us on a stroll down R. Duterte’s Build, Build, Build program and his greater memory lane as we look back on the ten years of the vision of AmBisyon Natin 2040. RE Law’s implementation. Through its pages, let us Before I leave you to enjoy the contents of this book, I am revel in our achievements, celebrate various industry again REnewing my call for your full support – consumers, challenges that have been overcome, and anticipate industry partners, government officials, non-governmental the bright opportunities for the renewable energy organizations, and friends of the energy sector – let us landscape of the Philippines. take heed of the challenge for greater sustainability. More than sharing our insights on how this landmark Together, let us keep supporting the further development legislation aids us in our goal of providing secure, of renewable energy in the Philippines. stable, and resilient energy throughout the archipelago, Maraming salamat at mabuhay! we would like to impart countless stories on how RE projects have significantly altered thousands of Filipino lives for the better. ALFONSO G. CUSI DOESECRETARY Secretary Table of Contents Introduction Message from the DOE Secretary Chapter 01 08 Empowering Policies Drive Growth 10 Overview 13 The Renewable Energy Act of 2008 30 BiOMASS 14 Milestones of Renewable Energy Act Chapter 34 How does this RE work? 16 The Renewable Energy Policy Tools 36 Highlights and Achievements 23 What have been achieved so far? 38 Challenges 39 Ways Forward 02 40 Empowering Communities, Changing Lives 42 Biomass benefits beyond energy 44 Driven by passion 46 Wastes as riches 26 The BiGSHOW: 48 Economic empowerment Empowering Communities 50 GEOTHERMAL 54 How does this RE work? and Changing 56 Highlights and Achievements 58 Challenges 59 Ways Forward Lives 60 Empowering Communities, Changing Lives 63 Geothermal powerplants as neighbors 28 A sneak peek of the BiGSHOW 64 Positive social impact 66 Better chances at life 68 Communities as partners 71 Clean energy, clean environment Chapter 03 132 Empower the People, Generate a Bright Future 134 Becoming “Prosumer” 135 Improving Economic and Social Opportunities 136 Renewable Energy Sector in the Philippines 137 Balancing the Energy Trilemma 138 Progressing towards a Green Energy Future 139 Beyond the Policy 140 Renewable Energy Sector Ways Forward 142 Renewable Energy Roadmap 144 DOE Contributes to Achieving SDG 7 BiOMASS 72 SOLAR 112 WIND How does this RE work? 76 How does this RE work? 116 How does this RE work? Highlights and Achievements 78 Highlights and Achievements 118 Highlights and Achievements Definition of Terms Challenges 80 Challenges 120 Challenges Sources Cited Ways Forward 81 Ways Forward 121 Ways Forward Bibliography Empowering Communities, Changing Lives 82 Empowering Communities, Changing Lives 122 Empowering Communities, Changing Lives Biomass benefits beyond energy 84 Trailblazers 124 Clean energy has arrived Acknowledgements Driven by passion 85 Locally-driven sustainability 126 Reaping the benefits Wastes as riches 87 Productive Uses of Renewable Energy 129 Providing more than just energy Economic empowerment 88 HYDRO AND OCEAN 92 How does this RE work? 94 Highlights and Achievements 96 Challenges 97 Ways Forward 98 Empowering Communities, Changing Lives 100 Saving the rice terraces through hydropower 102 Rural electrification
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