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 transforms lives 104 Big project, big opportunities for the people 105 Greater economic oppportunities 106 Support programs with a heart 109 Environment for learning 110 Fostering Filipino values Chapter 01
Empowering Policies Drive Growth
Overview The Philippine Geothermal Power Corporation, Inc. (PGPC) is operating the Tiwi The Philippines has already been increased to 890 MW, propelling the steam fields in the province of Albay and the using hydropower as its indigenous Philippines to be the second largest Mak-Ban steam fields in the provinces of energy source as early as 1953, geothermal producer in the world. Batangas and Laguna. The two steam fields with the run-of-river Maria Cristina The Mak-Ban, Tiwi, and Palinpinon Hydroelectric Power Plant (now geothermal plants supplied about are a result of the success of the partnership known as Agus VI) in Iligan City, 20% of the country’s electricity needs of PGPC's predecessor and the National Lanao del Norte, generating 200 then. More hydroelectric power plants Power Corporation that began in 1971. MW. Four years after, the 75 MW were also commissioned during this Ambuklao Hydroelectric Power Plant time. in Bokod, Benguet and the 1.6 MW Agusan 2 Hydroelectric Power Plant The progressive developments in Manolo Fortich, Bukidnon were in the power sector signaled the commissioned. beginning of the wave of economic reforms that occurred in the 1990s. In the 1970s however, an In 1992, the Department of Energy unprecedented oil price shock (DOE) was created through Republic affected many developing nations, Act 7638. The DOE was to ensure a including the Philippines. Being a continuous, adequate, and economic net energy importing country, the supply of energy with the end in Philippines was highly dependent view of ultimately achieving self- on imported fossil fuel and was hit reliance in the country’s energy hard by energy price volatility in the requirements through the integrated international markets. This oil price and intensive exploration, production, crisis drove the Philippine Government management, and development to explore other indigenous energy of the country’s indigenous energy resources, in addition to hydropower, resources. Further, in 2001, the to stay afloat in the global economy. To Electric Power Industry Reform Act address this, the Philippine National (EPIRA) restructured the power Oil Company (PNOC) established the industry as it abolished monopoly Energy Development Corporation and allowed competition under the (EDC) to explore, delineate, and power sector. The EPIRA also helped develop indigenous resources in the promote the utilization of indigenous country in 1976. and new renewable energy (RE) resources and accelerate the total In 1979, the first geothermal plant electrification of the Philippines. produced 2.5 kW in Barangay Cale, All these reforms together helped Tiwi, Albay. Five years later, the augment the country’s generation installed capacity of the geothermal capacity.
10 Empowered: Renewable Energy Decade Report 2008-2018 Overview There is a close correlation between Gross Domestic Product (GDP) and energy consumption growth. In 1997, the Asian Financial Crisis hit and the country saw a much lower energy-to-GDP elasticity. There was a slowdown in industrial production and development, and thus largely influenced a negative growth in petroleum consumption. Most of the growth in electricity generation was consumptive from the residential areas rather than productive industrial sectors. In 1989, however, the Philippines experienced power outages as the country became overdependent on diesel-fired gas turbines, which resulted to very high petroleum consumption relative to GDP growth.
GDP Quarterly Growth Rate (in per cent, 1985 based) 1981-2010
20.0
The Philippines has long 15.0 been using hydropower as an RE resource, even before 10.0 geothermal energy was utilized.
5.0
In December 2008, the Republic Act 9513 0.0 or the ‘Renewable Energy Act of 2008’ was codified to affirm the government’s commitment to accelerate the utilization (5.0)
of RE resources in the country. Its 1981:01 1982:01 1983:01 1984:01 1985:01 1986:01 1987:01 1988:01 1989:01 1990:01 1991:01 1992:01 1993:01 1994:01 1995:01 1996:01 1997:01 1998:01 1999:01 2000:01 2001:01 2002:01 2003:01 2004:01 2005:01 2006:01 2007:01 2008:01 2009:01 2010:01 goal was to effectively reduce harmful (10.0) emissions and achieve economic growth by encouraging investments while protecting the people’s health and the environment. (15.0) RE is an essential part of the country’s low emission development strategy and is vital to addressing challenges of energy (20.0) sustainability, security, and equity. Source: Macroeconomic Policy Regimes in the Philippines (2013) by Cayetano Paredanga, Jr. for Bangko Sentral ng Pilipinas
Empowered: Renewable Energy Decade Report 2008-2018 11 San Jose City I Power Corporation in Tulat Road, San Jose City, Nueva Ecija operates two 12 MW rice husk-fired biomass power plants.
12 Empowered: Renewable Energy Decade Report 2008-2018 The Renewable Energy Act of 2008 The need to be energy independent, coupled with the goal of reducing carbon emissions in the atmosphere, pushed the creation of the RE Act of 2008 (RA 9513). One of the directives of RA 9513 is to accelerate the exploration and development of RE sources, such as biomass, geothermal, solar, hydropower, ocean energy sources, and wind including hybrid systems.
OBJECTIVES:
Achieve energy Reduce Minimize Effectively prevent Balance the goals self reliance the country’s the country’s or reduce harmful of economic dependence exposure to price emissions growth and on fossil fuels fluctuations development in the international with the protection markets of health and the environment
Empowered: Renewable Energy Decade Report 2008-2018 13 Milestones of Renewable Energy Act The RA 9513 milestones show how the RE Law progressed over time and arrived at its current standing today.
- ERC’s approval of FIT rates - Energy Regulatory Commission (ERC) issued Feed-in-Tariff (FIT) Rules - Groundbreaking of San Jose City I Biomass - Start of Detailed Resource Assessment of Selected Low Enthalpy Powerplant in Nueva Ecija Geothermal Areas - 19 MW additional capacity installations for Biomass - 35.90 MW additional capacity installations for Biomass - Enactment of the RA 9513: - 11.80 MW additional capacity installations Renewable Energy Act of 2008 - 57.30 MW additional capacity installations for Hydropower for Hydropower
2009 2011 2013 2008 2010 2012
- Issued Implementing Rules and Regulations - Approval of the National Renewable Energy Program (NREP) - DOE issued Guidelines for the Selection (IRR), Administrative Frameworks for Awarding 2011 – 2030 Process of RE Projects under FIT System and RE Service Contracts and Accreditation Award of Certificate for FIT Eligibility under - Capacity Building to Remove Barriers to RE Development in the Department Circular No. 2013-05-0009 - Open and Competitive Selection Process (OCSP) Philippines (CBRED) for Geothermal Areas 2009 - ERC issued FIT Allowance (FIT-ALL) Payment - Solong Hydroelectric Power Plant in San Fernando, Romblon and Collection Guidelines - 37.33 MW additional capacity installations for - Linao-Cawayan (Lower Cascade) Hydroelectric Power Plant in Biomass - Biomass Resource Assessment in the Baco, Oriental Mindoro Philippines (BRAP) - 10.40 MW additional capacity installations for - 19 MW additional capacity installations for Biomass Hydropower - Implementation of Net-Metering program - 4.20 MW additional capacity installations for Hydropower - 0.876 MW additional capacity installations - Approval of the COCOC for Maibarara 1 Geothermal Power Plant for Biomass
LEGEND: Progress of the Feed-in-Tariff (FIT) System Detailed Resource Assessment of Selected Low Enthalpy Geothermal Area Development of the San Carlos Solar Power Projects (SACASOL I-A, I-B, I-C/D) Development of the San Jose City I and II Biomass Powerplants Development of the Maibarara Geothermal Powerplants I and II
14 Empowered: Renewable Energy Decade Report 2008-2018 - Maibarara Geothermal Powerplant II in Laguna - ERC approved FIT-All Rates - Maibarara Geothermal - DC 2018-08-0024: Renewable Portfolio Standards 0.0406 Php/kWh (2014-2015) Powerplant I in Batangas on Off-Grid Areas - 1st synchronization with NGCP - 12 MW additional capacity - Burgos Solar Power Project - Passage of Department Circular on the rules and Grid and start of commercial installations for Biomass Phase II in Ilocos Norte guidelines on Green Energy Option Program operation of San Jose City I - 50 MW additional capacity Biomass Power Pant (as per - 40.80 MW additional - Public consultation for the passage of guidelines on RE installations for Geothermal DOE COE-FIT No. B2014-11- capacity installations Safety, Health and Environment Rules and Regulation 005) - 22 MW additional capacity for Biomass Code of Practice installations for Solar - Completed project construction - 735.72 MW additional - 41.74 MW additional capacity installations for Biomass capacity installations of San Jose City I Biomass - 13.65 MW additional capacity - 12 MW additional capacity installations for Geothermal Powerplant in Nueva Ecija installations for Hydropower for Solar - 3.20 MW additional capacity installations for Solar - San Carlos Solar Power Project - 303.90 MW additional capacity - 10.45 MW additional (SACASOL I-A and I-B) in installations for Wind capacity installations - 78.92 MW additional capacity installations for Hydropower Negros Occidental for Geothermal
2015 2017 2014 2016 2018
- Effectiveness of newly approved FIT-All Rates - Biogas Technology Assessment in the Philippines - 1st synchronization with - Start of Philippine Geothermal - ERC issued new FIT Rates for Solar - 124.50 MW additional capacity installations NGCP Grid and start of Resource Inventory and (March 2015) and Wind for Biomass commercial operation Assessment “PGRIA” of San Jose City II Biomass (until 2021) - Completed Detailed Resource Assessment of - 10 MW additional capacity installations Power Pant - 18.12 MW additional capacity Selected Low Enthalpy Geothermal Areas for Geothermal (as per DOE COE-FIT installations for Biomass - Groundbreaking of San Jose City II - 142.47 MW additional capacity installations No. B2017-10-019) - 25.20 MW additional capacity Biomass Powerplant in Nueva Ecija for Solar - Completed project installations for Solar - San Carlos Solar Power Project - 17.82 MW additional capacity installations construction of San Jose City (SACASOL I-C/D) in Negros Occidental for Hydropower II Biomass Powerplant in - 8.50 MW for Hydropower Nueva Ecija - Burgos Solar Power Project Phase I in Ilocos Norte - 90 MW additional capacity installations for Wind - DC 2017-12-0015: Renewable Portfolio Standards on On-Grid Areas Development of Burgos Solar Power Project Phases I and II Progress of the Renewable Portfolio Standards (RPS)
Empowered: Renewable Energy Decade Report 2008-2018 15 The Renewable Energy Policy Tools RA 9513 encourages consumers and businesses to choose RE resources through different fiscal and non-fiscal incentives. It has designed five major policy mechanisms to create a more RE-friendly environment.
RA 9513 also describes the following fiscal and non-fiscal incentives:
FISCAL NON-FISCAL
Income Duty-Free Reduced Tax Feed-in-Tariff Net-Metering Tax Holiday Importation Government Credit on (FIT) System and Low of Equipment Share Domestic System Income and VAT Capital Tax Rate Zero-Rating Equipment
Cash Exemption Payment of Tax Renewable Green Energy Provision for Incentive for from Transmission Exemption Portfolio Option interconnection Missionary Universal Charges on Carbon Standards Program Auxiliary Electrification Charge Credits (RPS) (GEOP) Servicues
San Carlos Ecozone, San Carlos, Negros Occidental
16 Empowered: Renewable Energy Decade Report 2008-2018 i. Feed-in-Tariff (FIT) System
The FIT system is intended to accelerate the development of emerging RE technologies by offering fixed rates for the sale of electricity generated by eligible RE facilities. Future RE development Aimed at accelerating the development of emerging RE resources, FIT provides: - Priority connection to the grid for electricity generated from emerging RE sources - Priority purchase, transmission of, and payment for such electricity by grid system operators - Fixed tariff to be paid for electricity produced from each type of RE resource over a fixed period of not less than 12 years. (Per ERC Resolution 16 series of 2010, eligible RE Plants shall be entitled to their FIT for 20 years).
FIT System Highlights as of 31 December 2018 BiOMASS SOLAR HYDROPOWER OCEAN WIND
Initial ERC-approved FIT rate in 2012 (Php/kWh) 6.63 9.68 5.9 deferred 8.53 Adjusted FIT rate (PhP/kWh) 6.59691 8.692 5.87053 deferred 7.404 Installation target (MW) (a) 250 500 250 10 400 Capacity of ERC-endorsed projects (MW) 145.22 525.95 46.1 - 393.90 Installation target balance (MW) 104.78 - 203.90 - 6.10
0.5% after two 0.5% after two 0.5% after two ERC-approved 6% after one year years from FIT years from FIT - years from FIT degression rate for FIT effectivity effectivity effectivity effectivity
1Degressed FIT rates (H&B-ERCRes1,2017) 2FIT rates for the respective additional installation targets (ERCRes6,s2015) 3Degressed FIT rates (H&B-ERCRes1,2017) 4FIT rates for the respective additional installation targets (ERCRes14,s2015)
Empowered: Renewable Energy Decade Report 2008-2018 17 ii. Net-Metering System
Solar photovoltaic (PV) panels installed on a residential roof. This setup can be used for net-metering. Net-Metering refers to a system appropriate for one bi-directional meter) distributed generation, in which a distribution (Either two uni-directional meters or grid user has a two-way connection to the grid. 1 MWh of RE Generation = 1 REC - The user is only charged or credited, as the case may be, the difference between its import energy and export energy. - The Qualified End-User (QE) and the Distribution Utility (DU) enter into a Net-Metering Agreement that governs the commercial and interconnection arrangements between them. End-User (Consumer) - Net-Metering allows the QE to be both producer and consumer (or "prosumer" of RE). SOURCE: Rules enabling the net-metering program for renewable energy (2013) from Energy Regulatory Commission
18 Empowered: Renewable Energy Decade Report 2008-2018 Net metering DOE Undersecretary Felix William The household’s electric bill Fuentebella provides a model to follow was cut from Php12,000 to for sourcing RE at the residential level. Php7,000 (a 42% savings) after Usec. Fuentebella’s home in Quezon City relying on solar energy. More has a generating capacity of 5 kW of solar than the cheaper monthly energy, with multiple panels installed electric bills his household on his roof. Enticed to try and generate receives, consciousness on RE, Usec. Fuentebella tapped a supplier their energy consumption Solar panels over the and adopted the system in 2013. It took was also one of its greater surface of a roof for six months for the installation to finish. fruits. Switching to LED efficient solar power His distribution utility, MERALCO, then light bulbs and inverter generation at home. assessed and matched his household’s air conditioners, Usec. energy demand. Fuentebella cites that their household’s consumption behavior definitely improved upon switching to RE.
Empowered: Renewable Energy Decade Report 2008-2018 19 iii. Renewable Portfolio Standards (RPS)
The RPS is a market-based policy mechanism under the RE Act that requires load-serving entities to source an agreed portion of their energy supply from eligible RE facilities. - RPS will help achieve the aspirational 35% target in the renewable energy generation mix expressed in MWh by 2030. New generation from the following 1% RE - There are separate RPS rules for On-Grid Eligible RE Facilities: (minimum areas (DC 2017-12-0015) and Off-Grid • Biomass annual incremental) Areas (DC 2018-08-0024). • Geothermal energy - The minimum annual increment required • Solar energy under the RPS On-Grid rules is initially set at • Run of river hydropower sources 1% per annum but may be adjusted subject to the assessment of DOE and the NREB. • Ocean energy • Wind energy • Hybrid system
Generation from Conventional Fuels and Existing RE Facilities
NOTE: Load-serving entities for On-Grid include Distribution Utilities (DUs), Retail Electricity Supplier (RES), and Generation Companies for Directly Connected Customers. For Off-Grid, this includes power generation companies in the area and DUs with embedded generation.
20 Empowered: Renewable Energy Decade Report 2008-2018 iv. Green Energy Option Program (GEOP)
RE Suppliers
GEOP is a policy mechanism under the RE Act that provides end-users the option to choose RE Resources as their source of energy (DC 2018-07-0019). Bio Energy - Customers that consume a monthly average peak demand of at least 100 kW in the past Private Distribution Utilities 12 months may participate in the GEOP. - DUs and Electric Cooperatives are required to inform its customers of the availability, Geothermal type of RE Resources and generation cost. Suppliers may opt to inform customers directly about RE Resources. Electric Cooperatives - The rules on the GEOP will be reviewed by the DOE once every two years or as necessary.
Solar Energy
Direct Connection
Hydropower
Eligible End-User (Consumer) Wind Power
Empowered: Renewable Energy Decade Report 2008-2018 21 v. Renewable Energy Market (REM)
The REM aims to: - Ensure a level playing field for all REM participants
RENEWABLE ENERGY - Issue RECs based on actual RE generation REC CERTIFICATE from eligible RE generation capacities - Establish a competitive, efficient and transparent market for the trading of RECs
Eligible Renewable Energy RPS RE Generation Certificate (REC) Compliance 1 MWh of eligible RE generation is equal to 1 REC
REM Trading Participants REM Data Providers
WESM FIT-All Fund Operator Administrator
Mandated Participants Eligible RE (Generation companies, Facilities including Electric Cooperatives and Suppliers of Electricity, etc.)
SOURCE: Overview on the Renewable Energy Market (2018, August) from Philippine Electricity Market Corporation|Overview of the Renewable Energy Market (2019, January 07) by Jalocon, C.L.C.
22 Empowered: Renewable Energy Decade Report 2008-2018 In the past decade, the power sector in the Philippines has seen a significant shift as an impact of the accelerated development of RE. RA 9513 did more than tap into indigenous sources to lessen the country’s carbon emission; it has also nurtured a conducive business environment for efficient power generation. Since What have been achieved so far? its passage in 2008, RA 9513 continues to push the country towards sustainability and energy self-reliance through its various supporting policy mechanisms.
Net-Metering System ERC issued net-metering rules and Renewable Portfolio Standard (RPS) Feed-In-Tariff (FIT) System interconnection standards (2015) Issuance of DC 2017-12-0015: Renewable Portfolio 2,232 QEs were registered with a Energy Regulatory Commission (ERC) issued Standards on On-Grid Areas (2017) FIT Rules (2010) total rated capacity of 17,569.6 kW (as of December 2018) Issuance of DC 2018-08-0024: Renewable Portfolio ERC approval of FIT rates (2012) Standards on Off-Grid Areas (2018) On-going policy enhancement/technical ERC issued FIT Allowance (FIT-ALL) assistance study on distributed PV in Information, Education and Communication (IEC) Payment and Collection Guidelines (2013) collaboration with USAID Clean Power Asis, Campaign/Roll-Out Program for the Mandated National Renewable Energy Laboratory Participants ERC approved FIT-All Rates 0.0406 Php/kWh (NREL), Lawrence Berkeley National (2014-2015) Data gathering for determination of the RPS Laboratory (LBNL), and Chulalongkorn requirements Effectivity of newly approved FIT-All Rates (2015) University in Thailand New issuance of FIT Rates for Solar and Wind (2015) FIT System was extended to biomass until end 2019 and ROR Hydro installation target fully subscribed
Renewable Energy Market (REM)
Final Draft of Rules and Department Circular Roll-out program of RPS on On-Grid Area on the Establishment of REM and RE Registrar held October 2017 in Clark, Pampanga. Initiation and early development of the Philippine RE Market Systems (PREMS) for the handling of REC transaction allocation and compliance to RPS RA 9513 Green Energy Option Program (GEOP) RE Law Issuance of DC 2018-07-0019: Guidelines on Green Energy Option Program Final Draft DC on Operating Permit for RE Suppliers
Empowered: Renewable Energy Decade Report 2008-2018 23 BiGSHOW Resources More Achievements in the Philippines and Highlights
By 2030, the NREP sets a target of increasing the total RE installed capacity to 15,304 MW. This is almost triple the capacity level of 5,438 MW in 2010. Awarded Service The Philippines is endowed with abundant natural resources, including: Contracts under RA 9513 As of Dec 2017 BiOMASS GEOTHERMAL SOLAR Commercial Own-use with MORE THAN with MORE THAN with MORE THAN 500 MW 4,000 MW 5 kWh/m2/day Awarded Projects 55 24 (bagasse and rice hulls only) Potential capacity of awarded projects 346.68 MW 16.77 MW BIOMASS
Commercial Own-use Awarded Projects 41 0 Potential capacity of awarded projects 575.0 MW i HYDRO OCEAN WIND GEOTHERMAL with MORE THAN is the LARGEST with MORE THAN 10,000 MW with MORE THAN 76,600 MW Commercial Own-use 170,000 MW Awarded Projects 216 16 Potential capacity of awarded projects 6,882.92 MW 4.286 MW SOLAR
Hydro Ocean Commercial Awarded Projects 444 10 Hydro Potential capacity of awarded projects 13,467.53 31 and Oceanii Using the RE Law as basis, the NREP 2011-2030 was published. This national plan sets the targets and next Commercial Own-use steps to help the country attain its RE-focused goal of Awarded Projects 65 1 energy sustainability, security, and equity. The DOE notes Potential capacity of awarded projects 2,461.50 MW that the NREP is a “living document” with its targets WIND updated periodically as major developments in the iExcluding 1 potential project with 20MW capacity under PD 1442 energy sector occur. iiExcluding 49 installed projects with 2,643.68MW capacity under RA 7156, CA 120, PD 1645, RA 3601 & Own-Use SOURCE: Summary of Renewable Energy (RE) Projects as of December 31, 2017 from Department of Energy
24 Empowered: Renewable Energy Decade Report 2008-2018
HYDRO RE-based Capacity Targets VS. ADDITIONAL COST OF GREEN Installed Capacity CAPACITY INVESTMENT AS OF DEC 2018 IN MW BILLION PHP JOBS Ten years after its passage, the RE Law already has notable accomplishments for each BiGSHOW. 2009-2018 NO. OF JOBS
Exceeded 315.7 MW 469.12 21.678 Solid biomass total installed capacity target by 2030 11,142
(for both electrical and thermal use, Geothermal currently at 56%of its 3,461.0 MW 72.00 6.529 including residues) total installed capacity target by 2030 7,451
(for electrical use) Solar PV surpassed almost of its three-fold 953.18 77.405 20,799 285.0 MW total installed capacity target by 2030
9,497,272.33 t-CO2 Emission reduction (small ≤ 10MW) figure (cumulative reduction t-CO2 achieved 42%of its 8,724.1 MW total 213.04 29.758 from 2009-2017) installed capacity target by 2030 Hydropower 42,388
currently at 18% accomplishment of its 2,378.0 MW total installed capacity target by 393.90 49.720 2030. potential capacity of awarded projects Wind power for wind can surpass the 2030 target. Total Cost of Investment 16,874 iExcluding 1 potential project with 20MW capacity under PD 1442 185.090 (Billion PhP) iiExcluding 49 installed projects with 2,643.68MW capacity under RA 7156, CA 120, PD 1645, RA 3601 & Own-Use
Empowered: Renewable Energy Decade Report 2008-2018 25 Chapter 02 The BiGSHOW: Empowering Communities and Changing Lives
BiGSHOW
Biomass Geothermal Solar Hydropower and Ocean WInd
The Philippines is endowed with these indigenous energy resources, having an overall potential capacity of more than 250,000 MW. As of 2018, RE makes up 23.4% of the country’s energy generation mix and is projected to increase it to 35% by 2030. The policy mechanisms introduced in RA 9513 complement other environmental policies and laws in the Philippines. RA 9513 (or the BiGSHOW) opened doors to more socio-economic opportunities to communities that hosts or are located near RE facilities. The stories written in the next pages highlight the experiences of the Filipino people and how electrification empowered them and changed their quality of life. These stories are a validation that the RA 9513 and complementary policies are indeed working. A sneak peek of the BiGSHOW As of 2018 Biomass Geothermal Solar Hydropower Wind
Operational Power plant sitesi 26 32 49 103 6 FIT-eligible power plant 21 0 24 11 6 POWER Generation in GWh (for the year 2018) 1,105 10,435 1,249 9,384 1,153 Share in Total Generation Mix (Total for 2018: 99,765 GWh) 1.1% 10.5% 1.3% 9.4% 1.2% FIT Installed Capacity in MW (As of December 2018) 153.825 - 525.95 122.023 393.90
NON-FIT Installed Capacity in MW ii 1,918.19 iv (From 2009-2018) 195.035 72iii 366.40 68.87 -
90% 40% CAPACITY FACTORS Stand alone 15-19% Run-off river 23-34% 60% 85% (ave. 17%) 22% (ave. 28.5%) Cogeneration Storage Million barrels of oil equivalent saved from importing oil figure 0.3% 0.3% out of 32.83 Million Barrels 14.4% 18.2% (shared with 3.9% (shared with of Oil Equivalent (MTOE) wind) solar) iIncludes all national power plants before and after the implementation of the RE law SOURCE: Renewable Energy Management Bureau iiTotal installed capacity iiiInstalled capacity from 2008-2018 ivIncluding conversion from RA 7156 to RA 9513 BiOMASS
rganic wastes, usually left to rot, can be used for electricity generation. Rice Ohusks and/or bagasse are burned as fuel to boil water. The steam from the boiling water is used to run steam turbines, which in turn drive generators to produce electricity. This technology has been used in the country since early 1900s. Imagine, turning waste into electricity! “Your organic waste may not seem much. Give it to me—I turn waste into power.” Isabela Biomass Energy Corporation (IBEC) in Purok 6, Barangay Burgos, Alicia, Isabela.
32 Empowered: Renewable Energy Decade Report 2008-2018 Alicia, Isabela
Empowered: Renewable Energy Decade Report 2008-2018 33 How Does this RE Work?
Per RA 9513, biomass energy systems use biomass resources to produce heat, steam, mechanical power or electricity through either thermochemical, biochemical or physico-chemical processes.
The basic diagram focuses on one biomass technology approach called Combustion Technology or the Boiler-Steam Turbine- Generator: 3 1. Tons of rice husks are loaded and burned in a furnace or the “firing floor”. This furnace is lined with boiler tubes. 6 2. Demineralized water flows through the boiler tubes. 3. Heat from the burning rice husks boils the water, producing high-grade steam. 4. The steam then powers the turbine. 2 4 5 5. The turbine is connected to a generator, which produces electricity. 1 6. Electricity travels to the switchyard, to the substations, and lastly, the grid for distribution. The leftover water is cooled in the cooling tower for another round of boiling, while a silo collects the ash produced from burning the rice husks. On the other hand, an electrostatic precipitator (ESP) removes fine particles to filter the exhaust air before discharge to the environment ensuring that emissions are within standards.
34 Empowered: Renewable Energy Decade Report 2008-2018 21 Operational BiOMASS Power Plants in the Philippinesi Tarlac City, Tarlac 1.70 Biogas Power Plant San Mariano, Isabela MW 14.00 Bagasse-Fired Cogeneration MW Power Plant Samal, Bataan Luzon 11.10 Rice Husk-Fired Biomass MW Power Plant Alicia, Isabela 0.7% 14.00 Biomass Power Plant Installed Capacity Quezon City MW 0.876 Payatas Landfill Methane Recovery 0.8% MW and Power Generation Facility Generation Mix 0.424 Payatas Landfill Methane Recovery MW San Jose City, Nueva Ecija and Power Generation Facility 21.60 (Phase II: 640kW) Rice Husk-Fired Biomass MW Power Plant (Phase I and II) Visayas Muntinlupa City, Metro Manila 11.20 Rice Husk-Fired Thermal Manila Talavera, Nueva Ecija 3.0% MW Power Plant Installed Capacity 10.80 Rice Husk-Fired MW Power Plant Nasugbu, Batangas 3.1% 2.00 Bagasse-Fired Cogeneration Generation Mix MW Power Plant Rodriguez, Rizal 2.175 Montalban Landfill Methane Recovery Talisay City, Negros Occidental MW and Power Generation Facility 8.00 Mindanao Bagasse-Fired Cogeneration Power Plant 350.00 Refuse-Derived Fuel Processing Plant MW MT/day 1.4% Installed Capacity Silay City, Negros Occidental 2.00 Bagasse Cogeneration Pili, Camarines Sur MW Power Plant 4.40 Rice Husk- 0.6% MW Generation Mix Kabankalan City, Negros Occidental Fired Power Plant 20.00 Bagasse-Fired Cogeneration MW Power Plant Passi City, Iloilo Cebu Victorias City, Negros Occidental City 8.00 Biomass Cogeneration 10.80 Bagasse-Fired Cogeneration MW Power Plant Total of MW Power Plant San Carlos City, Negros Occidental Naga City, Cebu 1.1% 8.00 Biomass Cogeneration Plant 300.00 MW Refused Derive Fuel Installed Capacity MT/day Generation Facility Total of Maramag, Bukidnon 9.00 Biomass Cogeneration Plant Buluan, Maguindanao 1.1% MW 1.64 Multi-Feedstock Biomass Davao MW Power Plant Generation Mix City Sultan Kudarat, Maguindanao LEGEND: 13.50 Rice Husk-Fired Power Plant Plants installed after RA 9513 MW Tantangan, South Cotabato Plants installed before RA 9513 5.96 Biomass Power Plant Banga, South Cotabato MW 3.50 Biomass Cogeneration Plant iOnly includes capacities eligible for RPS compliance MW
Empowered: Renewable Energy Decade Report 2008-2018 35 Highlights and Achievements
Biomass
2018 Generation 1,105 GWh 384 MW Installed capacity as of 2018 1.1% 2018 Generation mix contribution 315.7 MW Total installed The establishment of IBEC in capacity by 2030 Purok 6, Brgy. Burgos, Alicia, Isabela aims to empower the SOURCE: Renewable Energy entire province of Isabela. Management Bureau The project was commissioned during the third quarter of 2015.
36 Empowered: Renewable Energy Decade Report 2008-2018 Every year, biomass' power generation has grown substantially—resulting to a constantly improving power generation that started from 250,000 MWh in 2009 to 1,105,000 MWh in 2018. As of 2018, biomass has an installed capacity of 258 MW—contributing 1.1% in the generation mix. The DOE also notes the smooth progress of biomass. The 276.7 MW target capacity addition by 2015 was achieved, resulting from the Biomass Resource Operating Contracts (BREOCs) awarded in 2010. Meanwhile, the efforts of reducing the country’s dependence on imported gasoline and diesel have also been increasing. The sector targets 276.7 MW capacity addition by 2030, while biofuels expect a 400-million-liter production capacity addition for its long-term plans.
Empowered: Renewable Energy Decade Report 2008-2018 37 Challenges
• Competing use for biofuel and biomass feedstock "The implementation of Feed-In Tariff (FIT) for food and fuel system encouraged more investments/development of biomass. As of December 2018, 18 biomass projects • Consolidation and collection of biomass feedstock have declared commerciality under the FIT system must be sustainable and efficient to minimize the use with a total capacity of 141.625 MW." of fossil fuels during transportation and maintain price
- Ruby B. De Guzman, Division Chief, Biomass Energy Management Division
38 Empowered: Renewable Energy Decade Report 2008-2018 NREP Ways Forward 2011-2030 Goals • Engagement with the private sector and academia for continuous research and development of alternative 315.7 MW biofuels and biomass feedstock Installed capacity
• Continuous development of efficient plan and programs for feedstock consolidation, ensuring that the most supply can be delivered to the project site 483.34 every transport, and improving farming equipment MW Installed capacity
Empowered: Renewable Energy Decade Report 2008-2018 39 Empowering Communities, Changing Lives
Green Innovations for Tomorrow Corporation is a 12 MW rice husk-fired biomass power plant in Talavera, Nueva Ecija.
40 Empowered: Renewable Energy Decade Report 2008-2018 Empowered: Renewable Energy Decade Report 2008-2018 41 Biomass benefits beyond energy
It has long been established that rice is a hefty source of carbohydrates, Leveraging on the word play, iPower uses ipa as fuel to power its but can it also be a source of electricity? 24 MW biomass power plant in Tulat Road, San Jose City, Nueva Ecija. Rice husks are put to better use, rather than the previous In the Rice Granary of the Philippines, Nueva Ecija, rice production is practice of dumping these along the riverbanks. According to highest. Rice paddies abound the stretch of its cities. Naturally, rice Christopher Corrales, iPower’s General Manager, rice husks millers and processors populate the area—polishing the staple food produce methane when left to rot. He emphasized that methane into its white perfection. While producing more than 1,800 metric is 21 times more harmful than carbon dioxide. tons of rice a year is something to take pride in, by-products also pile up as these polished grains are sacked. By-products such as rice husks, locally known as ipa, was a major problem in Nueva Ecija before the San Jose City I Power Corporation stepped in.
A truck in iPower Phase I in Tulat Road, San Jose City, Nueva Ecija collects Trucks drive onto the scale before and after dropping off the what is left of the burned rice husks to serve as soil conditioners for farming lands. rice husks. The net weight becomes the basis for payment.
42 Empowered: Renewable Energy Decade Report 2008-2018 iPower’s 12 MW Phase I in Tulat Road, San Jose City, Nueva Ecija is the first biomass power plant built after the passage of RA 9513. Instead of leaving organic wastes like rice husks to rot, the power plant helps the city avoid an annual emission of 31,000 tons of carbon dioxide.
Empowered: Renewable Energy Decade Report 2008-2018 43 Driven by passion Engr. Edgardo Alfonso, iPower’s Chief Operating own. He talked with financial institutions and Officer, led the establishment of iPower based key people who could fund the biomass power on the results of a 2004 study. Along with a plant project, but his luck grew thinner and project proposal, further feasibility studies thinner. That is until he finally met Lucio Co, were immediately performed to form part of through the Union Energy Corporation. the initial DOE requirements. Alfonso notes that Co owns 67% of iPower while the rest is owned the paperwork came easier than sourcing the by the San Jose City Rice Millers Association. financial requirements of iPower’s birth. Alfonso also serves as President of the Citing skepticism as one major hurdle in Association, which assures the supply of ipa looking for willing pockets, Alfonso said, “No (rice husks) as feedstock or fuel supply to one believe[d] in this project except me, the the power plant. What Alfonso revived with congressman, and the mayor.” 21 members, now grew to 40 members, all benefitting from the additional revenues from Without the aid of those initially supposed to the sale of waste. look for equity partners, Alfonso set out on his
In iPower Phase I located at Tulat Road, San Jose City, Nueva Ecija, rice husks, amounting to 13-14 tons per hour, are loaded onto the feeder to direct these to the furnace for burning. A loader prepares to scoop tons of rice husks to be fed to iPower Phase I’s “firing floor” or furnace.
44 Empowered: Renewable Energy Decade Report 2008-2018 “Ako, 100% ang paniniwala ko sa project na ‘to… nakita ko yung data, ang ganda eh.”
Engr. Edgardo Alfonso, iPower’s Chief Operating Officer, President of San Jose City Rice Millers Association, and owner of AGRINET Grains Processing Plant, both located in Nueva Ecija, recounts the odds he faced as he established the first biomass power plant built after the passage of RE law.
Owing to a 2004 study and the financing efforts of Engr. Edgardo Alfonso with the San Jose City Rice Millers Association in Nueva Ecija and Lucio Co, iPower stands today as “first grid-connected rice husk-fired power plant under the FIT system.”
Every hour, 13-14 tons of ipa is used to fuel belief and vision, he did not waste time dwelling iPower Phase I, which feeds solely on this by- into what others thought about the project, product. Meanwhile, iPower Phase II feeds on a instead, "Ako, 100% ang paniniwala ko sa mix of both rice husks and napier grass stalks project na 'to... nakita ko yung data, ang ganda reduced to the same size as the former. Each eh. (I really believe in this project 100%. I saw phase generates 12 MW of power from burning the data, it's promising)." waste products that would have otherwise Looking ahead, iPower is currently constructing caused Nueva Ecija a headache, had Alfonso its third biomass power plant. The planned 6 MW caved in the disbelief. In the end, Alfonso was Napier-fired power plant has gained municipal able to face the doubt head on as iPower stands support and is eyeing to be FIT-eligible as well. on its fifth year this 2019. Equipped with only his
Empowered: Renewable Energy Decade Report 2008-2018 45 Wastes as riches
iPower’s feedstock resources are at most 40 kilometers from its power plant site at Tulat Road, San Jose City, Nueva Ecija.
With the entry of iPower in Nueva Ecija, the formerly discarded rice husks have acquired a status as important as the staple grain it covered. Appreciation of the tiny specks of yellow focused on two things: its additional use and the value it creates. According to Ana-liza Palaganas, iPower’s HSE Officer and CRO, during the planting season, farmers would ask them for ash to use as soil conditioner. They provide farmers with “bottom ash,” or the kind that was not completely burned, for free. Jeffrey Mendoza, San Jose City’s Environment and Management Specialist, adds that ash is also used by the local government in producing organic fertilizers for their vegetable growing program, “Gulayan sa Bakuran (Backyard Vegetable Farming),” intended for 4Ps beneficiaries of Nueva Ecija. Rice husks used to be an environmental problem for Nueva Ecija. It now fuels iPower’s 24 MW biomass power plant in San Jose City, Nueva Ecija.
46 Empowered: Renewable Energy Decade Report 2008-2018 “Ang laki ng problema namin nung wala pa yung iPower dahil yung lahat ng mga rice mills, doon lahat nagtatapon sa gilid ng ilog.”
Aside from the environmental relief, Trina Cruz, San spikes. It has allowed host communities to gain Trina Cruz, San Jose City, Nueva Ecija’s Environment and Natural Jose City’s Environment and Natural Resources additional sources of income just from supplying Resources Officer, describes the rice husk disposal problem Officer, mentioned that tax collections from certain type of waste. in the city before iPower commenced operations in 2014. iPower has been beneficial for local revenues. Poultry or hog farmers can now sell manure at In fact, iPower was the highest tax payer in San Php 73 per cubic meter to biomass power plants Jose City in 2018. Its Real Property Tax has also sourcing animal wastes. Through this, farmers been helpful as half of it is directly allocated to now think twice about hosing manure down the a special education fund, while the other half is drain. On the other hand, municipal solid waste appropriated for the city and the host barangays. can also be used as fuel for power generation More so, Cruz emphasized that the LGU now through a biogas or landfill methane recovery functions with new perspectives in planning for technology. Bagasse, an agricultural residue from their community. Since the entry of iPower, turning sugar production, is used by Hawaiian-Philippine community wastes into a community’s wealth does Company (HPCo) for powering their biomass power not raise eyebrows anymore. plant. HPCo will eventually share a good portion Waste materials that can power a biomass power of the net revenue from power generation with plant is not limited to agricultural wastes, because their farmers through the planters associations both animal and urban wastes can fire up a power affiliated with the HPCo mill. plant as well as rice husks do. Just like any other commodity, as materials become useful, their value
Empowered: Renewable Energy Decade Report 2008-2018 47 Economic empowerment In developing RE sources, the DOE assures that developers maintain a collaborative relationship with its host communities through the Energy Regulation 1-94. With the priority given to host communities, iPower’s fruition became an avenue to discover San Jose City’s hidden potentials. Additional sources of income and social assistance became iPower’s main contributions to its host city. Instead of dumping rice husks and having to pay for landfill space, today, rice millers simply drive trucks of rice husks to the truck scale just in front of iPower and have their initial weights recorded. After dropping the rice husks at the plant, the trucks are weighed again to get the net weight of the rice husks. The amount becomes the basis for iPower’s payment. This opportunity allowed rice millers, like Alfonso himself, to make waste profitable.
Trucks carrying tons of rice husks or ipa from nearby rice millers go to iPower at Tulat Road, San Jose City, Nueva Ecija to sell their ipa at Php 2 per kilo.
48 Empowered: Renewable Energy Decade Report 2008-2018 Bong Natan, a local of San Jose Rice farmers at San Jose City, Nueva Ecija indirectly City, Nueva Ecija and iPower’s first benefit from the rice millers’ sale of rice husks as the utility worker, celebrates his 7th work millers can now buy unhusked rice at a higher price. anniversary in 2019.
“Ngayon, hindi mo na problema, kumikita Permanent and good-paying jobs also ka pa. (Now, it's not a problem anymore. It became available to residents of San Jose even gives you income).” City as they are prioritized in iPower’s human resource needs. While millers directly benefit from the sale of the rice husks, the benefits trickle down to Sourcing usefulness and livelihood from the farmers. The additional income allows rubbish used to be laughable, but as the millers to buy palay at higher prices. the bid for a cleaner and safer future Alfonso cites that San Jose City offers the increase, biomass power plants prove highest buying price of palay, resulting to that waste is not as dirty anymore. A whiff the flock of rice traders in the city. inside iPower’s power plant site is a subtle reminder of how Nueva Ecija’s economy is driven by rice, and now, rice husks too.
Dennis Sinagose, a local of San Jose City, Nueva Ecija, previously worked as a utility worker in iPower, but after his skills were discovered, he was promoted to Plant Technician.
Empowered: Renewable Energy Decade Report 2008-2018 49 GEOTHERMAL
he geothermal energy scene in the Philippines started in 1967 in Tiwi, TAlbay, where energy from beneath the Earth’s surface powered its first light bulb. This first step gave birth to the seven (7) geothermal production fields in the country. In 2018, geothermal contributed 10,435,305 MWh or 10.5% into the country’s overall energy generation mix. “I am hot, full of steam, and available 24/7. Harness me and I’ll wow you with my baseload capacity.” Depicted here are the geothermal wells of the Philippine Geothermal Production Company, Inc. (PGPC) located in their steamfield in Bay, Laguna. The PGPC Base Camp in Mak-Ban has nine wells in addition to the 85 wells, 23 of which are injectors, scattered in Bay and Sto. Tomas, Batangas.
52 Empowered: Renewable Energy Decade Report 2008-2018 Bay, Laguna
Empowered: Renewable Energy Decade Report 2008-2018 53 How Does this RE Work?
A geothermal system can be likened to a kettle or covered pot filled with water. When heated, the water boil and produce steam just like in a geothermal system.
The basic diagram explains the steps as to how geothermal sources are converted into RE 1. The energy in geothermal system is tapped by drilling a deep hole into the earth until it reaches the permeable underground reservoir rock, where water is stored. 2. The two phase water, liquid and steam, goes up the surface into a separator vessel where the steam is separated from the liquid. 3. The steam goes into the powerhouse where 2 3 it spins in the turbine. 4. The turbine is coupled with a generator that produces electricity and is transmitted 4 to the switchyard. There are four elements that compose a geothermal system, namely: heat source such as magma, a permeable underground reservoir rock which can hold water, a solid cap rock to maintain pressure, and water which carries the 1 heat.
54 Empowered: Renewable Energy Decade Report 2008-2018 32i Operational GEOTHERMAL Power Plants in the Philippinesii
Luzon 5.4% Installed Capacity 5.3% Generation Mix
Visayas Sto. Tomas, Batangas 32.00 28.3% Maibarara Geothermal Power Plant Tiwi, Albay Installed Capacity MW Manila 234.00 Tiwi Geothermal Powerplant 40.2% MW Generation Mix Bay, Laguna Sorsogon 442.80 MakBan Geothermal Power Plant 140.00 Bacon Manito Geothermal Power Plantiii MW MW Mindanao 15.73 MakBan Binary Geothermal Power Plantiv 2.9% MW Installed Capacity Leyte 6.5% 610.18 Unified Leyte Geothermal Power Plant Generation Mix MW 112.50 Tongonan Geothermal Power Plant MW Total of Cebu 8.3% City Installed Capacity Valencia, Negros Oriental 30.00 Southern Negros Geothermal Production Total of MW Field - Nasulo Goethermal Power Plant 192.5 Palinpinon Geothermal Powerplant 10.5% MW Generation Mix
LEGEND: 108.48 Mindanao Geothermal Powerplant Plants installed after RA 9513 MW Davao Plants installed before RA 9513 City iThis refers to the total number of power houses. The map shows the classification of power plant based on its location and type. Each power plant may have more than one power house. iiOnly includes capacities eligible for RPS compliance iiiThis plant existed before the RE Law, but was rehabilitated in 2015 ivOut of 15.73, 6 MW was rehabilitated in 2016
Empowered: Renewable Energy Decade Report 2008-2018 55 Highlights and Achievements
Geothermal
2018 Generation 10,435 GWh 1,918.19 MW Installed capacity as of 2018 10.5% 2018 Generation mix contribution 3461.0 MW Target installed capacity by 2030
56 Empowered: Renewable Energy Decade Report 2008-2018 As of December 2018, Geothermal has 2018. Three are new power plants and one is an installed capacity of 1,918.19 MW. It an expansion of the Tongonan 1 Geothermal has an overall contribution of 10.5% to the Energy Power Plant which will soon undergo generation mix. rehabilitation to increase its capacity. The Geothermal Sector Roadmap envisions The remaining targets in 43 sites throughout to add another 1,495.0 MW to the total the country is open for private sector generating capacity by 2030. investment and development. These projects have an investment potential of PhP 363 Currently, there are 15 Geothermal Service billion and will employ close to 2,500 full- Contracts under the pre-development stage Geothermal energy contributed 10.9% of clean energy to the grid time employees. in 2017—one of the biggest shares from the RE sector. This steamfield and four projects with capacity of 103 MW of the Philippine Geothermal Production Company, Inc. is located have already been committed as of December in the Municipalities of Bay and Calauan, Laguna and Municipality of Sto. Tomas, Batangas.
Empowered: Renewable Energy Decade Report 2008-2018 57 Challenges
• Misconception on the effects of geothermal projects "There are many investment to the community and environment resulting in opportunities in the geothermal sector. However, there opposition from LGUs and IP groups are challenges facing the development of these projects that need to be addressed. One of which is the expensive • Due to the nature of geothermal projects, the development costs for low exploration stage to select geothermal sites comes enthalpy geothermal resources and acidic resources or fluids." with high risks and intensive capital
- Ariel D. Fronda, Division Chief, Geothermal Energy • Geothermal resources are unique with varying Management Division characteristics which require different technologies for utilization. Some technologies are extremely expensive to utilize for project development
58 Empowered: Renewable Energy Decade Report 2008-2018 NREP Ways Forward 45 20402011-2030 Goals • Countinuous Information, Education and Goals Communication (IEC) campaigns and the promotion of the inclusion of RE in the basic education 3,461.0 MW Installed curriculum capacity
• Continuous support for the prioritizations for land conversion through the Competitive Renewable Energy Zones (CREZ) for geothermal projects 483.34 • Supporting policies for utilization of emerging MW technologies and unconventional resources Installed capacity
Empowered: Renewable Energy Decade Report 2008-2018 59 Empowering Communities, Changing Lives
Every inch of Maibarara Geothermal Inc's (MGI) 7.5 hectares in Brgy. Santiago, Sto. Tomas, Batangas is deemed purposeful as it houses two phases of geothermal energy production, totaling to 32 MW of power harnessed from heat below.
60 Empowered: Renewable Energy Decade Report 2008-2018 Sto. Tomas, Batangas
Empowered: Renewable Energy Decade Report 2008-2018 61 Sourcing geothermal resources underground is done at MGI’s steamfield in Brgy. Santiago, Sto. Tomas, Batangas. The pool-like structure collects the brine or the blue-colored fluid.
62 Empowered: Renewable Energy Decade Report 2008-2018 Geothermal powerplants as neighbors At first look, a few parts of the municipalities of Bay hot steam from the liquid sourced beneath the and Calauan in Laguna and Sto. Tomas in Batangas Earth’s surface. could look like something out of a classic video In contrast, Maibarara Geothermal Inc. (MGI) is game or even a magical cloud factory. compactly fitted and secluded in a 7.5 hectare land The AP Renewables Inc. (APRI) and the Philippine area in Sto. Tomas, Batangas. Maibarara-1, with Geothermal Production Company, Inc. (PGPC) work its 20 MW installed capacity, holds the record as together to have the Mak-Ban Geothermal Power one of the geothermal power plants with the fastest Plant running. While APRI maintains the 458 MW development—commissioning in 2014, just two geothermal power plant, PGPC operates the steam and a half years after its financial close in 2011. field that supplies the steam requirements of the Four years after the commissioning of Maibarara-1, power plant. The roads of the power plant’s host MGI has commissioned its 12 MW Maibarara-2 Philippine Geothermal Production Company, Inc. community are surrounded by large pipes carrying geothermal power plant. supplies the geothermal steam resource of the Mak-Ban geothermal power plant through the Fluid Collection and Reinjection System (FCRS).
Empowered: Renewable Energy Decade Report 2008-2018 63 Positive social impact It is impossible not to notice the aluminum-colored pipes that line Brgy. Bitin’s roads and homes as you make your way to PGPC’s main entrance in Bay, Laguna. Because PGPC has been operating for 40 years now, these pipes have blended in with the community as residents go about their usual routines. For many of the residents, the geothermal power plant is nothing out of the ordinary, especially when it has been a source of livelihood, social support, and opportunity. Noting PGPC’s contribution in livelihood creation, Brgy. Kagawad Mateo Navarez, mentions that most of the residents are either employed by PGPC or is a relative to one. Either way, Navarez is proud that residents have been prioritized in filling PGPC’s human assets. He adds that PGPC also maintains periodic medical and dental programs. The community was also able to convene and establish a multi-purpose cooperative. Apart from its lending, grocery, and refilling services, the cooperative does grass cutting services for PGPC.
The community vegetable garden of Brgy. Bitin, Bay, Laguna is home for fresh tomatoes, chili, cucumbers, patola, and ampalaya.
64 Empowered: Renewable Energy Decade Report 2008-2018 Feeding the quails has been Felipe Nedula’s usual task at their quail farm in Sitio Capuz, Sto. Tomas, Batangas - a livelihood provided by MGI. Sitio Capuz Community Development Association (SSCDA) markets about 2,900 good quality quail eggs in the province.
Empowered: Renewable Energy Decade Report 2008-2018 65 Better chances at life Since 2013, college scholarships in the host provinces of Laguna and Batangas are awarded to five deserving students yearly. One of the recipients of PGPC’s scholarships is Ronalene Lanao, who graduated with a bachelor’s degree in Industrial Engineering in 2017 from the Polytechnic University of the Philippines (PUP) in Sto. Tomas, Batangas. Ronalene has been a PGPC scholar since she was in high school. Without PGPC’s educational assistance, Ronalene emphasized that she would not have finished school. “Malaking tulong po siya kasi… malaki talaga yung possibility na hindi ako nakatapos ng pag-aaral kung hindi ako sinuportahan… ng Geothermal… (It's a big help. There was a big possibility
A previous out-of-school youth and now a student of Sentrong Sanayang Teknikal ng Kabataan (SSTK) in Poblacion 2, Sto. Tomas, Batangas shows his welding skills—just one of the many technical-vocational knowledge provided by the accredited training and assessment center.
66 Empowered: Renewable Energy Decade Report 2008-2018 YOUTH
“Malaking tulong po siya kasi… malaki talaga yung possibility na hindi SSTK has partnered with Yamaha to secure an avenue ako nakatapos ng for on-the-job trainings and future employment opportunities for its students. pag-aaral kung hindi ako sinuportahan… ng Geothermal…” that I won't be able to go to school if I wasn't supported by the geothermal [powerplant]),” Ronalene said. Philippine Geothermal Production PGPC’s presence can also be felt around those who were not as lucky in life. The Sentrong Sanayang Company, Inc. supported the Teknikal ng Kabataan or SSTK is one way of giving secondary and tertiary education out-of-school youths (OSYs) a chance at education, of Sto. Tomas, Batangas resident, and later on, a chance at a better quality of life. SSTK Ronalene Lanao. is an accredited training and assessment center for motorcycle and small engine servicing that has close ties in its industry, such as Yamaha Motor Philippines, where students can practice and train.
Empowered: Renewable Energy Decade Report 2008-2018 67 Communities as partners
Barangay Councilor Mateo Navarez and Forester Nicastor Balahadia is joined by friends in visiting their neighborhood vegetable garden which is also a project of their cooperative. Communities as partners Just a few meters away from PGPC, APRI operates to Build Teamwork, Engage Stakeholders, and the 458-MW Mak-Ban Geothermal Power Plant. In Enhance TMs Trust, is an initiative to increase its administration compound also in Brgy. Bitin, APRI volunteerism among employees. The Project opened an RE museum where learners of all ages matches employees’ interests and advocacies to can visit for free. The museum called, Cleanergy communities they can serve. Center, has interactive displays and multimedia Owing to the success of APRI’s CSR programs, presentations for geothermal energy education. Antonio Alviar, MGI’s CSR Manager cites its needs- Learners are greeted with a miniature version of based approach in community and outreach the 4,323-hectare land that covers the Mak-Ban activities. Its mission of “advancing business Geothermal Power Plant. Tour guides, who are also and community” resonates with how APRI treats employees of APRI, excite learners with fun facts communities as partners and stakeholders, rather and display pieces that help visualize geothermal than receivers. Alviar notes that an effective energy from sourcing to electricity generation. relationship with the community is achieved when APRI employees’ services and advocacies are not there is trust, but before that, the community must limited to the corporate setting as they volunteer get to know the community and vice versa. He adds, their time and talents to communities. The “…it is important that the community isn’t forced HEARTBEATS Project, which stands for Harnessing into this relationship.” Employees [sic] Abilities and Resourcefulness
68 Empowered: Renewable Energy Decade Report 2008-2018 In a geothermal power plant, the vertical structure called the separator separates steam from hot liquid. The horizontal pipes then allow each to flow freely in the efforts to harness clean energy sourced below the ground. This setup is in Maibarara Geothermal Inc., Brgy. Santiago, Sto. Tomas, Batangas.
Empowered: Renewable Energy Decade Report 2008-2018 69 MaibararaExcess steam Geothermal, from MGI’s silencers Inc.’s blend sump acts as a staging area naturally with the scenic background of Mt. Makiling. for the brine prior to its reinjection into the reservoir.
70 Empowered: Renewable Energy Decade Report 2008-2018 Geothermal wells at PGPC in Brgy. Bitin, Bay, Laguna are drilled Maibarara Geothermal Inc. in Brgy. Santiago, Sto. Tomas, Batangas uses deep into the earth to extract water which turn into steam. bio-indicators such as butterflies and flowering plants to counter-check air quality. Clean energy, clean environment From afar, puffs of white clouds can be seen emerging Maibarara steamfield itself is also surrounded by maintaining this geothermal power plant do not have from huge chimneys implanted at an isolated numerous plants. The view is now a coupling of harmful effects on the environment. 7.5-hectare land in Sto. Tomas, Batangas. The the natural and the mechanical. This is somehow MGI has successfully synchronized its 12 MW Maibarara Geothermal Inc. (MGI) harnesses steam necessary as Francisco Delfin Jr., president of MGI, power plant to the Luzon Grid in 2018 as part of from the underground reservoir naturally created by explains that if vegetation in the area is maintained, its construction. This 12-megawatt is in addition to the nearby Mt. Makiling. After use, the water gathered the geothermal resource is sustained as well. Delfin its existing 20 MW which has been in commercial underground is cooled for reinjection. This cooling also noted that the cloud-looking emissions are safe, operation since 2014. MGI is the first RE project process produces the white puffs that join with actual and that hydrogen sulfide is strictly monitored in the declared commercial under RA 9513. clouds above. site. MGI also maintains a butterfly garden and a fish pond that serve as bio-indicators for the site. All these Spacious and silver pipes line the site’s area with show that the processes involved in operating and the green span of Mt. Makiling as its canvas. The
Empowered: Renewable Energy Decade Report 2008-2018 71 SOLAR
f plants photosynthesize using sunlight, electric-powered technologies can also use sunlight for energy. The Philippines Iis located near the equator, making it an excellent candidate as a viable resource for solar energy. Currently, solar has an installed capacity of 928.58 MW. It has already exceeded its 2030 target total capacity addition of 284 MW. Imagine how many industries and communities it can power. With recent technology, solar power systems can be both applied to on- and off-grid areas. Aggressive economic growth for the country is not far behind. As long as there is sunlight, solar power will always be available. “With SUNLIGHT comes Great power.” Solar power is a variable energy source that is dependent on the cycle of the sun. The Philippines, being situated near the equator, has many potential sites where solar energy may be harnessed. As of 2018, the country has an installed generating capacity of 896 MW. Solar power technology may not generate energy at night but it is capable of supplying electricity to the grid at daytime. The San Carlos Ecozone in San Carlos City, Negros Occidental is an aggregate of 394 hectares of land that houses bioethanol, biomass, and solar power plants. SaCaSol is located within this ecozone.
74 Empowered: Renewable Energy Decade Report 2008-2018 San Carlos City, Negros Occidental
Empowered: Renewable Energy Decade Report 2008-2018 75 How Does this RE Work?
There are two types of solar technologies: photovoltaic (PV) power systems and thermal systems.
The basic description explains how large solar 1 PV plants work. However, other kinds of solar PV systems such as solar home systems, rooftop solar PV, and solar PV mini-grids are also currently operating in the Philippines. 1. PV cells receive irradiance (photons) from the sun and this triggers a chemical reaction 4 to produce electricity in direct current (DC) form. 2. The PV modules are connected to a string compact box (SCB), which is then connected to an inverter. 2 3. The inverter, together with the transformer and switchgear, converts the DC electricity 3 produced by the PV cells into alternating current (AC), the current type exported into the grid. 4. From the switchgear, AC electricity is now transmitted to the switchyard and the switching station exports the electricity to the main grid.
76 Empowered: Renewable Energy Decade Report 2008-2018 Burgos, Ilocos Norte Currimao, Ilocos Norte 4.10 Burgos Solar Power 20.00 Currimao Solar 40 Operational SOLAR MWp Project Phase 1 MWp Power Project Sarrat, Ilocos Norte i 2.66 Burgos Solar Power MWp Project Phase 2 1.00 Sarrat Solar Power Plants in the Philippines MWp Power Project Mexico, Pampanga Palauig, Zambales 10.00 Tarlac City, Tarlac Pampanga Solar 5.02 MWp Power Project 1 Palauig Solar 50.07 Tarlac Solar Power Project MWp Power Project 13.14 Pampanga Solar MWp Luzon MWp Power Project 2 Tarlac City, San Jose & Capas, Tarlac Clark Special Economic 8.84 Armenia Solar Power Project Zone, Pampanga MWp 2.2% 22.33 Clark Solar Tarlac City & Victoria, Tarlac Installed Capacity MWp Power Project 7.48 Dalayap Solar Power Project MWp Subic Bay Metropolitan Authority 0.7% 25.197 Generation Mix 7.14 Sta. Rita Sta. Rita Cabanatuan City, Nueva Ecija MWp SPP Phase 1 MWp SPP Phase 2 10.26 Cabanatuan Solar Power Project MW Visayas Hermosa, Bataan Manila San Ildefonso, Bulacan 14.51 Hermosa Solar MWp Power Project 15.00 Bulacan III Solar MWp 14.0% Morong, Bataan Valenzuela City, Quezon City, Metro Manila Power Project Installed Capacity 5.02 Metro Manila San Rafael, Bulacan Morong Solar 1.50 SM North Solar 3.82 MWp Power Project 8.50 Valenzuela MWp Power Project San Rafael 4.6% Mariveles City, Bataan MW Solar Power Project MWp Solar Power Project Generation Mix 18.00 Sta. Rosa, Laguna Bataan Solar Calatagan, Batangas MWp Power Project 1.68 2.04 Lian Solar CW Home Depot Rosario and General MWp Solar Power Project Mindanao MWp Power Project Trias, Cavite 63.30 Calatagan Solar Biñan City, Laguna 41.30 Cavite Economic 0.70 MWp Power Project MWp Central Mall Binan 1.6% Zone Solar MWp Solar Power Plant Power Project Installed Capacity San Carlos City, Negros Occidental Ormoc City, Leyte Malay, Aklan 30.00 Ormoc Solar 22.00 San Carlos Solar Power MWp MWp 0.363 Power Project 0.7% Project Phase I-A and I-B Boracay Solar Palo, Leyte Generation Mix (SACASOL I-A & I-B) MWp Power Project 49.81 Palo Solar 23.00 San Carlos Solar Power Kalibo, Aklan MWp MWp Project Phase I-C and I-D Power Project 0.218 Cebu (SACASOL I-C & I-D) Kalibo Solar City MWp Power Project 58.98 SACASUN Solar Power Total of MWp Iloilo City,Iloilo Project 5.67 La Carlota City, Negros Occidental Miag-ao Solar MWp Power Project 3.8% 32.00 La Carlota Solar Power MWp Installed Capacity Project (ISLASOL II) Toledo, Cebu Cadiz City, Negros Occidental 132.50 60.00 Toledo Solar Total of Cadiz Solar MWp MWp Power Project Bais City, Negros Oriental Power Project Kabankalan, Negros Occidental Indahag, Cagayan de Oro 18.00 Bais Solar Villanueva, Misamis Oriental 1.3% 0.605 1.00 Kabankalan Solar MWp Power Project CEPALCO 12.50 Generation Mix MWp Power Project Dumaguete, Negros Oriental MWp Kirahon Solar Davao MWp Power Project Victorias, Negros Occidental 0.265 Dumaguete Solar City 0.635 Victorias Solar MWp Power Project Tagum, Davao del Norte LEGEND: MWp Power Project Kibawe, Bukidnon 10.49 1.11 Tagum Solar Plants installed after RA 9513 Silay City, Negros Occidental Kibawe Solar MWp Power Project MWp Power Project Plants installed before RA 9513 25.01 Silay Solar MWp Power Project Surallah, South Cotabato Digos City, Davao del Sur Manapla, Negros Occidental 6.23 28.59 Digos Solar 48.00 Centrala Solar iOnly includes capacities eligible for RPS compliance Manapla Solar MWp Power Project MWp Power Project MWp Power Project
Empowered:Empowered: Philippines Renewable Renewable Energy Decade Energy Report Decade 2008-2018 Report 77 Highlights and Achievements
Solar
2018 Generation 1,249 GWh 928.58 MW* Installed capacity as of 2018 1.3% 2018 Generation mix contribution 285.0 MW Target installed capacity by 2030 SOURCE: Renewable Energy Management Bureau *Direct Current (DC) installed capacity
78 Empowered: Renewable Energy Decade Report 2008-2018 Based on the targets of the NREP, solar PV projects have surpassed the original expectations for the sector and have tripled the expected capacity mid-way of the 20-year planning period of 2011 to 2030. The first FIT round resulted in the implementation of six projects with a combined capacity of 108 MWp while the second FIT round resulted to a combined SaCaSol Solar Farm in the San Carlos Ecozone, San Carlos City, capacity of 417.05 MWp. Also, there are Negros Occidental is one of Southeast Asia’s first grid-tied around 18 MWp of solar power plants solar farm and one of the Philippines first utility-scale solar farm. that are now operating under the net It served as the benchmark of other solar farms metering scheme. in the ASEAN region when it started operating in 2014.
Empowered: Renewable Energy Decade Report 2008-2018 79 Challenges
• Delay in the establishment of linkages with local "To meet the looming capacity communities, market mechanisms and other shortage during the summer of 2016, the original FIT institutional support that will enable the success target capacity was increased of the solar power sector ten-folds (500 MW) and was eventually over-subscribed with the commissioning of an additional capacity of 417.05 MW in March 2016. • Variability of solar power resource due to factors The total installed solar capacity is 928.62 MW wherein 525.95 such as temperature and seasons result in a MW are FIT-qualified varied production of power solar projects."
- Fortunato S. Sibayan, Division Chief, Solar Wind Energy Management Division
80 Empowered: Renewable Energy Decade Report 2008-2018 NREP Ways Forward 45 20402011-2030 Goals • Programs and activities to support the solar sector Goals roadmap will be implemented. These programs include the establishment of Solar PV Codes and Standards, 285.0 MW Installed setting up the Solar PV Institute, launching of the capacity Solar PV Laboratory, and relevant IEC activities
• Conduct studies on the storage of electricity, its economic opportunities, and optimal mechanisms 483.34 MW Installed capacity
Empowered: Renewable Energy Decade Report 2008-2018 81 Empowering Communities, Changing Lives
Vast tracts of land, coupled with RE developer-friendly policies initiated by the LGU, make San Carlos City, Negros Occidental a great hub for sustainable development.
82 Empowered: Renewable Energy Decade Report 2008-2018 Empowered: Renewable Energy Decade Report 2008-2018 83 year contributed an extra 9 MWp into the grid and did not stop at that. In 2015, Phases C and D were already in operation, contributing 13 and 10 MWp to the grid respectively. With all these, SaCaSol is able to supply for daytime peak power of 45MWP to the grid throughout the entire year. SaCaSol has many achievements under its name: it is one of Southeast Asia’s earliest grid-tied solar farm; one of the Philippines’s first utility- scale solar farm; and, the country’s first commercial solar project that availed the FIT scheme. While Phase A and B of the plant were being constructed, other solar energy investors were keenly observing its development. It served as a benchmark for other interested developers that solar energy is a green technology that works in large scale. It started generating and injecting clean energy to the grid in 2014, and other developers followed suit. The plant is now capable of generating 68.2 GWh of clean energy per year. The project was able to open up an entire industry of power generation through this renewable solar energy resource. San Carlos LGU employees highlight the city’s sustainable projects that earned its award as ASEAN’s Sustainable City. Maintenance of the SaCaSol Solar Farm in San Carlos City, Negros Occidental includes grass mowing where solar panels are installed. Trailblazers In 2000, the NREL completed a national assessment of solar resources of the country. The study found that the Negros Island is one of the best locations for a solar farm, most especially in February to October where solar energy is at its peak. In particular, San Carlos City, Negros Occidental has several unique features that makes it one of the more desirable spots for a solar farm. The city is on the Eastern coast of Negros where the presence of mountain ranges in the center of the island blocks the cumulus clouds from bringing in water during the rainy months. This makes the city drier and more exposed to sunlight compared to the Western and Northern parts of the Island. With this in mind, coupled with the enticing race-to-FIT scheme, San Carlos Solar Energy, Inc. (SaCaSol) did not waste time in conceptualizing its first solar power plant project in February 2013. By 2014, SaCaSol’s Phase A started to commercially operate and contribute 13 MWp to the grid. Its addition of Phase B in the same
84 Empowered: Renewable Energy Decade Report 2008-2018 A pedicab stands in front of the San Carlos Borromeo Cathedral Parish in Atienza Avenue, San Carlos City, Negros Locally-driven Occidental. The pedicab, a bicycle outfitted with a sidecar, sustainability is powered by human cycling and has zero emissions.
San Carlos City was designated as a Special Asia during the 3rd and 4th ASEAN Economic Zone in 2014. Within the area, Environmentally Sustainable Cities (ESC) various biomass, ethanol, and solar power Awards in 2014 and 2017, respectively. In plants can be found. It has 394 hectares of 2018, San Carlos was included in the Top land appropriated for agro-industrial use. 100 Sustainable Destinations by Green Destinations. This is the first global award The City Government made its town attractive of the City for its sustainable practices. It to RE investors by passing an ordinance also became one of the 25 cities in the wherein developers are given a five-year Philippines to complete its Greenhouse Gas Real Property Tax (RPT) holiday. This LGU- (GHG) inventory. Doing this signifies the City initiative is unique to the city,The enticing pedicab, bicycle more outfitted with a sidecar, Government’s commitment to consistently RE developers to put up poweris one plants of the mainwithin transportation means in provinces. It can accommodate,measure at most, andtwo report GHG emissions and the Ecozone. persons at one time. develop climate action plans and low- The RPT holiday incentive is just one of San emission urban development strategies. Carlos City’s strategies to drive sustainable With these accomplishments, it is no development. Envisioning itself as the RE wonder that political will is key to achieving Hub of Asia, the City Government has been sustainability for San Carlos City. campaigning hard for sustainable living, as attested by the rigorous implementation of RA 9003 (Ecological Solid Waste Management Act). They developed their localized Solid The San Carlos City Sanitary Landfill Waste Management (SWM) Program known and its materials recovery facility (MRF). for its best practices in SWM planning and implementation. Comprehensive Information Education Campaigns (IECs) on recycling, waste segregation, and banning the use of Because of the city’s plastics are also in place. ordinance banning plastic bags in establishments, The City Government’s campaigns for market vendors in San sustainability made the residents better Carlos Farmer’s Market, understand the positive impact of RE. All San Carlos City, Negros these efforts made San Carlos City the Occidental wrap their good frontrunner for the ASEAN Sustainable and produce in recyclable City Award. It was conferred the Most materials such as old Environmentally Sustainable City in Southeast newspapers or wide tree leaves.
Empowered: Renewable Energy Decade Report 2008-2018 85 This home in Sitio Tagpinasao in Palawan is equipped with a solar photovoltaic home system (SHS) that is able to provide 30 Wp and can power an AM/FM transistor radio with MP3 player and charge cellphones. The SHS is usually provided and installed in remote and highly inaccessible areas in the country.
Caubian Island Now Looks Very Bright At Night
Contributed by Lourdes S. Arciaga, Senior Research Specialist, DOE Visayas Field Office Anastacia Balansag lives with her family Barangay which only runs from 6:00 in Caubian, a small island barangay off PM to 12:00 MN. Each household the coast of mainland Cebu. It can be had to pay PhP15.00 per night for the reached from Lapu-Lapu City by boat in lighting and additional PhP15.00 per about an hour. Her family is a beneficiary night if they have a television set. From DOE’s Household Electrification Program of the DOE’s Household Electrification 12:00 MN until sunrise, the families Program (HEP) for Off-grid Areas using used kerosene lamps since most of Contributed by Lourdes S. Arciaga, Solar Home System (SHS). them start their day early to prepare for their fishing activities. Senior Science Research Specialist, DOE-Visayas Field Office In 2014, the SHS with a capacity of 30 The Household Electrification Program Energy Centers (ARECs) based at selected Wp was installed at Anastacia’s house According to Anastacia, the Solar (HEP) is a presidential priority program academic institutions nationwide. which powers three units of 3 watt-LED Home System is a big help to their of DOE which aims to contribute in bulb and one unit of one watt LED bulb. daily life. With the SHS, they no longer Through the HEP, remote and off- attaining the target of 100% household It also has a built-in AM/FM radio, MP3 depend on the expensive, noisy, and grid areas which are not reachable electrification level in the country. HEP player, and cellphone charger. By the unreliable diesel-run generator set. by electric power lines, now have provides electricity primarily for lighting end of 2015, all the 425 households They can now work around their house significantly improved lives. Aside from using mature RE technologies such as in Caubian were powered by the SHS. efficiently especially during wee hours. better lighting, the conduct of social solar photovoltaic home systems and Moreover, two units of 75 Wp Communal She narrated that even if they need to preparation and organization of Solar micro-hydro systems in remote off-grid Solar Home System are also installed contribute PhP200.00 per month to Power Associations (SOPA) that manage areas not reachable by electric power at Caubian’s public school and health their organized Solar Power Association the operation and maintenance of the lines. A regular program of the DOE, center. There are also five Solar (PV) (SOPA) for the operation & maintenance SHS units in their respective off-grid the HEP is implemented in partnership Streetlights installed at the perimeter of of SHS, it is much cheaper compared sitios have led to better empowerment with the Electric Cooperatives (ECs) the boat landing areas of the island. to the cost of using generator set and of rural communities and encouraged kerosene. With all households having and Distribution Utilities (DUs) with the Prior to the installation of the SHS, savings of funds for the maintenance of SHS, the whole Caubian Island now assistance of the Affiliated Renewable residents depended on the diesel- the SHS units to ensure its sustainability. looks very bright at night, she added. driven generator set operated by the Solar-powered livelihood equipment have been installed by ASEP in far and hard-to-reach offgrid areas of Mindanao to promote productive uses of RE. More income generation for families, Productive more livelihood opportunities Uses of for each community. Renewable Energy
The enactment of the RA 9513 is also In 2018, the instrumental in programs that can help ASEP-DOE team increase income generation of rural implemented the communities in the country. The DOE, PURE projects in 2 Davao through the REMB, partners with different sites. Sitio Mahayag was provided with stakeholders in promoting the productive a solar-powered corn sheller, corn uses of RE. miller, biomass dryer for use by its 104 households. New Mabuhay, with 136 DOE, in partnership with Access to Sustainable households, was provided with 2 solar- Energy Programme (ASEP), provides 40,500 powered abaca spindlers. The systems are Solar Home Systems (SHS) for off-grid areas in now being managed and operated by the Mindanao through the World Bank-managed communities themselves. “PV Mainstreaming Program and Productive Uses of Renewable Energy (PURE)”. ASEP is a Currently, ASEP and DOE are preparing joint undertaking of the European Union and plans for other productive use installations, the Department of Energy. the next one a small solar powered rice mill for a community of 40 households in In 2017, feasibility studies were carried Sioasio, Sual and Pangasinan. As with the out in three offgrid sites: two agricultural first two projects in Davao, a grant for the communities in Davao Occidental: Sitio investment has been provided by the private New Mabuhay, Malita and Sitio Mahayag, donor Team Energy Foundation, Inc (TEFI). Don Marcelino and a fishing community in Barangay Banacon, Getafe in Bohol. HYDRO AND OCEAN
ydroelectric power (hydropower) is derived from the energy of falling or moving water. Among other purposes, water is Hwidely used to produce electricity. Hydropower is a proven, mature, predictable, and price competitive technology. A number of on- and off-grid hydropower plants have been built throughout the country, including impounding dams and run-of-river types. Impounding dams are able to supply energy during peak and off-peak hours while run-of-river types supply electricity whenever capable, depending on the volume of water that is discharged from the watersheds. “We make up 70% of the earth. Imagine the energy we have in store for YOU.” The Philippines has its own Grand Canyon? Yes, it does and it can be found in Manolo Fortich, Bukidnon. The rivers of Tagoloan and Mangima are two of the many rivers that carved the plateaus of Bukidnon, forming this majestic landscape.
90 Empowered: Renewable Energy Decade Report 2008-2018 Manolo, Fortich, Bukidnon
Empowered: Renewable Energy Decade Report 2008-2018 91 How Does this RE Work?
A hydropower power plant can generate power from flowing rivers or by impounding water. An impoundment hydropower facility stores water in a dam and releases it through an opening. This The basic diagram shows how a run-of-river turns the turbine and creates electricity. hydropower plant works: 1. The kinetic energy of falling water is used to generate power. 2. Water draining from watersheds into a catchment basin is redirected through the weir/dam structure, which allows entry of 1 the required water to the intake structure 2 while excess water goes back to the river. 3. The water coming from the intake goes through the desander/settling basin, allowing debris and other particles to settle before going into the headrace. 4. Water rushes into the penstock that feeds the turbine, which is housed in the power station together with the generator, 3 converting the kinetic energy of the flowing water into a useful rotational energy by spinning its blades. 5 5.The turbine is coupled to a generator that converts mechanical energy to electrical 4 energy. The generator power is stepped- up to a higher voltage from the substation, and then exported for transmission. There are two crucial parameters needed to consider for a run-of-river facility: the difference in elevations at the head start (weir/dam) and tail end (tailrace) of the flow and the quantity of water flowing at a certain rate. If the water is high enough and the water volume is enough to spin the blades of turbines, power is produced.
92 Empowered: Renewable Energy Decade Report 2008-2018 26 Operational HYDRO Tabuk, Kalinga 1.00 Bulanao Hydroelectric Power Project Power Plants in the Philippinesi MW San Mateo, Isabela Sabangan, Mountain Province 0.045 14.00 14.00 Lateral B Hydroelectric Power Plant SabanganMW Hydroelectric MW MW Power Plant Luzon Ramon, Isabela Solano, Nueva Vizcaya 8.50 Maris Main Canal 1 1.80 1.80 MW Commonal-UddiawanMW Hydroelectric Power Plant 5.4% MW Hydroelectric Plant Installed Capacity Kiangan, Ifugao Tuba, Benguet 0.20 Ambangal Hydroelectric Power Plant 8.2% 3.80 Irisan 1 Hydroelectric Power Plant MW Generation Mix MW 0.82 Likud Hydroelectric Power Plant MW Rizal, Nueva Ecija Visayas 1.00 PRISMC Hydroelectric Power Plant MW Pantabangan, Nueva Ecija Manila 20.8 0.6% Nagcarlan, Laguna Pantabangan Hydroelectric Power Plant Installed Capacity MW 1.10 Balugbog Hydroelectric MW Power Plant San Miguel, Catanduanes 0.5% 2.10 Solong Hydroelectric Power Plant Generation Mix San Pablo City, Laguna MW 1.50 Palakpakin Hydroelectric MW Power Plant Caramoran, Catanduanes Mindanao 1.50 Hitoma 1 Hydroelectric Power Plant Baco, Oriental Mindoro MW 30.3% 2.10 Linao-Cawayan (Lower Cascade) Installed Capacity MW Hydroelectric Power Plant San Fernando, Romblon 3.00 Linao-Cawayan (Upper Cascade) 1.35 Cantingas Hydroelectric Power Plant 26.4% MW Hydroelectric Power Plant MW Generation Mix Bugasong, Antique 8.00 Villasiga Hydroelectric Power Project Manolo Fortich, Bukidnon Cebu City MW 45.936 Manolo Fortich 1 Hydroelectric Power Plant Total of MW Claveria, Misamis Oriental 27.387 Manolo Fortich 2 Hydroelectric Power Plant 8.00 Cabulig Hydroelectric Power Plant 15.8% MW MW Installed Capacity New Bataan, Compostela Valley Total of 3.00 New Bataan Hydroelectric Power Plant MW 9.4% Sta. Cruz, Davao del Sur 6.60 Tudaya 1 Hydroelectric Power Plant Generation Mix MW Davao City 7.00 Tudaya 2 Hydroelectric Power Plant LEGEND: MW Plants installed after RA 9513 26.00 Sibulan B Hydroelectric Power Plant MW Plants installed before RA 9513 16.50 Sibulan A Hydroelectric Power Plant MW iOnly includes capacities eligible for RPS compliance
Empowered: Renewable Energy Decade Report 2008-2018 93 Highlights and Achievements
Hydro
2018 Generation 9,384 GWh 3,701 MW Installed capacity as of 2018 9.4% 2018 Generation mix contribution 8,724.1 MW Target installed capacity by 2030
94 Empowered: Renewable Energy Decade Report 2008-2018 Kiangan, Ifugao
At present, there are 258 active projects, 84 of which are considered as committed or under development phase and 174 are indicative or under pre-development phase. The projects have a total installed generating capacity of 896 MW, achieving the full potential of the country’s hydropower There is life in water. Aside from its capacity to quench thirst, resource. Interest in hydropower projects the Likud hydropower plant in Barangay Duit, Kiangan, Ifugao remains high based on the number of is also a great source of energy to power homes. applications and awarded service contracts by the DOE.
Empowered: Renewable Energy Decade Report 2008-2018 95 Challenges
• Social prejudice against the building of large "Hydropower projects are mostly dams and other hydropower technologies as a located in remote areas that have difficulty in road access, result of the lack of understanding on RE. More peace, and order." than that, there is also a food or power dilemma - Andresito F. Ulgado, Division Chief, for most hydropower resources Hydropower and Ocean Energy Management Division • Hydropower production is intermittent and is vulnerable to climate risks.
96 Empowered: Renewable Energy Decade Report 2008-2018 NREP Ways Forward 45 20402011-2030 GoalsGoals • Regular and continuous IEC campaigns will be conducted to educate the public on hydropower 8,724.1 MW technology. Coordinate closely with LGUs in informing Installed the public on the multiuse of land for agriculture, capacity livelihood and hydropower
• Continuous support of research providing needed data for hydrological analysis and future hydropower 483.34 development MW Installed capacity
Empowered: Renewable Energy Decade Report 2008-2018 97 Empowering Communities, Changing Lives
Likud Mini-Hydro, Sitio Likud, Barangay Haliap, Kiangan, Ifugao
98 Empowered: Renewable Energy Decade Report 2008-2018 “Wala kaming ginto pero meron kaming tubig.” (We don’t have gold but we have water.) Ypuggo “Ypz” T. Tuguinay, Chief of the Operation and Planning Division, Ifugao Electric Cooperative (IFELCO), believes that Ifugao’s waters can attract hydropower investors to boost the province’s economic growth. The statement “Wala kaming ginto pero also seems to be applicable to Palawan’s and Bukidnon’s mountainous watersheds that meron kaming tubig.” empty into gullies, creating powerful rivers that, when harnessed, are capable of supplying I am a believer. Ypuggo “Ypz” T. Tuguinay, Chief of Operations electricity whether on- or off-grid. and Planning Division of Ifugao Electric Company (IFELCO) in Lagawe, Ifugao believes in the economic benefits The country has 103 hydropower plants of harnessing the waters of Ifugao Province. He is hoping currently in operation, 57 of which were that RE developers, too, would see this potential. registered under RA 9513 through Hydropower Service Contracts. The Likud Mini-Hydroelectric Power Plant in Ifugao can provide electricity to the grid of up to 820 kW. A much needed 40 kW off-grid micro- hydroelectric project in the Municipality of Brooke’s Point, Palawan is currently electrifying the Sitio Tagpinasao Elementary School and 25 households in the upland areas. It is planning to increase this electrification to 150 households. Meanwhile, the Manolo Fortich 1 and 2 of Hedcor Bukidnon, Inc. (HBI) has a total capacity of 73.3MW, contributing to the supply of electricity in various parts of Mindanao. The two powerplants in Manolo Fortich started commercial operation in 2018.
Empowered: Renewable Energy Decade Report 2008-2018 99 View of the Likud Mini-Hydro power station at the downstream portion in Sitio Likud, Barangay Haliap, Asipulo, Ifugao. Saving the rice terraces through hydropower The Ifugao Rice Terraces need help. Once this disappears, one of the country’s richest cultural heritages disappear too. Engr. Carmelita Buyuccan, Coordinator of the Ifugao Ruben Bulibol leads the rehabilitation of the Provincial Planning and Development Office (PPDO), Banaue Rice terraces. Through the Rice Terraces recounted that the Ifugao Rice Terraces was put Conservation Fund (RTCF), Bulibol uses the under the Endangered Heritage List of UNESCO’s chawwa farming system to restore Ifugao’s World Heritage Sites in 2001. The site was evaluated heritage gift to the world. to have seriously deteriorated, losing its historical authenticity and cultural significance. This inclusion in the said list led to the enforcement of serious and aggressive rehabilitation efforts of the cultural heritage site. In 2012, the Ifugao Rice Terraces was Batad Rice Terraces in Banaue, Ifugao belongs Batad Rice Terraces. These famed rice terraces belonging in UNESCO’s finally restored to its place in the UNESCO World to the list of UNESCO’s World Heritage Site. World Heritage Site are visited by local and foreign tourists alike. Heritage Sites. It is visited by local and foreign tourists alike.
100 Empowered: Renewable Energy Decade Report 2008-2018 Contributory to this success was that portions of it would set in motion the funneling of the much- the electricity sales of the Ambangal Mini-Hydro needed additional funds into the RTCF. Power Plant, commissioned in 2010, were allotted to the Rice Terraces Conservation Fund (RTCF), Engr. Carmelita Buyuccan, Coordinator of the Ifugao which is strictly used for the preservation and Provincial Planning and Development Office in Ifugao restoration of the Ifugao Rice Terraces. However, Provincial Capitol, Lagawe, Ifugao elaborates on the the Ambangal Mini-Hydro’s allocation for the RTCF efforts of the Ifugao Provincial Government to save the was insufficient. Other means of funneling funds Ifugao Rice Terraces. into the RTCF needed to be explored. It was then in 2013 that the Japan International Cooperation Agency (JICA), in partnership with DOE and Provincial Government of Ifugao, began implementing the Likud Mini-Hydropower project. Its main purpose was to save the deteriorating Ifugao Rice Terraces by securing funds for its conservation. Once the plant is fully operational, a major portion of the electricity sales will go into the RTCF. Part of the goals of the project is to train and hire locals to operate and maintain the plant. The Provincial Government of Ifugao assumed ownership, supervision and control of the 820kW Likud Mini- Hydropower Plant upon its turnover in 2017. Since its completion in 2015, the Likud Mini- Hydropower Plant, has been supplying electricity within the province. While this is the case, the settlement of payment for the energy supplied by the hydropower plant cannot be undertaken at this point since the application for approval of the power supply agreement between PGI and IFELCO is still on-process. The approval of this power supply agreement would be an important milestone as
Empowered: Renewable Energy Decade Report 2008-2018 101 Rural electrification transforms lives
“Pangarap kong magkaroon ng ilaw ang mga sitio rito sa Brooke’s Point.” Mary Jean D. Feliciano, Mayor of the Municipality of Brooke’s Point, Palawan strongly believes and supports sustainable development projects for longterm progress.
“Pangarap kong magkaroon ng ilaw ang mga sitio Joie Paramide, Division Chief of the Planning rito sa Brooke’s Point.” (It is my aspiration for all Office, shares the same sentiment. He has seen sitios in Brooke’s Point to have electricity), were the before and after of Sitio Tagpinasao upon its the words uttered by Mayor Mary Jean Feliciano electrification. He told stories of the community when asked how the 40 kW Tagpinasao Micro- living in the dark, literally and figuratively. A typical Hydropower Project came about. It is a joint day was waking up early morning, doing work or project of the Western Philippines University- going to school, then when the sun sets at about Affiliate Renewable Energy Center (WPU-AREC), 6:00 pm, everyone sleeps. Food goes to waste DOE, and the Local Government of Brooke’s because they do not have cooling equipment to Point, Palawan. preserve it. These changed when the Tagpinasao Micro-Hydropower started operating. The project is an example of the successful implementation of the Department of Budget and Management’s (DBM) Bottom-up Budgeting Behind Brooke’s Point, Palawan stands Mount Maruyog. (BuB) Program and the DOE’s Household It has the highest elevation at 955 MASL and is a known Electrification Program (HEP). Construction of the tourist spot that offers a panoramic view of the town and facility started in 2015 and was inaugurated in its surroundings. 16 August 2017.
102 Empowered: Renewable Energy Decade Report 2008-2018 “Talo ang lowland. Dito, nagbabrownout. Doon sa kanila, hindi.”
Joie Paramide, Chief, Planning Division, Municipality of Brooke’s Point narrates the stories of the community before and after establishing the micro-hydropower plant in Sitio Tagpinasao.
Teachers of Sitio Tagpinasao Elementary School in Sitio Tagpinasao, Brgy. Salogon, are now able to use electricity-powered technologies to facilitate the efficient learning of students.
The perfect jibe of the BuB and the HEP resulted in the the children. The availability of electricity made parties fruition of the Tagpinasao Micro-Hydropower Project. As Joie more enjoyable because of the videoke. narrated, the sitio now has a 24-hour supply of electricity. Currently, the municipality is still subsidizing the “Talo ang lowland. Dito, nagbabrownout. Doon sa kanila, operation and maintenance cost of the facility. But in hindi. (The lowland people lost. We have brownouts here time, once the sitio has enough funds, they will be able but in the uplands of Tagpinasao, there is no brownout)". operate and maintain it on their own. The expansion of He identified the school as the biggest beneficiary of the the project to the adjacent sitio is also not far behind. project because the teachers and the school itself are now equipped with the proper tools and equipment to educate
Empowered: Renewable Energy Decade Report 2008-2018 103 Edilbert S. Lumihay, known as Mang Biting, retells his story of hardly making ends meet until his employment during Hedcor’s construction in 2015 and permanent employment in 2017 in Manolo Fortich, Bukidnon. After that, he was finally able to afford and build a sturdy house for his family and provide more than their basic needs. Big project, big opportunities for the people The construction and operation of hydropower plants in the country have contributed to improvements in providing electricity to people and businesses. The presence of privately-owned and operated hydropower plants ushered in economic benefits for the host and adjacent communities. These include road accessibility, more opportunities for formal education, and increase in number of livelihood activities among others. The Hedcor Hydroelectric Power Station 1 in Manolo Fortich, Bukidnon houses Pelton-type turbines and Francis-type turbines, (with two units each type) and generates 45.9364 MW of power that feeds into the grid.
104 Empowered: Renewable Energy Decade Report 2008-2018 One of Bukidnon’s major produce is corn. A family in Brgy. Dalirig, Manolo Fortich, Habal-habal as main transportation means. Since Hedcor’s establishment Bukidnon can be seen here removing corn kernels from its cob. at Manolo Fortich, Bukidnon, the efficiency of transport has improved.
Greater economic opportunities In 2013, during the construction of the began, many opportunities for economic With the commercial operation of the two Manolo Fortich 1 and Manolo Fortich 2 gains were presented to the locals. The power plants, Hedcor is expected to provide Hydropower plants, communities in and previous travel time from the upland to the financial benefits to the host communities/ around Manolo Fortich in Bukidnon were lowland was approximately three hours using LGUs. The benefits can be used to subsidize given employment opportunities. Upon a carabao-pulled wagon. But because of road electricity consumption, finance livelihood commercial operation in 2018, Hedcor improvements, travel time is now only ten programs, and implement community Bukidnon Inc. (Hedcor) trained and hired minutes by motorcycle. This improvement development projects among others. qualified locals as employees. meant faster farm-to-market delivery of goods such as coffee and corn, as well as Ricardo Anlica, Guihean Barangay Captain, increased rate for return of investment for shared that since the hydropower project the farmers.
Empowered: Renewable Energy Decade Report 2008-2018 105 Situated on a wide plateau in North Central Mindanao, Bukidnon is considered to be the food basket of the region. Vast tracks of land are allocated for plantations of pineapples, bananas, and sugarcane.
Support programs with a heart Hedcor has many CSR programs for host communities In Barangay Lingi-on, Norliza Quipanes became teary- make more taro chips at shorter times, increasing the that include medical/dental missions and medical eyed the moment she started sharing her story about return rate of revenue. The RIC eventually expanded equipment donations; scholarships; infrastructure the Rural Improvement Club (RIC), an all-women to sell other items such as indigenously-designed development; support to livelihood programs; livelihood organization, whose goal was to generate ID holders, bead jewelry, laundry detergent, fabric education-related activities; tree planting; and, extra income for families. During RIC’s beginnings, the conditioners, and dishwashing liquids. They have environmental awareness campaigns. women thought of selling homemade taro chips. Their also developed an internal microfinancing scheme initial setup was a makeshift oven using wood (gatong) or paluwagan where the dividends are shared by the Engely H. Balutic, Hedcor’s CSR Assistant and a as fuel. The smoke from this stove made the mothers members. Through Norliza, their group grew from less Higaonon Manobo, elaborated that the company’s CSR tear up when they were cooking. Norliza thought there than 20 women to more than a hundred members programs focus on four socio-economic aspects of the must be a better way to do the business. She then today. The success of the group is a tug at the heart community: education, enterprise, environment, and approached Hedcor to request for assistance through for Norliza. "Hindi ko inakala na ang isang housewife health and well-being. With Hedcor’s strong presence the company’s CSR program. Hedcor provided na katulad ko ay magiging presidente ng isang in the community, Engely said that it is frequent to basic kitchen equipment and supplies to make the organization. (I didn't imagine that a housewife like hear students wanting to finish engineering studies so production of taro chips more efficient. No longer are me can be president of an organization)". as to be future employees of the company. the women’s health compromised and they can now
106 Empowered: Renewable Energy Decade Report 2008-2018 WOMEN
“Hindi ko inakala na ang isang housewife na katulad ko ay magiging presidente ng isang organisasyon.”
Norliza Quipanes recounts their beginnings of the Rural Improvement Club (RIC) in Barangay Lingi-On, a women’s livelihood organization in Manolo Fortich, Bukidnon, where she serves as its President. At first it was difficult to make taro chips, using crude methods and equipment. CSR Assistant of Hedcor in Manolo Fortich, Bukidnon, Engely But through Hedcor’s livelihood assistance, H. Balutic, elaborates on the company’s CSR programs their process became more efficient and that focuses on four key areas: education, enterprise, they now have expanded their business environment, and health and well-being. She is part of the beyond selling taro chips. Higaonon-Manobo Indigenous Tribe.
Empowered: Renewable Energy Decade Report 2008-2018 107 Like Engely, the indigenous peoples (IP) of Higaonon of the Manobo Tribe in Bukidnon are also given equal opportunity in employment. Christian Sumohoy, also a Higaonon, is currently an Assistant Liaison Officer equal of Hedcor. Driven by his passion for the environment, Christian is a believer in hydropower technology opportunities because of the many benefits he has received and is seeing from it. Hydropower technology electrifies households and commercial establishments in a “Yung mga bahay non-destructive way. Flowing water from rivers are channeled through an intake and is used to spin ng mga residente the turbines connected to a generator and produce electricity. To Christian, this kind of technology amazes dati kubo, ngayon, him because the environment need not be destroyed kalahati konkreto nor its resources be depleted to produce power. at yero na.”
("Residents’ houses used to be grass huts. Now, half of the house is made of concrete and galvanized iron.") Christian A. Sumohoy, Hedcor’s Assistant Liaison Officer, on his observations about the improved quality of life of the locally-employed workers during the construction period of the hydropower facility. He is of Higaonon-Manobo Indigenous Tribe descent and was hired by the company to ensure proper liaising between Hedcor in Manolo Fortich, Bukidnon and its directly-impacted communities.
108 Empowered: Renewable Energy Decade Report 2008-2018 “Hindi na bored ang mga Environment for learning Teachers Joseph Vejano and Elna Dumagsa- estudyante kasi nakakapanood Ventero of Sitio Tagpinasao Elementary School na sila ng lesson sa TV.” in Brookespoint are now able to use PowerPoint presentations and television sets to make students (The students are not bored more excited in learning. “Hindi na bored ang mga estudyante kasi nakakapanood na sila ng lesson anymore because they can sa TV. (The students are not bored anymore because they can watch the lesson on a TV)". She watch the lesson on a TV)" added that students are now more motivated to Elna Dumagsa-Ventero, Teacher 1 of Sitio Tagpinasao attend school because they are excited to learn Elementary School in Sitio Tagpinasao, Brgy. Salogon, through the multimedia learning instructions. Brooke’s Point, Palawan narrates the excitement For the teachers, their teaching process and of the students whenever the teachers would do preparation of lesson plans became easier. They a film showing activity. need not manually write their presentations. This allowed them to have more time not just for themselves and their families, but also to research and add more teaching materials. The school also now conducts evening activities because they already have an efficient light source at night. All these have contributed to the noticeably improved performance of the students in school. “Kaya na ng mga bata As Teacher Joseph has put it, “kaya na nila magkipagsabayan sa mga tiga-siyudad. (The makipagsabayan students can now be at par with students from sa mga tiga-siyudad. developed cities in the country)". (The children here can now catch up with the children from the city)" Joseph R. Vejano, Head Teacher 1 at Sitio Tagpinasao Elementary School, explained Students of Sitio Tagpinasao Elementary School now enjoy how teachers became more technologically and learn to use desktop computers. Teachers are hopeful that equipped in administering their teaching they will now be more technologically-adept and can be at par processes, positively impacting the improved with students studying in urban centers. performance of the students.
Empowered: Renewable Energy Decade Report 2008-2018 109 “Magastos ang walang ilaw kasi magastos ang sahing.”
Marcelo Lapus, Operator of the Sitio Tagpinasao Micro-Hydro Power Plant, shared that before electricity was available in their Sitio, buying fuel for lamps was even costlier. Not only do they have to pay for the fuel on a daily basis but the effort it takes to purchase adds to the cost.
Balion S. David narrated the story of his daughter who suffered third-degree burns from a fuel lamp (gasera)-related accident. He needed to sell his carabao, one of his main sources of livelihood, to pay for his daughter’s hospital bills. Twenty-six years after the tragic accident, Balion, pictured here with his daughter, is thankful for the sense of safety and security that electrification brought in their household and community in Sitio Tagpinasao, Brgy. Salogon, Brooke’s Point, Palawan.
Fostering Filipino values The Tagpinasao Micro-Hydro also fosters togetherness the sitio banded together to help solve it. They went up of the people and a sense of ownership for the project. to the headwaters to rid the intake of the debris, while The community practices gulpimano, a form of bayanihan the women contributed their cooking prowess to make wherein everyone gathers to aid someone or do something meals for the volunteers. It is a beautiful example of how for a common cause. a household electrification program (HEP) such as this can empower the people. Marcelo Lapuz and Balion David of Palawan narrated a time when the water intake of the hydro facility was blocked with a lot of organic debris. Recognizing the An indigenous lady of the Palaw’an Tribe impact of the problem to their community, the men of posing for the camera amidst the backdrop of the Sitio Tagpinasao power station.
110 Empowered: Renewable Energy Decade Report 2008-2018 Brookes Point, Palawan
Seen from this view is the Sitio Tagpinasao Micro-Hydro Power Plant Power Station that houses the turbine and generator which produces 40 kW of electricity powering 25 households in Sitio Tagpinasao, Brgy. Salogon, Brooke’s Point, Palawan. It is eyeing to power 125 more households in the near future.
Empowered: Renewable Energy Decade Report 2008-2018 111 WIND
hile an electric fan uses electricity to produce wind, a wind turbine uses wind Wto produce electricity. A wind turbine can generate megawatts of power, depending on the weather conditions. In fact, an indicator for a potential wind farm site is the presence of flagging trees or trees that are bent like how a flag would look like due to strong winds. Because of the vast land area a wind farm occupies, unused areas can be co-located with agricultural crops or even a solar farm. “I’ll blow you away with what my energy can do.” This previously idle land in Brgy. Saoit in Burgos, Ilocos Norte has been determined to be one of the best sites for wind energy generation.
114 Empowered: Renewable Energy Decade Report 2008-2018 Burgos, Ilocos Norte
Empowered: Renewable Energy Decade Report 2008-2018 115 How Does this RE Work?
Wind is a variable energy resource for power generation as ideal wind conditions may not always be available. Without wind, there is also no energy generation, but its dependability can be increased with the use of batteries for energy storage. Because of this, estimating wind power generation is done yearly, with respect to trends in annual data. The basic diagram illustrates how wind is harnessed to generate electricity: 1. A rotor (hub and blades) is required to harness the wind's kinetic energy and transform it into mechanical energy. 2. The nacelle, the bus-like container at 2 the back top of the wind turbine, houses the shift, gearbox, and generator. The influx of wind turns the rotor and blades. The gearbox turns the kinetic energy into 1 electrical energy. 4 3. A transformer converts the electrical energy into the right voltage for transmission. 4. The electricity generated is transported 3 through transmission lines. There are two kinds of wind turbines, namely vertical axis wind turbine and horizontal axis wind turbine. This discussion is focused on horizontal axis wind turbine as this is the one used in the country. This type of wind turbine can be (1) regulated through pitching. Pitching keeps the blades from turning when wind speed is too high or too low. It also has a (2) yaw mechanism that rotates the turbine to face the wind. To note, a wind turbine requires only a spinning motion to produce electricity, not force.
116 Empowered: Renewable Energy Decade Report 2008-2018 7 Operational WIND i Power Plants in the Philippines Pagudpud, Ilocos Norte 81.00 Caparispisan Wind Power Project MW Burgos, Ilocos Norte 150.00 Burgos Wind Power Project Luzon MW Bangui, Ilocos Norte 33.00 Bangui Bay Wind Power Project MW Phase 1 and 2 2.1% 18.90 Bangui Bay Wind Power Project Installed Capacity MW Phase 3 1.3% Generation Mix
Visayas Manila Pilillia, Rizal 54.00 Pililla Wind Power Project 2.6% MW Installed Capacity 1.6% Generation Mix
Mindanao Nabas, Aklan 36.00 Nabas Wind Power Project 0.0% MW Installed Capacity 0.0% Generation Mix
Cebu City
Total of San Lorenzo, Guimaras 54.00 San Lorenzo Wind Power Project 1.8% MW Installed Capacity Total of 1.2% Generation Mix Davao City LEGEND: Plants installed after RA 9513 Plants installed before RA 9513 iOnly includes capacities eligible for RPS compliance
Empowered: Renewable Energy Decade Report 2008-2018 117 Highlights and Achievements Wind
2018 Generation 1,153 GWh 427 MW Installed capacity as of 2018 1.2% 2018 Generation mix contribution 2,378.0 MW Total installed capacity by 2030
118 Empowered: Renewable Energy Decade Report 2008-2018 The NREP 2011-2030 targeted a 2,345 MW capacity addition for wind. As of December 31, 2017, DOE has awarded 65 service contracts, all projected to add 2,834 MW wind energy generation capacity. Of the 65, 51 are in pre-development stage, while 14 have already received their Certificates of Confirmation of Commerciality (COCCs) and are ready for development or commercialization. These service contracts are projected to add 2,834 MW capacity to the sector—490 MW more than the initial target. The country’s wind energy’s 2017 performance is historic as it generated a total of 1,094 GWH, with its 427 MW installed capacity—the best recorded performance of this RE resource so far. The FIT rates also encouraged the development of the 427 MW capacity, as sale of electricity is also assured under this system. Looking forward, wind grid parity is projected to be achieved by 2025. This means that the cost of wind energy is envisioned to be lower or equal with the cost of non-RE sources such as fossil fuels by 2025. Additionally, developers have been welcoming of the Energy Regulation 1-94 which provides financial appropriations for host communities from the sale of electricity. Developers are compliant in saving up for the Development and Livelihood Fund and Reforestation, Watershed Management Health and/ or Environment Enhancement Fund allocated for the benefit of the communities hosting RE sources. Prioritizing local hires and supplies has also been the standard practice of these developers. Before the establishment of the wind power plant, part of the idle land in Brgy. Saoit in Burgos, Ilocos Norte was a communal grazing area for horses and other animals. As the area turned into a tourism site, locals now offer horseback riding services to visitors.
Empowered: Renewable Energy Decade Report 2008-2018 119 Challenges
"The fiscal incentives and non- • General lack of understanding on the opportunities fiscal incentives particularly, that wind energy can provide the FIT mechanism, made possible the development of both Solar Power Plants (SPP) and Wind Power Plants (WPP) in the country. The fiscal incentives have improved the • Variability of wind resource due to temperature and viability of developing SPP and WPP while the FIT mechanism seasons result in a varied power productions provided a sustainable market. "
- Fortunato S. Sibayan, Division Chief, Solar Wind Energy Management Division • Limited knowledge on viable lands for wind generation
120 Empowered: Renewable Energy Decade Report 2008-2018 NREP Ways Forward 45 20402011-2030 GoalsGoals • Continued and regular IEC campaigns will promote social and environmental acceptability of wind 2,378.0 MW Installed projects capacity
• Studies on storage of electricity, its economic opportunities, and optimization will be developed 483.34 MW • CREZ will help in identifying potential areas for wind Installed generation and fast-track investments for the sector. capacity
Empowered: Renewable Energy Decade Report 2008-2018 121 Empowering Communities, Changing Lives
The Energy Development Corporation (EDC) operates the 150 MW Burgos Wind Project (BWP) that span the barangays of Saoit, Nagsurot, and Poblacion in Burgos, Ilocos Norte.
122 Empowered: Renewable Energy Decade Report 2008-2018 Empowered: Renewable Energy Decade Report 2008-2018 123 EDC uses the Vestas V90 wind turbines in its wind energy generation, which are strategically placed in areas that were identified through feasibility studies, most of which are located at Brgy. Saoit, Burgos, Ilocos Norte. Clean energy has arrived
Being one of the best sites for wind power generation In 2016, Ilocos Norte set the first environmental in the country, Ilocos Norte’s wind corridor has example by prohibiting the use of coal in energy been tapped by RE developers. One of the north’s generation in the locality. But even before it investors is Energy Development Corporation (EDC) subscribed to the clean and green, the province for the 150 MW Burgos Wind Project (BWP)—the had already been a favorite of RE developers. EDC’s largest wind farm in Southeast Asia. Seven hundred Burgos Wind Project added its 150 MW capacity hectares of public and private lands were leased to the 250 MW wind energy load of the province— in Burgos, Ilocos Norte, spanning the barangays making Ilocos Norte the wind energy capital of the of Saoit, Nagsurot, and Poblacion, where its 50 Philippines. The wind farm powers an estimate implanted wind turbines are each capable of of 200,000 households, while displacing carbon generating 3 MW of power. emissions amounting to 220,000 tons yearly. Ilocos Norte can take pride in its “worth the wait” EDC further deepened its environmental advocacy wind story. The Burgos Wind Project is the result by harnessing energy from the sun as well. A 4.26 of a nine-year pre-exploration period and a six-year MW solar farm in Brgy. Saoit is surrounded but development period. It took another 17 months for undisturbed by wind turbines. With these, the Burgos Vestas to strategically locate, construct, and assemble Wind Project and the Burgos Solar Project became all the Vestas V90 wind turbines based on how each the first co-located wind power & solar power plants productive location was plotted in the feasibility studies. in Southeast Asia. An initial 87 MW capacity was started in 2013, while Phase II with 63 MW was constructed the following year. In November 2014, the 150 MW total capacity was commissioned to the Grid.
124 Empowered: Renewable Energy Decade Report 2008-2018 The Burgos Wind Project is co-located with the 4.26 MW Burgos Solar Project in Brgy. Saoit, becoming the First co-located wind power and solar power plant in Southeast Asia.
Empowered: Renewable Energy Decade Report 2008-2018 125 Reaping the benefits
Wide-eyed awe filled the fifth-class municipality of provided the three barangays with additional income, Burgos, Ilocos Norte when EDC brought towering and contributed to improving barangay functionalities. and serene pillars of white to their shores, capable Aside from fiscal benefits, EDC has also been pursuing of engaging the local wind corridor’s supply for its advocacy on education and environment. One of power generation, while driving local and individual the most rigorously implemented projects involves economies. solid waste management in Burgos. Consultants The barangays of Saoit, Nagsurot, and Poblacion were provided for Saoit residents to encourage them hosts the 50 wind turbine units of the Burgos Wind to adopt proper waste practices, while EDC also Project, with 26 units in Saoit, 21 in Poblacion, and the assisted Poblacion in crafting its ten-year solid waste remaining 3 in Nagsurot. In a matter of years, these management plan. In turn, Poblacion was invited to host barangays will have more resources for their present its Solid Waste Management Best Practices communities as revenues from BWP accumulate by the in Baguio on February 2019. Meanwhile, Nagsurot’s breeze. ails root from a different environmental distress as its water supply problem persists. Often, residents have Prior to the BWP, the three barangays had limited to buy water by the drum from nearby barangays. To funds for their barangay services and functions. Beneficiaries of the EDC aid the residents, EDC and the Philippine Center for “Noon, maliit lang yung kita ng barangay namin, kasi and Philippine Center for Water Sanitation built rain water collectors and water dependent lang sa IRA... konti lang naman yung IRA Water Sanitation project tanks equipped with biosand filters in schools to serve namin.(Our barangay earned little before because we in Burgos, Ilocos Norte: as a repository of collected rain water. These are paired were dependent on IRA... Our IRA was not a lot),” Aprilla with comfort rooms and have been implemented in ten Aleta, Chairperson of Brgy. Nagsurot said. Since the elementary schools and one high school in Burgos. construction of the wind turbines, the barangays now receive Real Property Taxes (RPT) in return. The RPT has 10 Elementary Schools Barangay Chairpersons Aprilla Aleta for Brgy. Nagsurot, Glenn Joy Gervacio for Brgy. Saoit, and Joegie Jimenez for Brgy. Poblacion - the three barangays covered by Burgos Wind Farm. 1 High School
126 Empowered: Renewable Energy Decade Report 2008-2018 Aside from donating comfort rooms, EDC also provided a water sanitation system to 11 schools in Burgos, Ilocos Norte. Rain is collected in water tanks equipped with biosand filters. The water tank is connected to the wash area for students.
Empowered: Renewable Energy Decade Report 2008-2018 127 equal opportunities
"Kung wala siguro yung wind farm tsaka yung Kapurpurawan... yung tourism... siguro nandoon pa rin kami sa dati naming trabaho na pagsasaka."
(If not for the wind farm and Kapurpurawan tourism sites, we would probably be stuck with our old jobs [farming cogon]). Maryjean Francisco is the Business Manager of a vendors association at the Kapurpurawan Rock Formation in Burgos, Ilocos Norte. She recounts how tourism brought about by the wind farm allowed her to explore other livelihood options aside from farming cogon.
128 Empowered: Renewable Energy Decade Report 2008-2018 Providing more than Jojo Co of Brgy. Nagsurot, Burgos, Ilocos Norte, assembles the wind turbine pieces to be paired and sold just energy with the Cape Bojeador Lighthouse as one souvenir piece. Any tourism office would want the The wind turbines are sold for Php beauty of its province to stay in 50.00 each. With daily production the hearts of its visitors. At Ilocos amounting to a hundred pieces Norte, tourists can bring home and a profit of PhP 10.00 for each their own petite versions of the piece sold, Co’s weekly sale can wind turbines. Jojo Co, a resident amount to, at most, Php 5,000. of Brgy. Nagsurot, has been shaping and carving wood into mini wind turbines for five years. Students at the Nagsurot Elementary School in Burgos, Ilocos Norte dance the afternoon away.
Miniature wind turbines sell for Php 50 a piece, returning a profit of Php 10 for each piece sold for the vendors at the Kapurpurawan Rock Formation in Burgos, Ilocos Norte.
Empowered: Renewable Energy Decade Report 2008-2018 129 For an even better look of the turbines, EDC has dedicated a wind turbine site that provides an extensive view of the Burgos Wind Project. Once beside the C46 wind turbine located at an elevated hill, most of the wind turbines are now visible in one quick rotation. Jay-arr Tiguiamo, Tourism Officer of Burgos extends his gratitude after EDC opened the C46 tower for tours since it has been a way for the municipality to promote green tourism. After touring the wind farm, visitors normally go to the nearby Wilmer Arucan notes that the wind farm Kapurpurawan rock formation. Wilmer Arucan, along with CK the attracted more tourists to the Kapurpurawan horse, welcomes tourists descending from the stone staircase. Rock Formation in Burgos, Ilocos Norte, Arucan heads the 53 Department of Tourism-accredited members of the Burgos Horseback Riding Association, manning thereby increasing what they take home as well. the horseback riding activities at Kapurpurawan Rock Formation.
Horseback riding activities are hosted at the Kapurpurawan Rock Formation in Burgos, Ilocos EDC's Burgos Wind Project hosts 50 wind Norte. EDC allows the use of this land for free. turbines, each generating 3 MW of power.
130 Empowered: Renewable Energy Decade Report 2008-2018 Despite being the Association’s President, Arucan only the Burgos Agro-Industrial School has benefitted from the sidelines in this field, as he mainly farms rice and garlic. The RPT ever since it became available. Josephine Pascual, Josephine Pascual, Principal II of the Burgos additional income, created by the demand for activities like Principal II, notes that the RPT has helped sustain the only Agro-Industrial School located in Burgos, horseback riding in the area, allows him to better provide high school in Burgos, empowering the future of more than Ilocos Norte shares how their institution for his two children. The establishment of the wind farm 800 technical-vocational students. benefits from real property taxes of the BWP. increased the number of tourists visiting Kapurpurawan. At the C46 tower, the quick swish of each wind turbine When hosting a RE source, local economies are expected blade become loud enough to be captured on record and to be enriched. Jonas Tesoro, Municipal Planning and big enough to capture lives. Living in the vicinity of the wind Development Coordinator of Burgos, notes that with the farm has given residents options that have translated into addition of the Burgos Wind Project, local revenues “shot opportunities—with a spectacular view at that. up” just from the collection of taxes such as RPT. In fact,
The Real Property Tax collected from the Burgos Wind Project in Ilocos Norte sustains the education of over Vendors at the Kapurpurawan Rock Formation in Burgos, 800 students at the Burgos Ilocos Norte offer miniature versions of the gigantic EDC wind turbines. Agro-Industrial School.
Empowered: Renewable Energy Decade Report 2008-2018 131 Chapter 03 Empower the People, Generate a Bright Future Achieving energy independence while reducing carbon emissions of sustainable energy development strategies. The information in the atmosphere is the ideal to reach. The enactment of the detailed in Chapter 1 is evidence of those achievements and RA 9513 facilitates the Philippines’ balancing act between the impact of those achievements were shared by the people economic growth and development and the protection of in Chapter 2. health and environment. The RE Law was able to accelerate the Moving forward, the RA 9513 is in full swing, having implemented exploration and development of the country’s renewable and all of its five policy mechanisms. Its salient features empowers indigenous sources in the past ten years through the adoption all RE industry players, including the consumer. Becoming “prosumer” With the policy in place, the RE Law gives the government and all stakeholders a clear direction in the development and promotion of indigenous energy sources. The RE Law gives decision makers a reference for any initiative related to RE policy-making . It also works well with different economic and governance policies that are already in place. Furthermore, the Law also encourages investors to be partners in developing and promoting RE sources in the country. The family of Antoñita and Ricky Bonzo from Sitio The salient features of the RE Law empower all Tagpinasao, Brgy. Salogon, Brooke’s Point, Palawan RE industry players, including the consumer. can now celebrate their daughter’s debut in a livelier way. The law gives back the choice to the people. Through electrification, they have access to lights Consumers need not solely rely on traditional and sounds for cotillion practice. energy sources for their electricity needs. The Net-metering scheme rewards consumers who opt to use clean energy, usually through a rooftop solar PV system by allowing the household to export the surplus electricity that they generate to the distribution grid. The Green Energy Option Program (GEOP) lets the consumer choose RE electricity sources.
Neill Badenas, resident of Sitio Tagpinasao, Brgy. Salogon, Municipality of Brooke’s Point Palawan now enjoys his dream house, thanks to electricity.
134 Empowered: Renewable Renewable Energy Energy Decade Decade Report Report2008-2018 2008-2018 "Mayaman na kami. Nakakainom na kami Improving Economic ng malamig na tubig." (We are rich. We can now and Social Opportunities drink cold water.) Junamarie Napolitano of Sitio Tagpinasao is Electrification can improve quality of life The implementation of RE projects builds happy she now gets to watch TV (ginhawa sa buhay). As attested by the people’s greater awareness on sustainability. The shows and enjoy cold treats. narratives in Chapter 2, electrification ushered solar power plant in San Carlos City, Negros in socio-economic growth in different parts of Occidental played a key role in the city’s drive to the country. be sustainable. Biomass power plants in Nueva Ecija turn some of the local communities’ Students of Sitio Tagpinasao Elementary School wastes into power. in Brooke’s Point, Palawan have significantly improved their performance in school, thanks As partners in the RE industry, the communities to their 40 kW off-grid run-of-river hydropower also enjoy targeted CSR programs that bring in plant. The rural electrification of Sitios New economic and social improvements, including Mabuhay and Mahayag in Davao Occidental has women empowerment. Barangay Bitin in Laguna allowed them to benefit from the PURE. They has greatly benefitted from the CSR programs of can now efficiently process their abaca and the 40-year old geothermal operations in Mak- corn through solar-powered abaca spindlers Ban. Hedcor assisted the women of Barangay and corn shellers, respectively. Rooftop solar PV Lingi-on in Bukidnon by providing equipment to system were able to make living conditions in boost the income of their Women’s Livelihood the island of Caubian in Cebu happier through organization. radio programs and music. The law has also contributed to the creation of Construction and maintenance of the power complementary interventions such as the DOE’s plants entail building or improving local roads, Household Electrification Program (HEP). The which helps the power plants’ host communities HEP establishes rooftop solar PV system and with accessibility. It also enables access to micro-hydro power projects to help reach the green jobs, like in the case of the 68.8 MW target of 100% electrification. Hedcor’s run-of-river hydropower plant. DOE has reported that the RE sector has been generating more than 100,000 green jobs.
Josie Dumagsa, purok leader of Sitio Tagpinasao in Brooke’s Point Palawan, started an ice candy business that became a hit in her Sitio, selling more than 200 units and earning her an income of almost 2,000 pesos per day. She established her sari-sari store when she had enough savings from her ice candy business, made possible by electrification.
Empowered:Empowered: Renewable Renewable Energy Energy Decade Decade Report Report 2008-2018 2008-2018 135 Renewable Energy Sector CHALLENGES and OPPORTUNITIES in the Philippines Even with the implementation of the RA 9513, more work is still needed to develop and utilize renewable energy resources as tools to effectively prevent or reduce harmful emissions. Cross-cutting issues that pose as challenges as well as Opportunities to achieve some of the National Renewable Energy Program (NREP) goals have been identified.
CHALLENGES OPPORTUNITIES
Complex Permitting Process. Before Renewable Too Little Flexibility in the Power System. Solar and Near-Completion of Market Development Support Energy (RE) projects enter into development and wind energy requires responsive regulating reserves Mechanisms for RE. The Feed-in-Tariff (FIT) scheme construction phase, acquisition of numerous because of their variability. Thus, there is a need took effect in 2012 and the Net-Metering system permits, licenses, and certifications are required, for the power infrastructure to be more flexible by in 2013. Consequently, the Renewable Portfolio which require hundreds of signatures. This makes introducing technological innovations that are now Standards (RPS) for both On-Grid and Off-Grid Areas the project endure long development periods and available in the market, such as Battery Energy and Green Energy Option (GEOP) policy mechanisms therefore becomes costly. Whether a project is large Storage System. It is important that any disruption have been promulgated. The establishment of the or small, the number of permits and endorsements in the power supply, “reserves or electricity stored” Renewable Energy Market (REM) and the RE Registrar, are the same. This makes small-scale RE projects, are able to address supply and integrity of the grid. including the development of the PREMS are currently which are supposedly feasible and have least-cost There is a need to establish a policy and regulatory in its final stages. solution, challenging to developers and investors. framework to cover energy transformation brought Several policies have been crafted to address this about by the integration of RE in the power system. With these in place, there will be wider opportunities issue. These policies have also been identified in the for the RE Developers and Generators to market Limited Awareness about RE. While RE resources, succeeding sections. their electricity generation in view of the mandatory specifically hydropower and geothermal, have and voluntary market mechanisms developed for RE Mismatch between RE Power Projects and Network long been utilized in the country even before the development. Infrastructure Development. There have been enactment of RA 9513, people are not yet fully Creation of Green Jobs. completed RE Power Projects ready to interconnect aware of the socio-economic and environmental The RE Law was able to and inject electricity to the grid. However, the benefits of using RE. The knowledge and awareness increase the number of green jobs associated with development of the necessary network facilities to of RE’s long-term benefits is a challenge that needs developing RE resources. As of 2018, the green job integrate the RE Plants in the grid experience delays to be overcome. sector was able to employ 42,388 people alone in the that makes the country unable to benefit from new hydropower sector, in addition to the 59,706 jobs in Natural Disasters. Damages due to climate change RE generation facilities. the remaining RE sectors. In the coming years, these can lead to significant socio-economic losses. Risks figures are expected to increase as RE projects have Lack of Preferential Bias for RE Power Generation. have to be anticipated given the country’s exposure already been awarded to RE developers. RE resources are site-specific compared with to its extreme effects. The challenge for the DOE and Raising Societal Awareness on RE. conventional generating facilities. Hence, there the RE sector is to plan around these risks to ensure The DOE should be a certain degree of preferential bias in energy resilience. continues to raise the awareness and knowledge of the procurement of RE generation. A common the people about RE. As one of the ways forward and issue experienced by RE Developers is the lack planned activity in the RE sector road map, the agency of off-takers or buyers to commence commercial continues to conduct information education campaigns operation. (IECs) to better inform consumers and stakeholders. Moreover, the establishment of RE associations/ organizations also helps in raising societal awareness about renewable energy.
136 Empowered: Renewable Energy Decade Report 2008-2018 Balancing the Energy Trilemma The country's RE achievements in the last ten years show that we are well on our way to accomplishing our goals. The Philippines ranked first in the environmental sustainability dimension in The World Energy Trilemma Index. The country held this status from 2015 to 2017. A high rank in this dimension means that the Philippines had exhibited responsible use of its energy sources and interaction with the environment so that energy harvest can be continued indefinitely. Heightened Resilience. Natural disasters make the RE sector vulnerable but the The DOE continues to work towards improving the energy security and energy equity dimensions in the government has adopted policies to country. Various on-going projects including off-grid, micro-grid, hybrid, and distributed energy systems, improve resilience. The Energy Resiliency contribute towards energy security and accessibility. With the integration of RE in these ongoing projects, the Policy strengthens existing infrastructure dependence on conventional fuel can be significantly reduced. This protects the country from price volatility facilities, implements the build back better of imported fuels. principle in terms of reconstruction and Renewable energy plants are capable of providing clean energy for the country’s growing energy demand (see rehabilitation, improves existing operational illustration below). Solar can supply electricity during peak daytime; geothermal has a high baseload capacity and maintenance practices to ensure that can supply the country’s energy needs on a 24/7 basis; run-of-river systems for hydropower are predictable continuous operations and energy supply, while reservoir-type hydropower systems are capable of supplying energy whenever a sudden demand arises; and develop resiliency standards that will be biomass turns environmental waste into energy; while wind can be deployed even in off-shore areas. used as basis in the future construction of energy facilities. In addition, the Renewable With all the policy strategies and instruments that DOE has been creating and implementing in the renewable energy Energy Safety, Health, and Environment Rules sector, balancing the three energy dimensions of sustainability, security, and equity is attainable. and Regulations (RESHERR) Code of Practice prepares existing RE facilities to prevent and manage risks in operation that would lead to loss of lives and damage to RE infrastructures due to human induced and natural calamities. Daily Supply Profile coming from RE It ensures adequate safety and protection of health, life, property, and the environment MW ENERGY against any hazards. SECURITY Growing Interest in RE Financing from 7000 International Agencies. With the country being a committed party to international THE ENERGY 5000 climate change agreements and treaties, TRILEMMA international funding agencies are keen Philippines #1 in ENVIRONMENTAL ENERGY 3000 on financing RE projects/programs. There SUSTAINABILITY EQUITY are now discussions for developing various 1000 financial instruments to mitigate the risks of RE development. 0100 H 0600 H 1200 H 1800 H 0000 H SOURCE: World energy trilemma index (2018) NOTE: Subject to seasonality in the country from World Energy Council
Empowered: Renewable Energy Decade Report 2008-2018 137 Progressing towards a Green Energy Future
RA 9513 is on its way to harness the country’s full renewable energy resource potential of more Ifugao’s heirloom rice, than 250,000 MW. At 859 awarded RE contracts is a special kind of as of December 2018, the country could reach indigenous rice and is its target of 15,304 MW by 2030. The country’s harvested only once a ocean technology potential alone is at a huge year. This coloured rice 170,000 MW. It is a very promising RE technology possesses outstanding in the country waiting to be tapped and utilized. quality, aroma, texture, With the upcoming seven contracts for ocean RE colour (red/ purple/ technology, the future of RE in the Philippines is violet), taste, and poised to continue its upward trend. nutritional value. By 2030, 35% of the Philippines’s energy supply will come from renewable energy sources. Policymakers and implementers must ensure that Not all residents in Sitio Tagpinasao RA 9513, coupled with the National Renewable have been provided with electricity Energy Program, be fully implemented for the yet, but erecting distribution lines will country’s increasing energy demand to be met. be financially easy enough once funds collected from electricity generation is established. Soon, progress will trickle down to all Sitio Tagpinasao residents. This 40 kW micro-hydropower station of Sitio Tagpinasao, Brgy. Salogon, Brooke’s Point, Palawan is a simple structure made of wood and concrete that houses the water turbine and generator.
138 Empowered: Renewable Renewable Energy Energy Decade Decade Report Report2008-2018 2008-2018 Beyond the Policy
A decade of implementing the Renewable Energy The San Carlos Negros Occidental LGU employees gather together Act of 2008 calls for looking beyond the legal to discuss the green accomplishments of their city. San Carlos framework and technical mechanisms. A special is a multi-awarded destination for its sustainable practices. report released by the UN Intergovernmental Panel on Climate Change (IPCC) on October 2018 set the urgency for nations to shift to renewables if we want to avoid the disastrous climate effects of increased global warming. Sustainability should become a natural response to the current climate. Renewable energy, thus, must be made a way of living. Thankfully, the RE Law and other efforts to make our country more sustainable are already put in place. What we need now more than ever is collective action. More consumers need to opt and ask for RE. Greater development is needed to harness the Philippines’ indigenous RE resources. Stronger program and policy support to the implementation of the RE Law is necessary. By integrating sustainability within the Filipino people’s lifestyle, the number of RE champions- BiGSHOW Champions—among local engineers, legislators and local policy makers, media people, NGOs and the academe will further increase in the coming years.
Students of Sitio Tagpinasao Elementary School in Brgy.Salogon, Municipality of Brooke’s Point, Palawan are now more technologically equipped since they have better access to electricity.
Empowered:Empowered: Renewable Renewable Energy Energy Decade Decade Report Report 2008-2018 2008-2018 139 The future of RE in the Philippines is promising. The Renewable Energy Management Bureau’s (REMB) initiative to bring RE planning at the local government level will help in attaining the goal of 100% electrification for the country and in bringing electricity to the 2.7 million households that have no electricity as of 2018. The establishment of the Renewable Energy Registrar or the Philippine Renewable Energy Market System (PREMS) provides the market for the selling and buying of RE Certificates (REC) among power generators, distributors, and consumers. Now, with an REC, one megawatt-hour of generated renewable energy has market power. A good market signal for investors to enter the Renewable RE Market. The attainment of 15,304 MW installed capacity by the year 2030 will push the percent share of the RE sector close to 35% in the country’s energy generation mix. The DOE is creating policies and systems that enable stakeholders to sustain the Energy momentum of achieving energy independence and energy security, while balancing its commitment to reduce greenhouse gas emissions. Sector Ways New policy directions
Forward Ensure Expand Promote a low energy security energy access carbon future DOE's Strategic Agenda for 2017-2040
Strengthen Implement, monitor, and Advocate the passage collaboration among all integrate sectoral and of DOE's legislative government agencies technological roadmaps agenda involved in energy and action plans
Strengthen Foster stronger consumer welfare international relations and protection and partnerships
140 Empowered: Renewable Energy Decade Report 2008-2018 Ease of Doing In addition to RA 9513's main policy mechanisms, there are also support mechanisms that facilitate RE expansion. During the Business and different stages of RE facility exploration and construction, permitting and licensing documents are required. This is usually where the bottleneck of the process lies. Through the implementation of the RE policy support mechanisms, development and establishment of Efficient Government RE facilities can be made efficient. Some of these major support mechanisms are the following: Service Delivery Act (RA 11032; Looking forward: RE support policies 28 May 2018). This aims to make Energy Efficiency and Conservation Act of 2018 (SB 1531;16 January 2019). EO 30 LGUs adopt a simplified requirement and streamlined procedure that will facilitate prompt SUSTAINABLE results to results to actions or efficient PhP 55.5 electricity PhP 3.4 electricity BILLION cost saving BILLION cost saving 30 resolution of all government EQUIVALENT TO declares 10% • Energy dependency EO transactions. Processing Efficiency = Governments= • Reduced imports time for government amounting to 290.2 ENERGY Improvement Energy agencies and government- STABLE PhP 1,680 Million Metric Ton PROJECTS of annually Efficiency owned and controlled Projects PhP 140 USD 392 = Efficiency NATIONAL corporations is three monthly Million 50% Standard SIGNIFICANCE working days for simple average household USD 1.3 = 100% Efficiency transactions, seven days Million Standard for complex transactions, electricity savings AFFORDABLE over a 12 year period (2018-2030) and 20 working days for highly technical ones. SOURCE: BiCam OKs Energy Efficiency and Conservation Act (2019, January 17) from Philippine News Agency
Policies crafted for resiliency planning and program - Energy resiliency Ease of Doing Business and Efficient Competitive Energy Virtual One Stop Shop compliance policy and The Renewable Energy Safety, Health, and Government Service Delivery Act RE Zone Circular. (EVOSS; RA 11234; 8 March 2019). Environment Rules and Regulations (RESHERR) Code of Practice. (RA 11032; 28 May 2018).
3 RESHERR days ERC Code of Practice regulatory protects lives and EVOSS simple transactions properties surrounding the Urges the Encourages DOEpolicy RENEWABLE ENERGY Efficient Assure the Stability of ZONES FACILITIES to thrive Transactions 7 20 RENEWABLE ENERGY by way of days days RE Online infrastructure POLICIES Complex TECHNICAL transactions transactions
Empowered: Renewable Energy Decade Report 2008-2018 141 RENEWABLE ENERGY ROADMAP
ACCELERATION CREATION OF CONDUCIVE RELIABLE AND EFFICIENT OF RE POSITIONING BUSINESS ENVIRONMENT INFRASTRUCTURE • Assessment of 10 years of RE • Continue performance monitoring • Streamline administrative processes • Support resiliency of RE Law: RE Decade Report and administration of RE Service of RE applications/RE projects systems and facilities • Develop/formulate NREP 2020- Contracts (RESCs) • Support and comply with: > Issuance of DCs 2040 • Conduct policy studies in > ARTA (RA 11032) on Code of Practice • Increase RE investments in: collaboration with ODA: > Executive Order 30 (EPNS) (BiGSHOW) > Enforcement of RE policy > NAMA facility’s enabling > EVOSS and Energy Application • Conduct monitoring/ mechanisms (RPS On-Grid, RPS Off- distributed Solar power in the Monitoring system (EAMS) evaluation of Grid, GEOP, REM, RETF) Philippines (50 MW of Solar • Conduct regular review on compliance to > Revise guidelines and procedures Capacity) effectiveness and efficiency of RE RESHERR and its Code governing the award and > GEF-Funded DREAMS Project policies of Practice administration of distributed and (20,000 HHs) • Conduct technical evaluation of MEDIUM-TERM small-scale RE projects and facilities applications for CEPNS • Continue RE resource assessments • Conduct technical evaluation/ 2019 (Geothermal and Wind) validation and endorsement of FIT - eligible RE projects (End 2019) 2022
2023 • Continue and accelerate the development and implementation • Continue to streamline and improve • Continue support to - of RE projects the administrative processes of RE resiliency policy by RE 2040 • Conduct regular updating of RE resource database applications/RE projects systems and facilities LONG-TERM • Continue conducting regular review • Continue monitoring on effectiveness and efficiency of RE and evaluation policies of compliance to RESHERR and its Code of Practice SOURCE: Renewable energy roadmap (2017) from Department of Energy-Renewable Energy Management Bureau The DOE renewable energy sector roadmap was created to achieve all the objectives of the RE Law. It enlists policy and technology milestones to be implemented throughout a 20-year planning period. Continuous work by the government, through the DOE, towards the full implementation of the RE Law, will help the Philippines achieve economic growth and development through harnessing indigenous Promote and Enhance OTHER energy sources and RD&D Agenda ACTIVITIES minimizing oil imports. And • Strengthen partnership with Program (TEP) • Capacity building for REMB consequently, maintain ARECs • Conduct research on Acidic • Support to the EU-Access to the country’s energy > Issue amendment to Fluids, Low-to-Medium Sustainable Energy Program sustainability efforts to DO2013-12-0019, entitled, Temperature/Enthalpy and > Rural Network Solar protect the health of the “Strengthening the Management Geothermal Heat Pump • Continue conducting people and the environment. and Operations of the Affiliated • Conduct research and IEC to attain social and Indeed, the Philippines Renewable Energy Centers promote direct use/non-power environmental acceptability can be the next big show (ARECS) in the Philippines” application for development of RE projects in providing reliable, • Continue conducting RE • Render support services to • Draft policy/guidelines on affordable, sustainable, and technology research and various Task Forces, Working the utilization of geothermal environment-friendly energy sources. development studies Groups, etc (i.e.: PALECO, energy for direct use/non- • Support Total Electrification Audit, PAAT) power application Increase renewable installed energy capacity • Strengthen the cooperation acidic fluids, low to medium • Continuing capacity with, and management and temp/enthalpy resources and building for REMB to 15,304 MW operation of ARECS Geothermal Heat Pump • Continue conducting • Continue conducting RE • Implementation and promotion IEC to attain social OVERALL OBJECTIVE BY 2030 technology research and of emerging technology: and environmental development studies Study and promotion of direct acceptability of RE • Feasibility study on emerging use/non-power application policies, programs and geothermal technology such as of geothermal energy projects Enhance Geothermal System, development DOE Contributes to Achieving SDG 7
The UNDP reports that efforts to encourage clean energy has Ten years from now or by 2030, power sector and remove barriers the Philippines targets compliance in the development, utilization and resulted in more than 20% of global power being generated from with SDG 7 or Affordable, Reliable, commercialization of RE in the country. RE sources (2011). Sustainable and Modern Energy. To help achieve this, the project Local Government Units (LGU), in contributes in strengthening the capacity HH Electrification partnership with Distribution Utilities of partners like LGUs to integrate RE (DUs) and Electric Cooperatives (EC), policies and plans into their legislative and Major Island Potential Served Unserved % Household have important roles to play to meet executive agenda and to work together Group Households Households Households Electrification this 2030 challenge. LGUs and DUs/ with Electric Cooperatives, investors and ECs are instrumental in the preparation Private Developers in the attainment of 1 2 3 4 and implementation of policies, 100% electrification through the use of programs and projects that will renewable energy sources. Luzon 13,318,261 13,833,515 - 100.00% encourage investments and protect RE sources to ensure access to affordable The SDG 2030, barely 10 years Mindanao 5,265,012 4,117,747 1,147,265 78.21% and modern energy services. from now, is another milestone In 2016, the DOE and NEDA, in to prepare for. Visayas 4,401,698 4,142,520 259,178 94.11% partnership with the GEF and the UNDP, signed an agreement to implement The DREAMS Project is part of Grand Total 22,984,971 22,093,782 891,189 96.12% the Development for Renewable the country’s contribution to Energy Mainstreaming and Market NOTE: Sustainability (DREAMS) Project. the Global Objective of SDG 7: 1 - Philippine Statistics Authority - 2015 Population Census (fixed) DREAMS aims to reduce GHG in the Affordable and Clean Energy! 2 - NEA December 2018 Status of Energization Report for ECs; Distribution Development Plan Household Details for non ECs 3 - Computation: Unserved Households = Potential Households - Served Households 4 - Computation: % Household Electrification = Served Households/Potential Households
SOURCE: LFP-Total electrification program 2019 (n.d.) from the Department of Energy-Renewable Energy Management Bureau
144 Empowered: Renewable Energy Decade Report 2008-2018 Definition of Terms (as used in the Philippine Republic Act 9513)
Biomass energy systems - refer to energy systems which use biomass resources to produce heat, steam, mechanical power or electricity through either thermochemical, biochemical or physico-chemical processes, or through such other technologies Biomass resources - refer to non-fossilized, biodegradable organic material originating from naturally occurring or cultured plants, animals and micro-organisms, including agricultural products, by-products and residues such as, but not limited to, biofuels except corn, soya beans and rice but including sugarcane and coconut, rice hulls, rice straws, coconut husks and shells, corn cobs, corn stovers, bagasse, biodegradable organic fractions of industrial and municipal wastes that can be used in bioconversion process and other processes, as well as gases and liquids recovered from the decomposition and/or extraction of non-fossilized and biodegradable organic materials Co-generation systems - refer to facilities which produce electrical and/or mechanical energy and forms of useful thermal energy such as heat or steam which are used for industrial, commercial heating or cooling purposes through the sequential use of energy Department of Energy (DOE) - refers to the Philippine government agency created pursuant to the Republic Act No. 7638 whose functions are expanded in Republic Act No. 9136 and further expanded in Republic Act 9513 Department of Environment and Natural Resources (DENR) - refers to the Philippine government agency created pursuant to Executive Order No. 192 Distributed generation - refers to a system of small generation entities supplying directly to the distribution grid, any one of which shall not exceed one hundred kilowatts (100 kW) in capacity Distribution Utility (DU) - refers to any electric cooperative, private corporation, government-owned utility or existing LGU which has an exclusive franchise to operate a distribution system in accordance with its franchise and Republic Act No. 9136 Energy Regulatory Commission (ERC) - refers to the independent quasi-judicial regulatory agency created pursuant to Republic Act No. 9136 Geothermal Energy Systems - refer to machines or other equipment that converts geothermal energy into useful power Geothermal Resources - refer to mineral resources, classified as renewable energy resource, in the form of: (i) all products of geothermal processes, embracing indigenous steam, hot water, and hot brines; (ii) steam and other gases, hot water, and hot brines resulting from water, gas, or other fluids artificially introduced into geothermal formations; (iii) heat or associated energy found in geothermal formations; and (iv) any by-product derived from them Green Energy Option - refers to the mechanism to empower end-users to choose renewable energy in meeting their energy requirements Grid - refers to the high voltage backbone system of interconnected transmission lines, substations, and related facilities, located in each of Luzon, Visayas, and Mindanao, or as may otherwise be determined by the ERC in accordance with Republic Act No. 9136 Hybrid Systems - refer to any power or energy generation facility which makes use of two or more types of technologies utilizing both conventional and/or renewable fuel sources, such as, but not limited to, integrated solar/wind systems, biomass/fossil fuel systems, hydro/fossil fuel systems, integrated solar/biomass systems, integrated wind/fossil fuel systems, with a minimum of ten (10) megawatts or ten percent (10%) of the annual energy output provided by the RE component Hydroelectric Power Systems or Hydropower Systems - refer to water-based energy systems which produce electricity by utilizing the kinetic energy of falling or running water to turn a turbine generator Definition of Terms (as used in the Philippine Republic Act 9513)
Hydroelectric Power Resources or Hydropower Resources - refer to water resources found technically feasible for development of hydropower projects which include rivers, lakes, waterfalls, irrigation canals, springs, ponds, and other water bodies Missionary Electrification -refers to the provision of basic electricity service in unviable areas with the aim of bringing the operations in these areas to viability levels National government share - refers to the amount due to the national government from the exploitation, development and utilization of naturally-occurring renewable energy resources Net Metering - 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 Non-power applications - refer to renewable energy systems or facilities that produce mechanical energy, combustible products such as methane gas, or forms of useful thermal energy such as heat or steam, that are not used for electricity generation, but for applications such as, but not limited to, industrial/commercial cooling, and fuel for cooking and transport Ocean Energy Systems - refer to energy systems which convert ocean or tidal current, ocean thermal gradient or wave energy into electrical or mechanical energy Off-Grid Systems - refer to electrical systems not connected to the wires and related facilities of the On-Grid Systems of the Philippines On-Grid System - refers to electrical systems composed of interconnected transmission lines, distribution lines, substations, and related facilities for the purpose of conveyance of bulk power on the grid of the Philippines Renewable Energy Market (REM) - refers to the market where the trading of the RE certificates equivalent to an amount of power generated from RE resources is made Renewable Portfolio Standards - refer to a market-based policy that requires electricity suppliers to source an agreed portion of their energy supply from eligible RE resources Renewable Energy Resources (RE Resources) - refer to energy resources that do not have an upper limit on the total quantity to be used. Such resources are renewable on a regular basis, and whose renewal rate is relatively rapid to consider availability over an indefinite period of time. These include, among others, biomass, solar, wind, geothermal, ocean energy, and hydropower conforming with internationally accepted norms and standards on dams, and other emerging renewable energy technologies Rural Electrification -refers to the delivery of basic electricity services, consisting of power generation, sub-transmission, and/or extension of associated power delivery system that would bring about important social and economic benefits to the countryside Solar Energy - refers to the energy derived from solar radiation that can be converted into useful thermal or electrical energy Solar Energy Systems - refer to energy systems which convert solar energy into thermal or electrical energy Wind Energy - refers to the energy that can be derived from wind that is converted into useful electrical or mechanical energy Wind Energy Systems - refer to the machines or other related equipment that convert wind energy into useful electrical or mechanical energy Wholesale Electricity Spot Market (WESM) - refers to the wholesale electricity spot market created pursuant to Republic Act No. 9136 Sources Cited
Unless otherwise specified, all data and Chapter 1 information used in this Decade Report were taken from the data base of REMB Overview and from other reference materials, Macroeconomic Policy Regimes in the Philippines (2013) by Cayetano Paredanga, Jr. for Bangko Sentral ng Pilipinas presentations and publications from Renewable Energy Market the Department of Energy. Some of these materials may be accessed from Overview on the Renewable Energy Market (2018, August) from Philippine Electricity Market Corporation www.doe.gov.ph Overview of the Renewable Energy Market (2019, January 07) by Jalocon, C.L.C. Net metering Rules enabling the net-metering program for renewable energy (2013) from Energy Regulatory Commission
Chapter 3
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Retrieved March 21, theguardian.com/environment/2011/mar/03/1970s-oil-price-shock 2019 from https://www.worldenergy.org/wp-content/uploads/2016/10/ Full-report_Energy-Trilemma-Index-2016.pdf Official Gazette. (1977). Presidential Decree No, 1206, s. 1977. Retrieved April 29, 2019, from http://www.officialgazette.gov.ph/1977/10/06/presidential- World Wildlife Fund. (2017). Renewables best way to power Philippine decree-no-1206-s-1977/ development. Retrieved April 29, 2019, from https://wwf.org.ph/what-we- do/climate/renewables/renewables-to-power-ph-dev/ Ombion, K. G. (2018, October 26). Ombion: Renewable energy uptrends. Sunstar Bacolod. Retrieved April 30, 2019, from https://www.sunstar.com.ph/ article/1771083 Paredanga, C. (2013). Macroeconomic Policy Regimes in the Philippines. Bangko Sentral ng Pilipinas. Retrieved from http://www.bsp.gov.ph/events/pcls/ downloads/2013s2/BSP_5a_paderanga_paper.pdf Appendices Appendix A: What have been achieved so far? Renewable Energy Market (REM) Feed-in-Tariff (FIT) System 1. Passage of REM rules and Department Circular on the Promulgation of REM rules 1. Issuance of FIT Rules (2010) 2. Initiation and early development of the Philippine Renewable Energy Market Systems for the handling of REC transaction allocation and compliance to RPS 2. Approval of FIT rates (2012) 3. Issuance of FIT Allowance (FIT-All) 4. Payment and Collection Guidelines (2013) Appendix B: Policy Issuances 5. Approval of Fit-All Rates at 0.0406 Php/kWh (2014-2015) DEPARTMENT CIRCULAR NO. DC2018-01-0001 6. Effectivity of newly approved FIT-All Rates (2015) Adoption of Energy Resiliency in the Planning and Programming of the Energy Sector to 7. Issuance of FIT Rates for Solar and Wind (2015) Mitigate Potential Impacts of Disasters 8. Extension of FIT System to biomass until end-2019 and ROR Hydro installation target DEPARTMENT CIRCULAR NO. DC2018-01-0002 fully subscribed Adopting Policies for the Effective and Efficient Transition to the Independent Market Net-Metering System Operator for the Wholesale Electricity Spot Market 1. ERC issued net-metering rules and interconnection standards (2015) DEPARTMENT CIRCULAR NO. DC2018-01-0003 2. 2,232 Qualified end-Users were registered with a total rated capacity of 17,569.6 kW (as of December 2018) Adopting and Prescribing the Policy for the Competitive Selection Process in the Procurement by the Distribution Utilities of Power Supply Agreement for the Captive 3. On-going policy enhancement / technical assistance study on distributed PB in Market collaboration with USAID Clean Power Asis, National Renewable Energy Laboratory (NREL), Lawrence Berkeley National Laboratory (LBNL), and Chulalongkorn University DEPARTMENT CIRCULAR NO. DC2018-01-0004 in Thailand Prohibiting the Sale and Distribution of Small-sized 2.7 Kg Capacity and Below LPG Renewable Portfolio Standards (RPS) Cylinders Without the Required “For Outdoor Use Only” Marking in Addition to the Usual Mandatory Markings for LPG Cylinders, and for Other Purposes 1. Issuance of DC 2017-12-0015: Renewable Portfolio Standards on On-Grid Areas (2017) DEPARTMENT CIRCULAR NO. DC2018-01-0005 2. Issuance of DC 2018-08-0024: Renewable Portfolio Standards on Off-Grid Areas Prescribing the Guidelines Recognizing the Rights of Indigenous Cultural Communities (2018) (ICCs)/Indigenous Peoples (IPs) in their Ancestral Domains and Access to the Financial 3. IEC/Roll-Out Program for the Mandated Participants Benefits as Host Communities under the ER 1-94 Program and Rule 29 (A) ofthe 4. Data gathering for determination of the RPS requirements Implementing Rules and Regulations of Republic Act No. 9136, Otherwise Known as “Electric Power Industry Reform Act of 2001” 5. Data gathering for determination of the RPS requirements 6. Consolidation and reconciliation of data submitted by the Mandated Participants DEPARTMENT CIRCULAR NO. DC2018-01-0006 (Distribution Development Plan data vis-à-vis RPS data submission) Omnibus Rules and Regulations Governing Tax-Exempt Importations for Petroleum 7. Hands-on training on Simplified Planning Tool (SPT) for Mandated Participants (RPS Operations under Presidential Decree No. 87, as amended and Coal operations under for Off-Grid areas) Presidential Decree No. 972, as amended Green Energy Option Program (GEOP) DEPARTMENT CIRCULAR NO. DC2018-01-0007 1. Passage of Department Circular on the rules and guidelines on Green Energy Option Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules Program and Market Manual on Dispatch Protocol for the Implementation of Enhancements to 2. Drafted GEOP Supply Contract Template WESM Design and Operations 3. Drafted Guidelines for Issuance of Operating Permits DEPARTMENT CIRCULAR NO. DC2018-01-0008 DEPARTMENT CIRCULAR NO. DC2018-01-0017 Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules Market Manuals on Billing and Settlement and Load Forecasting Methodology for the and Market Manuals (Transitory Provisions for the Implementation of WESM in Mindanao) Implementation of Enhancements to WESM Design and Operations DEPARTMENT CIRCULAR NO. DC2018-01-0018 DEPARTMENT CIRCULAR NO. DC2018-01-0009 Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules Adopting Further Amendments to the Retail Rules and Its Market Manual on Metering and Market Manual on Procedures for Changes to the WESM Rules, Retail Rules and Standards and Procedures for the Implementation of Enhancements to WESM Design Market Manuals and Operations DEPARTMENT CIRCULAR NO. DC2018-01-0019 DEPARTMENT CIRCULAR NO. DC2018-01-0010 Promulgating the Rules and Guidelines Governing the Establishment of the Green Energy Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules, Option Program Pursuant to the Renewable Energy Act of 2008 Retail and Retail Market Manual on Metering for Clarifications on Retail Market Integration DEPARTMENT CIRCULAR NO. DC2018-01-0020 DEPARTMENT CIRCULAR NO. DC2018-01-0011 Prescribing the Guidelines for the Development and Utilization of Small or Sub-Commercial Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Deposits of Natural Marsh Gas or Methane Gas in the Philippines, and Granting Gratuitous Market Manual on Market Operator Information Disclosure and Confidentiality for the Permits Thereof Implementation of Enhancements to WESM Design and Operations DEPARTMENT CIRCULAR NO. DC2018-01-0021 DEPARTMENT CIRCULAR NO. DC2018-01-0012 Providing for the Amendments to Rule 29 Part (A) of the Implementing Rules and Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Market Regulations of Republic Act No. 9136 Manuals on Price Determination Methodology and Constraint Violation Coefficients and DEPARTMENT CIRCULAR NO. DC2018-01-0022 Pricing Re-Run for the Implementation of Enhancements to WESM Design and Operations Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules DEPARTMENT CIRCULAR NO. DC2018-01-0013 and Market Manuals on the Participation of Battery Energy Storage Systems and Pumped- Implementing Rules and Regulations of Executive Order No. 30, series of 2017, Creating Storage Units in the WESM the Energy Investment Coordinating Council in Order to Streamline the Regulatory DEPARTMENT CIRCULAR NO. DC2018-01-0023 Procedures Affecting Energy Projects Promulgating the Rules and Guidelines Governing the Establishment of the Renewable DEPARTMENT CIRCULAR NO. DC2018-01-0014 Portfolio Standards for Off-Grid Area Creating the Energy Task Force Election to Ensure Adequate and Reliable Energy Supply DEPARTMENT CIRCULAR NO. DC2018-01-0024 Before, During and After Elections Prescribing the Rules Governing the Review and Evaluation of Direct Connection DEPARTMENT CIRCULAR NO. DC2018-01-0015 Applications of Industrial, Commercial and Other Electricity End-Users Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules DEPARTMENT CIRCULAR NO. DC2018-01-0025 and Market Manuals for the Implementation of Enhancements to WESM Design and Operations Adopting Framework for Uniform Monthly Electricity Bill Format DEPARTMENT CIRCULAR NO. DC2018-01-0016 DEPARTMENT CIRCULAR NO. DC2018-01-0026 Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules Establishment and Development of Competitive Renewable Energy Zones in the Country and Market Manual on Dispute Resolution Acknowledgements The Department of Energy - Renewable Energy Management Bureau wishes to acknowledge the unwavering support of the Global Environment Facility (GEF) and United Nations Development Programme (UNDP) Development for Renewable Energy Mainstreaming and Market Sustainability (DREAMS) Project in preparing the “EMPOWERED: Renewable Energy Decade Report”. This coffee table book was developed through the generous data sharing and assistance in community coordination by the following partners and stakeholders: AP Renewables Inc. (APRI), Energy Development Corporation (EDC), Hedcor Bukidnon, Inc. (HBI), Ifugao Electric Cooperative (IFELCO), Local Government of Brooke’s Point in Palawan, Maibarara Geothermal Inc. (MGI), Philippine Geothermal Production Company, Inc. (PGPC), Provincial Government of Ifugao, San Carlos Solar Energy. Inc. (SaCaSol), San Jose City I Power Corporation, and Western Philippines University-Affiliate Renewable Energy Center (WPU-AREC). This resource was also developed with the editorial and design support from Asia Society for Social Improvement and Sustainable Transformation (ASSIST). DOE-REMB also takes this opportunity to recognize all the men and women behind the development of this celebration publication of Renewable Energy at 10 years!
The DOE-REMB is set to release the following RE publications soon! Compendium for RE Rules and Law National Renewable Energy Program 2020-2040 This RE Decade Report was prepared with the support of the Development for Renewable Energy Mainstreaming and Market Sustainability (DREAMS) Project. The DREAMS project seeks to reduce green house gas emissions from the power sector, promote and facilitate the commercialization of RE markets, increase investments in the RE industry, and institutionalize local energy planning that focuses on RE sources. The project is being implemented by the Renewable Energy Management Bureau of the Department of Energy (DOE) in partnership with Global Environment Facility (GEF) and the United Nations Development Programme (UNDP).
A Celebration Publication of RE@10