PHILIPPINES RENEWABLE ENERGY OUTLOOK

Transcription

1 PHILIPPINES RENEWABLE ENERGY OUTLOOK FORTUNATO S. S. SIBAYAN Chief, Chief, Solar Solar & Wind Wind Energy Energy Management Management Division Division Department Department of of Energy Energy ASEAN Countries Presentation on Renewable Energy BITEC, Bangkok, Thailand June 3, 201

2 PRESENTATION OUTLINE I. Energy Sector Situationer II. Renewable Energy Roadmap III. Regulatory Framework

3 Part 1 ENERGY SECTOR SITUATIONER

4 2010 PRIMARY ENERGY MIX Total Energy = MTOE Self-Sufficiency = 57.5% RE = 40%

5 POWER SECTOR 2010 INSTALLED CAPACITY Hydro 20.78% Biomass 0.24% Solar 0.01% Wind 0.20% Coal 29.75% Geothermal 12.02% Natural Gas 17.49% Oil Based 19.52% Installed Capacity = 16,359 MW RE = 33.25% (5,439 MW) Source of Data: GenCos 2010 Monthly Operation Report, 2010 NGCP Daily Operation Report Available Capacity Excluding off-grid generators. Newly commissioned plants in 2010 include the 3 x 82-MW Cebu Energy Development Corporation s Coal power plant in Cebu, 2 x 100 KSPC Coal in Cebu, 2 x 182 MW PEDC Coal in Panay and 42-MW Sibulan Hydroelectric Plant in Santa Cruz, Davao del Sur.

6 POWER SECTOR 2010 GROSS POWER GENERATION Geothermal 14.66% Biomass Hydro 0.04% 11.52% Solar 0.002% Wind 0.09% Coal 34.40% Natural Gas 28.81% Oil Based 10.48% Gross Generatiopn = 67,743 GWh Self-sufficiency = 38,948 GWh (62.89 %) RE = 26.31% (17,823 GWh) Note: Generation data includes grid connected, embedded, and off-grid generators

7 Power Supply and Demand Outlook (Draft PDP ) 2030) GRID Dependable Capacity (MW) Peak Demand (MW) 2008 Ave. Annual Growth Rate (%) Committed Capacity (MW) Critical Period Required Add'l Capacity (MW) Indicative Capacity (MW) LUZON 10,030 6, ,900 3,449 VISAYAS 1,505 1, , 182 MINDANAO 1,682 1, , PHILIPPINES 13, ,354 16,550 4,211 Dependable Capacity is based on the reports of power plant owners s (NPC, NPC-IPPs, Non-NPC NPC IPPs). Peak Demand is based on the System Operator (SO) recorded peak demand d by grid for the year. Average Annual Growth Rate is based on the energy and demand forecasts o of the distribution utilities as indicated in their respective Distribution Development Plan (DDP). Critical Period is the year when existing generating capacity will not be able to meet the peak demand and the required reserve margin (23.4% above the peak demand for Luzon and Visayas, s, 21% above peak demand in Mindanao). Required Additional Capacity is the necessary generating capacity y (on top of the committed) to meet the system requirement (including reserve). These are indicative capacities which are open for private sector investments.

8 Luzon Power Supply and Demand Outlook Luzon Power Supply and Demand Outlook (Draft PDP 2009 (Draft PDP ) 2030) equireddditionalap equireddditionalap equireddditionalap equireddditionalap ommitted ommitted ommitted ommitted xistingapacity xistingapacity xistingapacity xistingapacity equiredeserveargin equiredeserveargin equiredeserveargin equiredeserveargin eakemand eakemand eakemand eakemand alaya alaya alaya alaya etirement etirement etirement etirement 600oal 600oal 600oal 600oal ired ired ired ired ower ower ower ower acan acan acan acan acan acan acan acan uongridneedsatotaladditional uongridneedsatotaladditional uongridneedsatotaladditional uongridneedsatotaladditional capacityof11900from2011to2030 capacityof11900from2011to2030 capacityof11900from2011to2030 capacityof11900from2011to MW

9 Visayas Power Supply and Demand Outlook Visayas Power Supply and Demand Outlook (Draft PDP 2009 (Draft PDP ) 2030) equireddditionalap equireddditionalap equireddditionalap equireddditionalap ommitted ommitted ommitted ommitted xistingapacity xistingapacity xistingapacity xistingapacity equiredeserveargin equiredeserveargin equiredeserveargin equiredeserveargin eakemand eakemand eakemand eakemand etirement etirement etirement etirement 240oal 240oal 240oal 240oalired ired ired ired ebunergyev ebunergyev ebunergyev ebunergyevtower tower tower tower orp orp orp orp 160oal 160oal 160oal 160oaliredanay iredanay iredanay iredanay nergyev nergyev nergyev nergyevtorp torp torp torp alcon alcon alcon alcon 175anayiomass 175anayiomass 175anayiomass 175anayiomass 20asuloeo 20asuloeo 20asuloeo 20asuloeo isayasgridneedsatotaladditional isayasgridneedsatotaladditional isayasgridneedsatotaladditional isayasgridneedsatotaladditional capacityof2onwardsto2030 capacityof2onwardsto2030 capacityof2onwardsto2030 capacityof2onwardsto2030 MW

10 Mindanao Power Supply and Demand Outlook (Draft PDP ) 2030) 4,500 4,000 3,500 3, MW Sibulan Hydro 8 MW Cabulig Hydro 50 MW Mindanao Geo MW 2,500 2,000 1,500 1, Required Additional Cap , Committed Existing Capacity 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682 Required Reserve Margin Peak Demand 1,359 1,421 1,483 1,549 1,620 1,692 1,769 1,852 1,942 2,031 2,125 2,223 2,326 2,434 2,546 2,664 2,787 2,916 3,050 3,191 3,339 3,493 Mindanao grid needs a total additional capacity of 2,500 MW onwards to 2030

11 RE RESOURCES Geothermal Resource 1,200 MW Hydropower -10,500 MW Wind resources 76,600 MW Micro-hydro untapped vast potential Solar Energy Average potential 5kWh/m 2 /day Ocean energy - 170,000 MW Biomass (bagasse) total potential of MW

12 Part 2 RE ROADMAP

13 RE ROADMAP ( ) ENSURING STABLE AND QUALITY SUPPLY OF ENERGY Intensify RE Development and Utilization RE Law, RE Subsidiary, Technology Roadmap & One-stop shop 2010 Small capacity RE projects are added to the grid; big RE projects are in the pipeline Emergence of ocean energy projects, e.g. OTEC, wave, marine current and tidal Commerciali- zation of ocean energy technologies IMPROVE RE POLICIES AND PROGRAMS DOUBLE RE CAPACITY (5,300 MW)

14 Part 3 REGULATORY FRAMEWORK

15 REPUBLIC ACT 9513 Renewable Energy Act of 2008 AN ACT PROMOTING THE DEVELOPMENT, UTILIZATION AND COMMERCIALIZATION OF RENEWABLE ENERGY RESOURCES AND FOR OTHER PURPOSES

16 OBJECTIVES Fiscal incentives Non-fiscal incentives Institutional support

17 RE Developers (New & Existing) RE Suppliers, Fabricators, Manufacturers 7 year Income Tax Holiday (ITH) 7 year Income Tax Holiday (ITH) 10 year Duty-free Importation of RE Machinery, Equipment and Materials 1.5% Special Realty Tax Rates on Equipment and Machinery FISCAL INCENTIVES 10 year Tax and Duty-free Importation of Components, Parts and Materials 7 year Net Operating Loss Carry-Over 10 % Corporate Tax Rate after ITH Accelerated Depreciation Zero Percent Value-Added Tax Rate Cash Incentive of Renewable Energy Developers for Missionary Electrification Tax Exemption of Carbon Credits 100% Tax Credit on Domestic Capital Equipment and Services Exemption from the Universal Charge Payment of Transmission Charge Hybrid and Cogeneration Systems Zero-rated value added tax transactions 100% Tax Credit on Domestic Capital Components, Parts and Materials Financial Assistance program

18 FISCAL INCENTIVES Incentives for Farmers Engaged in the Plantation of Biomass Resources Duty-free importation and be exempted from Value- Added Tax (VAT) on all types of agricultural inputs, equipment and machinery Tax Rebate for Purchase of RE Components

19 NON-FISCAL INCENTIVES Renewable Portfolio Standard (RPS) refers to a market-based policy that requires electricity suppliers to source an agreed portion of their energy supply from eligible RE resources; Feed-In Tariff System refers to price premium for the wind, solar, ocean, run- of-river hydropower and biomass generated electricity;

20 NON-FISCAL INCENTIVES Green Energy Option to establish a program which provides the end-users the option to choose RE resources as their sources of energy; Net Metering for Renewable Energy refers to a system, appropriate for distributed generation, in which a distribution grid user has a two- way connection to the grid and is only charged for his net electricity consumption and is credited for any overall contribution to the electricity grid;

21 INSTITUTIONAL SUPPORT National Renewable Energy Board Renewable Energy Management Bureau RE Trust Fund Financial Assistance Program

22 Awarded Projects RESOURCE NO. OF PROJECT Biomass 16 (26 Developers) Geothermal 21 (11 Developers) CAPACITY (MW) ESTIMATED COST* (Million US$) ,579 12, Solar Hydro 126 (32 Developers) Ocean 3 (2 Developers) Wind 44 (8 Developers) Total 211 4,615 12, * - Pre-development cost

23 Pending Applications RESOURCE NO. OF PROJECT CAPACITY (MW) Biomass 19 (15 Developers) Geothermal 18 (7 Developers) Solar 33 (6 Developers) Hydro 32 (4 Developers) ,854 Ocean - - Wind 63 (21 Developers) 1,144 Total 139 3,582

24 WAY FORWARD Development of guidelines for the following mechanisms: Renewable Portfolio Standard Net metering RE Trust Fund Feed-in Tariff Rates

25 PROPOSED FIT RATES RESOURCE US$/kWH FIT RATES PhP/kWH INSTALLATION TARGET (MW) Solar PV (ground mounted) Wind (on-shore) Run-of of-river hydro Ocean (OTEC) Biomass

26 FORTUNATO S. SIBAYAN FORTUNATO S. SIBAYAN Chief Solar & Wind Energy Management Division Department of Energy Energy Center, Merritt Road, Fort Bonifacio Taguig City, Metro Manila Trunkline: (+632) local 310 Telefax : (+632)