Symposium: Renewable Energies in the Philippines and Germany Business Opportunities in Climate Change Mitigation 8 October 2009 VINCENT S. PÉREZ President and CEO, Alternergy Chairman, Merritt Partners Chairman, WWF – Philippines

Over 4,000 MW of geothermal potential About 700 MW of commercially exploitable wind resource Estimated hydropower resource potential of 13,000 MW Over 500 MW of biomass power potential Largest producer of coconut oil Ranks 10 th in world sugarcane production PHILIPPINES: Huge RE Potential 2

World’s 2 nd largest producer of geothermal energy Largest wind power producer in Southeast Asia Over 3,000 MW of installed hydropower generation capacity Hosts the: –First solar wafer fabrication plant in SEA –Largest grid-connected PV plant in the developing world –First continuous biodiesel plant in SEA –First sugarcane-based ethanol and cogeneration project in SEA PHILIPPINES: A significant RE producer 3

Over 2,000 MW of installed geothermal generation capacity PHILIPPINES: A significant RE producer Mw MakBan 275 Mw Tiwi 100 Mw BacMan 104 Mw Mindanao 198 Mw S. Negros 708 Mw Leyte World’s largest wet steam field

First and biggest wind farm in Southeast Asia PHILIPPINES: A significant RE producer 5 33 MW NorthWind plant in Bangui Bay, Ilocos Norte

3,367 MW of installed hydropower capacity, representing 21% of the country’s total generation capacity PHILIPPINES: A significant RE producer 6... Agus Binga Pantabangan Masiway AmbuklaoMagat

The biggest grid connected PV plant in the developing world PHILIPPINES: A significant RE producer 7... CEPALCO’s 950kW Centralized PV plant Cagayan de Oro

The first continuous biodiesel plant in Southeast Asia PHILIPPINES: A significant RE producer 8... CEPALCO’s 950kW Centralized PV plant Cagayan de Oro CHEMREZ’s 100 million liter-per-year biodiesel plant

Signed on December 16, 2008 Took effect on January 30, 2009 RE Law: Engine of Growth 9

New RE Service Contracts Awarded on 14 September 2009 WindCapacityLocationArea (has) Energy Logics Philippines, Inc.120 MWPasuquin-Burgos, Ilocos Norte2,974 EDC86 MWBurgos, Ilocos Norte1,296 PetroEnergy Resources20 MW 30 MW Sual, Pangasinan Nabas, Aklan 1,701 2,025 Northern Luzon UPC Asia Corp.50 MWPagudpud, Ilocos Norte 1,134 HydroCapacityLocation Oriental Energy & Power Generation Co. 18 MWMadalag, Aklan BiomassCapacityLocation Mariwasa Siam Ceramics45 MWSt. Tomas, Batangas Surge of RE Investments 10

Wind 54 MW Guimaras Wind project by Trans-Asia Oil and Energy Alternergy ties up with Eurus Energy of Japan and East West Power of Korea More RE Investments in the Pipeline Alternergy signs agreement with Eurus of Japan and EWP of Korea to develop wind projects Photo Source: Alternergy 11

Solar US$ 20 million expansion of the solar wafer slicing facility in Batangas by First Philippine Electric Corp. and SunPower Manufacturing Ltd. More RE Investments in the Pipeline High-efficiency solar cells and panels produced by SunPowers’ 400 MW Batangas and 100 MW Laguna plants 12

Biomass San Carlos Bioenergy’s integrated bioethanol and co-generation plant ready Roxas Holdings bioethanol plant (3 million liters/month capacity) in La Carlota, Negros to start operations in February 2010 More RE Investments in the Pipeline Photo Source: James G. Toga/NDB photo San Carlos 30 million liter-per-year bioethanol and 8 MW cogeneration plant inaugurated on 4 September

Biomass 8 MW Montalban Methane Power Project started operations on 2008; plans to build two more facilities within Meralco franchise area More RE Investments in the Pipeline Photo Source: RP’s first landfill gas-to-power project 14

National Renewable Energy Board Finally Convened NREB members appointed and took oath of office on 14 September 2009 Regulatory Initiatives Move Forward 15

National Renewable Energy Board Finally Convened NREB members appointed and took oath of office on 14 September Regulatory Initiatives Move Forward MembersSector Arturo N. AguilarChairman Vincent S. PerezElected NREB Vice – Chairman NGO Representative (Chairman, WWF-Philippines) Jose Venancio BatiquinRE Developers (President, Luzon Corp.) Benjamin CariasoPrivate Distribution Utilities (EVP and CEO, Aboitiz Energy Corp.) Reynaldo DavidGovernment Financial Institutions (Pres. and CEO, Development Bank of the Phils.) Electricity SuppliersStill to be appointed Electric CooperativesStill to be appointed Other MembersDTI, DOF, DENR, DA, DOST, NPC, PNOC, PEMC 16

National Renewable Energy Board Finally Convened First NREB Meeting held on 17 September 2009 Elected Mr. Vincent S. Perez as Vice–Chairman Created 4 Sub-Committees Approved structure and staffing pattern of NREB Technical Secretariat Agreed to meet bi-monthly to meet the required deadlines of key outputs –Regular meeting every other Thursday of the month starting on 1 October 2009 Regulatory Initiatives Move Forward Sub-CommitteeChairman RPS and FITNGO Member (Vincent S. Perez) Net MeteringDOE Member Green Energy OptionElectricity Supplier Member Renewable Energy Trust FundDOF Member 17

Key Issues in the Drafting of Rules Favorable FIT System Boost competitiveness of intermittent RE (wind, solar) Beef up activities from exploration to actual commercial development Provide certainty to investors (local and foreign) Transmission and Distribution Connection Guaranteed access Must provide grid connections and related support services Active transmission planning among all sectors necessary Next Steps: Private Sector Views 18

Key Issues Access to Financing Increased flow, use and availability of funds Flexible terms to allow SMEs to secure funds Active involvement of financing community Provision for RE investments on banks’ portfolio Creation of one-stop-shop to facilitate access to funds Capacity Building Continuous awareness and education campaigns Electric Cooperatives Assistance in securing off-take arrangements Proposed template of Power Supply Contracts for RE Financing Community Workshops and training courses to increase understanding of banks on RE industry Technology and Service Providers Technical assistance to develop and innovate RE technologies Continued research and development of pilot projects Next Steps: Private Sector Views 19

Symposium: Renewable Energies in the Philippines and Germany Business Opportunities in Climate Change Mitigation 8 October 2009 VINCENT S. PÉREZ President and CEO, Alternergy Chairman, Merritt Partners Chairman, WWF – Philippines