Technology Development in Renewable Energy Bert Dalusung Preferred Energy Inc. (PEI) (632) 631-2826 dalusung@pacific.net.ph 1

Presentation Outline Technology strategy Challenges of development Role of renewable energy Development thrusts Recent developments Needs addressed 2

Technology Strategy Use technology in the context of an enterprise project that is commercially viable and sustainable. 3

Challenges of Development Off-Grid Half of population remain without access to modern energy supply Slow pace of economic growth in “unserved areas”, limited capacity to pay On-Grid High cost of grid electricity Quality of service 4

Role of Renewable Energy A real option Competitive alternative to grid extension Emerging alternative for grid supply Catalyze economic development Improve capacity to pay Improve supply security Onsite generation is more secure Conjunctive use within electric grid 5

Increasing Capacity to Pay Link energy supply with provision of infrastructure and services Coastal area  ice supply Upland  water supply Introduce livelihood programs Structure payment schemes to be consistent with income patterns

Development Thrust Monitor commercialization of key locally applicable technologies Local market adaptation/full-scale demonstration New applications/implementation schemes for proven technologies Available as commercial equipment and with warranties and after-sales service 6

Nationwide Wind Atlas First to use NREL’s fully-computerized techniques Over 70,000 MW of utility-scale technical potential Over 170,000 MW including off-grid uses Full text of report available ArcInfo GIS file available 7

8

Cepalco PV + Mini-Hydro 1-MW solar PV / 7-MW mini-hydro Solar PV generation during the day can maximize mini-hydro generation during early evening peak Other benefits Huge replication potential Expected lowering of prices of solar PV panels in the local market 9

“Micro-turbines” Commercial availability (Capstone) Ability to use biogas Unit sizes from 28 kW (net, Capstone) to 75 kW (Allied Signal) “Refrigerator-size” Is this the Apple II of power sector? 10

Residential Scale Fuel Cells Plug Power (www.plugpower.com) is a company set up to develop viable commercial fuel cells. Off the shelf units are now available.

Small-Scale Geothermal Philippines is 2nd-largest producer of geothermal power in the world Commercial availability of: Binary-cycle power plants (Ormat) Very low pressure steam turbines (Fuji Electric) Recent advances in “slim-hole” drilling Need to address fiscal regime 11

Recent Developments Windpower Solar PV Microturbines Completion of nationwide wind atlas Solar PV Solar PV + mini-hydro conjunctive use Microturbines Biogas applications Small-scale geothermal Slim-hole wells, Very low pressure turbines 12

Needs addressed Industry-recognized resource data Baseload supply  Capacity credit Small-scale, compact units Distributed power generation Ability to develop the resource using standard, accessible equipment Maximize energy efficiency Technology should address market needs 13

Thank you! 14