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2. Renewable Energy Act of 2008  On-Grid Renewable Energy Development  Renewable Portfolio Standards  Feed-In Tariff System  Renewable Energy Market  Green Energy Option  Net-metering for Renewable Energy  Off-Grid Renewable Energy Development  Minimum RE generation capacities 2 R.A. 9513

3. Section 7 of the RE Law For emerging renewable energy resources to be used in compliance with the Renewable Portfolio Standard, to wit:  Wind  Solar  Ocean  Run-of-river Hydro  Biomass Feed-In Tariff System

4. Section 7 of the RE Law  Fixed tariff to be paid to electricity produced from these renewable energy resources.  Mandated number of years, not less than twelve (12).  ERC, in consultation with the NREB.  Priority connection to the grid.  Priority purchase and transmission of, and payment for, such electricity by the grid system operators. Feed-In Tariff System

5. FIT Rules 5 Feed-In Tariff Rules July 12, 2010-Approval of the FIT Rules July 28, 2010-Published in a Newspaper August 12, 2010-Effectivity of FIT Rules August 19, 2010-ERC issued a letter to NREB requesting it to submit its recommended FITs on or before 15 days from receipt May 16, 2011-NREB filed a Petition for the adoption of its proposed FIT Rates July 6, 2011-Received DOE’s Resolution Approving Final Installation Target.

6. FIT Rules 6 Schedule of Hearings: 1.August 3, 2011 – Expository, conditional 2.September 9. 2011 - Jurisdictional, Expository Presentation and Pre-Trial Conference 3.September 16, 2011 - Expository Presentation 4.September 27, 2011 - Expository Hearing 5.September 29, 2011 - Presentation of Evidence 6.September 30, 2011- Evidentiary Hearing, continuation

7. NGCP FIT-ALL FIT Framework

8. Based on cost of a representative project Linked to installation targets of DOE/ NREB (based on RPS) Technology-specific Peak or Off-peak for certain technologies 20 years duration Subject to degression and adjustments Subject to review The FIT and the FIT-All NREBERCFIT FIT Rules

9. Uniform /kwh charge Payable by all electricity users Periodically calculated and set Based on forecasted RE deliveries Proceeds go to a fund administered by NGCP from where the RE payments will be sourced The FIT and the FIT-All NGCP ERC FIT All FIT Rules

10. NREB’s Proposal Renewable Energy Resource Proposed FIT (Php/kWh) Installation Target (MW) Degression Rate Biomass7.002500.5% (after year 2) Ocean17.65100% Run-of-River Hydro 6.152500.5% (after year 2) Solar (ground- mounted) 17.95506% (after year 1) Wind10.371000.5% (after year 2) 10

11. Title of Presentation 11 THANK YOU! www.erc.gov.ph