1. Renewable Energy Development and Related Promotion and Pricing Mechanism in the Philippines APEC WORKSHOP Chinese Taipei, 26-27 September 2013 ELVIRA TORRES-GELINDON Senior Researcher, APERC

2. OUTLINE OF PRESENTATION Background/Country Profile Current Energy Situation National Renewable Energy Program (NREP) Sub-Sectoral Programs and Targets RENEWABLE ENERGY DEVELOPMENT Renewable Energy Portfolio Standards (RPS) Feed-in-Tariff (FIT) Feed-in-Tariff Allowance (FiT All) Net Metering System RE POLICY (PRICING) MECHANISM

3. BACKGROUND/COUNTRY PROFILE

4. CURRENT ENERGY SITUATION Primary Energy Mix Fuel Input Mix for Power Generation

5. RENEWABLE ENERGY DEVELOPMENT Renewable Energy Management Bureau (REMB) Renewable Energy Management Bureau (REMB) National Renewable Energy Board (NREB) National Renewable Energy Board (NREB) National Renewable Energy Program (NREP) National Renewable Energy Program (NREP) -Accelerates the economy’s RE development

6. NATIONAL RENEWABLE ENERGY PROGRAM (NREP) Development Framework Sectoral Sub- Programs Policy and Program Support Institutionalize a comprehensive approach to accelerate the applications of renewable energy technologies in a sustainable manner Setoral Targets 1. Increase geothermal capacity by 75.0 percent; 2. Increase hydropower capacity by 160 percent; 3. Deliver additional 277MW biomass power capacities; 4. Attain wind power grid parity with the commissioning of 2,345 MW additional capacities; 5. Mainstream an additional 284 MW solar power capacities and pursue the achievement of the 1,528 MW aspirational target; 6. Develop the first ocean energy facility for the country. The 2010 RE Capacity level tripled by 2030

7. SUB-SECTORAL PROGRAMS

8. DEVELOP BEP B2B2 E5E5 IMPLEMENT & UPDATE BEP PLANS, PROJECTS & ACTIVITIES 2012 B5B5 2015 M I L E S T O N E S M A J O R S T R A T E G Y Mainstreaming of 913 MW (6.398 GWH) biomass capacities (US$2.3 B) Displaced 2,600 Million Liters of Fossil Fuel (US$1.37 Billion) Generated jobs – 730 direct jobs Mainstreaming of 913 MW (6.398 GWH) biomass capacities (US$2.3 B) Displaced 2,600 Million Liters of Fossil Fuel (US$1.37 Billion) Generated jobs – 730 direct jobs20202015203020112025 E10E10 B10 & E20B10 & E20 2017 B20 & E85B20 & E85 2021 RA 9513 is in full swingRA 9513 is in full swing FIT for biomass is viableFIT for biomass is viable Infrastructure support for blends increase BIOMASS ENERGY ROADMAP

9. DEVELOP GEP IMPLEMENT & UPDATE GEP PLANS, PROJECTS & ACTIVITIES 2012 Geothermal Training CenterGeothermal Training Center 220 MW additional installed capacity220 MW additional installed capacity 20152020 1,100 MW additional installed capacity1,100 MW additional installed capacity M I L E S T O N E S M A J O R S T R A T E G Y Mainstreaming of 1,495 MW (81.06 TWH) capacities (US$3.153 B) Annual CO 2 emission reduction - 60.795 Million Tons (US$303.975 M) Generated jobs – 2,541 direct jobs 20202015203020112025 RA 9513 is in full swingRA 9513 is in full swing GEP is in placeGEP is in place 2025 95 MW additional installed capacity95 MW additional installed capacity 80 MW additional installed capacity80 MW additional installed capacity GEOTHERMAL ENERGY ROADMAP

10. M I L E S T O N E S DEVELOP SEP IMPLEMENT & UPDATE SEP PLANS, PROJECTS & ACTIVITIES 20122015 Additional 269 MW capacityAdditional 269 MW capacity CSP Demo Power FacilityCSP Demo Power Facility PV InstitutePV Institute Smart Grid DemoSmart Grid Demo Established Solar LaboratoryEstablished Solar Laboratory 20172020 PV reached Grid ParityPV reached Grid Parity Integration of CSPIntegration of CSP M A J O R S T R A T E G Y Mainstreaming of 1,528 MW (475 GWH) solar capacities (US$4.6 B) Annual CO 2 Emission Reduction - 1.81 Million Tons (US$9.0 M) Generated jobs – 1,200 direct jobs Mainstreaming of 1,528 MW (475 GWH) solar capacities (US$4.6 B) Annual CO 2 Emission Reduction - 1.81 Million Tons (US$9.0 M) Generated jobs – 1,200 direct jobs20202015203020112025 RA 9513 in full swingRA 9513 in full swing FIT for solar is viableFIT for solar is viable SEP in placeSEP in place PV Net Metering DemoPV Net Metering Demo SOLAR ENERGY ROADMAP M I L E S T O N E S

11. DEVELOP HOEP IMPLEMENT & UPDATE HOEP PLANS, PROJECTS & ACTIVITIES 20122015 98 MW additional installed capacity (2.15% of the small- hydro target capacity)98 MW additional installed capacity (2.15% of the small- hydro target capacity) 1,575 MW additional installed capacity (35.4% of the hydro target capacity)1,575 MW additional installed capacity (35.4% of the hydro target capacity) At least two new OTEC facility is added to the gridAt least two new OTEC facility is added to the grid 2025 M A J O R S T R A T E G Y Mainstreaming of 4,580 MW ( 24.072 TWH) hydro capacities (US$11.449 B) Annual CO 2 Emission Reduction - 18.054 Million Tons (US$90.272 M) Generated jobs – 3,664 direct jobs Mainstreaming of 4,580 MW ( 24.072 TWH) hydro capacities (US$11.449 B) Annual CO 2 Emission Reduction - 18.054 Million Tons (US$90.272 M) Generated jobs – 3,664 direct jobs20202015203020112025 RA 9513 in full swingRA 9513 in full swing FIT for hydro is viableFIT for hydro is viable HOEP in placeHOEP in place 2020 2,958 MW additional capacity (62.5% of the hydro target hydro capacity)2,958 MW additional capacity (62.5% of the hydro target hydro capacity) First OTEC facility is added to the gridFirst OTEC facility is added to the grid HYDRO AND OCEAN ENERGY ROADMAP

12. M I L E S T O N E S DEVELOP WEP IMPLEMENT & UPDATE WEP PLANS, PROJECTS & ACTIVITIES 20122025 Wind power reached Grid ParityWind power reached Grid Parity M A J O R S T R A T E G Y Mainstreaming of 1,540 MW (3.372 TWH) wind capacities (US$3.85 B) Annual CO 2 emission reduction - 2.529 Million Tons (US$12.7 M) Generated jobs – 1,280 direct jobs 20202015203020112025 1,172 MW additional capacity1,172 MW additional capacity Smart Grid DemoSmart Grid Demo 2015 RA 9513 is in full swingRA 9513 is in full swing FIT for wind is viable (on-grid & off-grid)FIT for wind is viable (on-grid & off-grid) Transmission Development PlanTransmission Development Plan Distribution Development PlanDistribution Development Plan 2022 Additional 442 MW capacityAdditional 442 MW capacity 2020 Additional 855 MW capacityAdditional 855 MW capacity WIND ENERGY ROADMAP

13. RE POLICY MECHANISM the minimum percentage of generation from eligible RE resources provided by the generators, distribution utilities and electric suppliers necessary in the application of FiT on a per technology basis; Renewable Portfolio Standards (RPS) guaranteed payment in Philippine Peso per kilowatt-hour (“Php/kWh”) for electricity generated from emerging renewable energy technologies and actually delivered to the distribution and transmission network; Feed-in-Tariff (FIT) a uniform charge determined and collected by FIT All Fund Administrator which would cover the differential above the prevailing cost recovery rate for eligible RE generation actually delivered; Feed-in-Tariff Allowance (FIT All) a consumer-based renewable energy incentive scheme wherein electric power generated by an end-user from an eligible on-site RE generating facility and delivered to the local distribution utility (DU) may be used to offset electric energy provided by the DU to the end-user during the applicable period. Net Metering System

14. RENEWABLE ENERGY PORTFOLIO STANDARDS  Initial installation targets for RPS until 2015

15. FEED-IN-TARIFF (FIT)

16. FEED-IN-TARIFF ALLOWANCE (FIT All) Source : Energy Regulatory Commission (ERC) FD- Total FIT Differential ; CRR – Cost Recovery Revenue; WCA – Working Capital Allowance; AA- Administration Allowance; DA – Disbursement Allowance

17. NET METERING SYSTEM Proposed by the National Renewable Energy Board (NREB) to ERC a consumer-based renewable energy incentive scheme wherein electric power generated by an end-user from an eligible on- site RE generating facility and delivered to the local distribution utility (DU) may be used to offset electric energy provided by the DU to the end-user during the applicable period.

18. CURRENT STATUS  Further guidelines on the payment and collection of FIT Allowance has been submitted by DOE to ERC for review and approval;  The ERC posted invitation to stakeholders for comments on the FIT All guidelines;  FIT and FIT All System implementation pending resolution of some administrative issues

19. Thank You for your attention!