1. STATUS OF WIND DEVELOPMENT in the PHILIPPINES JOSE M. LAYUG, JR. Undersecretary

2. 2010 PRIMARY ENERGY MIX Total Energy = 40.73 MTOE Self-Sufficiency = 57.5%

3. POWER SECTOR 2010 INSTALLED CAPACITY RE = 33.25% (5,439 MW)

4. Note: Generation data includes grid connected, embedded, and off-grid generators Self-sufficiency = 38,948 GWh (62.89 %) 2010 GROSS POWER GENERATION POWER SECTOR RE = 26.31% (17,823 GWh)

5. 1.Batanes and Babuyan Island 2.Northwest tip of Luzon (Ilocos Norte) 3.Higher interior terrain of Luzon, Mindoro, Samar, Leyte, Panay, Negros, Cebu, Palawan, Eastern Mindanao and adjacent islands 4.Well-exposed east-facing coastal locations from Northern Luzon southward to Samar 5.The wind corridors between Luzon and Mindoro (including Lubang Island) 6.Between Mindoro and Panay (including the Semirara & Cuyo Island) 6 Identified Regions Over 10,000 km² with 76,600 MW of potential capacity 1 2 4 3 5 6 Wind Energy Resources

6. Identified potential sites with power density of at least 500 W/m 2 and transmission line cost of not over 25% of levelized cost of combined generation and transmission costs. Identified potential sites with power density of at least 500 W/m 2 and transmission line cost of not over 25% of levelized cost of combined generation and transmission costs. – Philippine total potential is about 7,400 MW covering 1,038 wind sites: Luzon : 686 sites; 4,900 MW Luzon : 686 sites; 4,900 MW Visayas: 305 sites; 2,168 MW Visayas: 305 sites; 2,168 MW Mindanao: 47 sites; 336 MW Mindanao: 47 sites; 336 MW Wind Energy Resources

7. OTHER RE RESOURCES OTHER RE RESOURCES Geothermal Resource – 1,200 MWGeothermal Resource – 1,200 MW Hydropower - 10,500 MWHydropower - 10,500 MW Solar Energy – Average potential 5kWh/m 2 /daySolar Energy – Average potential 5kWh/m 2 /day Ocean energy - 170,000 MWOcean energy - 170,000 MW Biomass (bagasse) total potential of 235.7 MWBiomass (bagasse) total potential of 235.7 MW

8. IMPLEMENT & UPDATE WEP PLANS, PROJECTS & ACTIVITIES 2012 WIND ENERGY ROADMAP Smart Grid DemoSmart Grid Demo 2015 2025 Wind power reached Grid ParityWind power reached Grid Parity 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 1,540 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 DEVELOP WEP 20202015203020112025 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

9. REGULATORYFRAMEWORK

10. REPUBLIC ACT 9513 Renewable Energy Act of 2008 AN ACT PROMOTING THE DEVELOPMENT, UTILIZATION AND COMMERCIALIZATION OF RENEWABLE ENERGY RESOURCES AND FOR OTHER PURPOSES Provides the following: Fiscal incentivesFiscal incentives Non-fiscal incentivesNon-fiscal incentives Institutional supportInstitutional support

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

12. Renewable Portfolio Standard (RPS) 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; NON-FISCAL INCENTIVES Feed-In Tariff SystemFeed-In Tariff System refers to price premium for the wind, solar, ocean, run-of-river hydropower and biomass generated electricity;refers to price premium for the wind, solar, ocean, run-of-river hydropower and biomass generated electricity;

13. Green Energy Option Green Energy Option to establish a program which provides the end-users the option to choose RE resources as their sources of energy;to establish a program which provides the end-users the option to choose RE resources as their sources of energy; Net Metering for Renewable EnergyNet 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;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; NON-FISCAL INCENTIVES

14. National Renewable Energy BoardNational Renewable Energy Board Renewable Energy Management BureauRenewable Energy Management Bureau RE Trust FundRE Trust Fund Financial Assistance ProgramFinancial Assistance Program INSTITUTIONAL SUPPORT

15. STATUS OF RA 9513

16. Awarded Projects RESOURCE NO. OF PROJECT CAPACITY (MW) ESTIMATED COST* (Million US$) Biomass16 (26 Developers) 16663.50 Geothermal21 (11 Developers) 2,57912,146.14 Solar2310.023 Hydro126 (32 Developers) 937434.01 Ocean3 (2 Developers) 118.39 Wind45 (9 Developers) 92110.25 Total2134,64512,662.313 * - Pre-development cost

17. Pending Applications RESOURCE NO. OF PROJECT CAPACITY (MW) Biomass19 (15 Developers) 203 Geothermal18 (7 Developers ) 201 Solar33 (6 Developers) 180 Hydro32 (4 Developers) 1,854 Ocean-- Wind63 (21 Developers) 1,144 Total1393,582

18. PROPOSED NREB FIT RATES RESOURCE FIT RATES PRELIMINARY INSTALLATION TARGET (MW) US$/kWHPhP/kWH Solar PV (ground mounted) 0.4217.95100 Wind (on-shore)0.2410.37220 Run-of-river hydro 0.146.15250 Ocean (OTEC)0.4117.6510 Biomass0.167.00250

19. WAY FORWARD Development of guidelines for the following mechanisms: Renewable Portfolio Standard Net metering RE Trust Fund Feed-in Tariff Rates Green Energy Option RE Registrar/Market