03. Philippines - APCTT

Affordable Sustainable Energy
for Off-Grid Use in the
Philippines

Emelita A.S. Dimapilis
Department of Science and Technology
Strengthening South-South Cooperation to Increase the Affordability
of Sustainable Energy Options in Asia and Pacific
Indonesia, 12-13 May 2014

Presentation Outline
Energy Situationer
Strategies
Policy mechanisms
S&T Interventions
Conclusions

Philippines
Population: 105 M
Area: 300,000 sq km
7,107 islands

Ave. T = 27 C

2012 Power Mix

Energy Self-Sufficiency = 58.78 %
Renewable Energy = 28.47%

RE-Based Capacity Targets

 Installed capacity

 World’s 2nd largest
1,966 MW

producer of
geothermal

 7 geothermal fields

Geothermal

Hydropower
Current installed capacity
3400 MW
Hydro Potential = 10,500 MW
85% - large& small hydro
14% - mini-hydro
1% - micro-hydro

Solar
Solar Energy Potential

 Potential generation of
4 to 6 kWh per sq. m.
per day

 Average sunshine

duration -1825 hours

 1 MW on-grid

Wind

 33 MW wind farm
 1st windfarm in SEA
 70,000 MW potential

Biomass
Direct
Combustion
Steam

Biomass

Gasification

Heating

SynGas

Power
Methane

Biological/
Chemical
Conversion
Biofuels

Transport

Ocean

• Pre-Development Stage
• Potential -170,000 MW

Strategies for Sustainable Energy

Conducive policy
environment
S&T Interventions

Renewable Energy Law
Accelerate the exploration and development
of renewable energy resources:
achieve energy self-reliance
adoption of clean energy to mitigate
climate change
Socio-economic development in rural
areas
Provides fiscal and non fiscal incentives

RE Law: Fiscal Incentives
RE DEVELOPERS (NEW & EXISTING)

RE SUPPLIERS, FABRICATORS,
MANUFACTURERS

7 year Income Tax Holiday

7 year Income Tax Holiday (ITH)

10 year Duty-free Importation of RE Machinery,
Equipment and Materials

Tax and Duty-free Importation of Components,
Parts and Materials

1.5% Special Realty Tax Rates on Equipment and
Machineries
7 year Net Operating Loss Carry Over
10 % Corporate Tax Rate after ITH
Accelerated Depreciation
Zero Percent Value-Added Tax Rate

Zero-rated value added tax transactions

Cash Incentives 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 Systems

Financial Assistance program

RE Law: Market Stimulus
Renewable Portfolio Standard
Minimum % of generation to be sourced from
eligible RE
Feed-In Tariff
Guaranteed fixed price for 12 years for
electricity produced from wind, solar,
microhydro, and biomass

Feed-In Tariff






Solar = P9.68 (US$ 0.22)
Wind = P8.53 (US$ 0.19)
Run-of-river hydro = P5.90 (US$ 0.13)
Biomass = P6.63 (US$ 0.15)

RE Law: Consumer Empowerment
Green Energy Option - allows end-users
the option to use RE as energy source
Net metering - allows end-users
generating own power to sell to the grid

Strategies for Sustainable Energy

Conducive policy
environment
S&T Interventions

Sustainable Energy S&T Goals

 Enhance energy self-sufficiency

- Development of alternative energy to increase its
share in energy mix

 Environmental sustainability
- Promotion of clean and green energy
 Countryside development
- Utilization of indigenous resources

Wind
10 kW demo
Wind mapping

Philippine
wind atlas
33 MW Wind farm

Micro-Hydro








Demonstration of CommunityBased MHP Generation
Demonstration of ElectroMechanical Governor Controlled
MHP
Localization of high-efficiency
turbines

Rural Electrification

Localization of MHP
components



GIS-MHP Map



Capacity Building

Biomass





Demonstration
projects

Promotion of wasteto energy
technologies
Capacity Building

Biogas




Increased acceptance of
biogas technology
Development of local
expertise
Technology Development
*
*

• GIS-based landfill inventory
• Biogas database/ website
• Development of local expertise

Reduction of cost
Standards
development

Biofuels

*

*

• Alternative feedstocks
(sweet sorghum, jatropha,
microalgae, lignocellulosic)
• Performance Testing
• Establishment of testing
labs

*

Development of
alternative
biofuel
feedstock
Improved confidence
in biofuel
Biofuel Standards
Development

Solar

Multi-commodity solar dryers

Technology to
increase farmer
productivity
Development of
local expertise

Localization of solar thermal systems
(desalination, collectors) for potable
water and drying

Ocean

Identification of
potential sites

• Tidal and marine current
resource assessment
• Resource maps for ocean
energy systems

Energy Efficiency

 Regional capability
building on EE
 Energy audit in the
food, iron & steel,
cement, metal casting
industries, and
commercial building
sectors



Creation of Experts
Pool at the Regional
Level


Increased SMEs
awareness

Conclusions
Preference for renewable energy to
provide sustainable energy
Conducive environment to attract private
sector participation
S&T acts as catalyst

Thank you