Transcript STATUS OF WIND DEVELOPMENT in the PHILIPPINES

STATUS OF WIND DEVELOPMENT
in the PHILIPPINES
JOSE M. LAYUG, JR.
Undersecretary
2010 PRIMARY ENERGY MIX
Wind & Solar
0%
Biofuels
1%
CME & Ethanol
0%
Biomass
13%
Oil
36%
Geothermal
21%
Hydro
5%
Total Energy = 40.73 MTOE
Self-Sufficiency = 57.5%
Coal
17%
Natural Gas
7%
POWER SECTOR
2010 INSTALLED CAPACITY
Solar
Biomass 0.01%
0.24%
Hydro
20.78%
Wind
0.20%
Coal
29.75%
Geothermal
12.02%
Natural Gas
17.49%
Installed Capacity = 16,359 MW
RE = 33.25% (5,439 MW)
Oil Based
19.52%
POWER SECTOR
2010 GROSS POWER GENERATION
Solar
Biomass 0.002%
Wind
Hydro 0.04%
0.09%
11.52%
Coal
34.40%
Geothermal
14.66%
Oil Based
10.48%
Natural Gas
28.81%
Gross Generatiopn = 67,743 GWh
Self-sufficiency = 38,948 GWh (62.89 %)
RE = 26.31% (17,823 GWh)
Note: Generation data includes grid connected, embedded, and off-grid generators
Wind Energy Resources
Figure 10
1
Over 10,000 km² with 76,600 MW
of potential capacity
2
6 Identified Regions
3
1. Batanes and Babuyan Island
4
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)
5
6
Wind Energy Resources
•
Identified potential sites with power density of at least 500
W/m2 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
•
Visayas
: 305 sites; 2,168 MW
•
Mindanao
:
47 sites;
336 MW
OTHER RE RESOURCES
• Geothermal Resource – 1,200 MW
• Hydropower - 10,500 MW
• Solar Energy – Average potential 5kWh/m2/day
• Ocean energy - 170,000 MW
• Biomass (bagasse) total potential of 235.7 MW
WIND ENERGY ROADMAP
2011
2015
2020
M
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S
2025
T
O
N
E
2030
S
Mainstreaming of 1,540 MW (3.372 TWH) wind capacities (US$3.85 B)
Annual CO2 emission reduction - 2.529 Million Tons (US$12.7 M)
Generated jobs – 1,280
• RA 9513 is in full swing
• FIT for wind is viable (on-grid & off-grid)
• Transmission Development Plan
• Distribution Development Plan
• Wind power reached
Grid Parity
• Smart Grid Demo
2012
2015
2025
DEVELOP
WEP
IMPLEMENT & UPDATE WEP PLANS, PROJECTS & ACTIVITIES
M
A
J
O
R
S
T
R
A
T
E
G
Y
REGULATORY
FRAMEWORK
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 incentives
• Non-fiscal incentives
• Institutional support
FISCAL INCENTIVES
RE Developers (New & Existing)
7 year Income Tax Holiday (ITH)
RE Suppliers, Fabricators,
Manufacturers
7 year Income Tax Holiday (ITH)
10 year Duty-free Importation of RE Machinery, 10 year Tax and Duty-free Importation of
Equipment and Materials
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 Rate
Zero-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 Systems
Financial Assistance program
NON-FISCAL INCENTIVES
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;
Feed-In Tariff System
•
refers to price premium for the wind, solar, ocean, run-of-river
hydropower and biomass generated electricity;
NON-FISCAL INCENTIVES
• Green Energy Option
• to establish a program which provides the end-users the
option to choose RE resources as their sources of energy;
• Net 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;
INSTITUTIONAL SUPPORT
• National Renewable Energy Board
• Renewable Energy Management Bureau
• RE Trust Fund
• Financial Assistance Program
STATUS OF RA 9513
Awarded Projects
RESOURCE
Biomass
NO. OF
PROJECT
CAPACITY
ESTIMATED COST*
(MW)
(Million US$)
16
166
63.50
2,579
12,146.14
(26 Developers)
Geothermal
21
(11 Developers)
Solar
2
31
0.023
Hydro
126
937
434.01
11
8.39
921
10.25
4,645
12,662.313
(32 Developers)
Ocean
3
(2 Developers)
Wind
45
(9 Developers)
Total
213
* - Pre-development cost
Pending Applications
RESOURCE
Biomass
NO. OF
PROJECT
CAPACITY
19
203
(MW)
(15 Developers)
Geothermal
18
201
(7 Developers)
Solar
33
180
(6 Developers)
Hydro
32
1,854
(4 Developers)
Ocean
Wind
-
-
63
1,144
(21 Developers)
Total
139
3,582
PROPOSED NREB FIT RATES
US$/kWH
PhP/kWH
PRELIMINARY
INSTALLATION
TARGET (MW)
Solar PV
(ground
mounted)
0.42
17.95
100
Wind (on-shore)
0.24
10.37
220
Run-of-river
hydro
0.14
6.15
250
Ocean (OTEC)
0.41
17.65
10
Biomass
0.16
7.00
250
FIT RATES
RESOURCE
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