Transcript Project Overview

Promotion of Demand-Side Management
and Renewable Energy under a
Competitive Electricity Market:
The Philippines Case
Ms. Irma C. Exconde
Presented to the
6th Asian Development Research Forum General Meeting
June 7- 8, 2004, Siam City Hotel
Bangkok, Thailand
Philippines
1
Outline of Presentation
Overview of Energy Supply and Demand
and National Energy Policies
Energy Conservation Policies
Renewable Energy Promotion Policies
Philippines
2
ENERGY SUPPLY AND DEMAND
and
NATIONAL ENERGY POLICIES
Philippines
3
Energy Supply and Demand
Primary Energy, 2002 vs 2001
Energy Source
Indigenous Energy
Oil
Condensate
Gas
Coal
Renewable Energy
Hydropower
Geothermal
Others
Imported Energy
Oil
Coal
Total
Oil
Non-Oil
Self Sufficiency %
2001
113.05
0.47
0.3
0.89
4.08
107.31
12.25
18
77.06
136.69
111.45
25.24
249.74
112.22
137.52
45
Volume (in MMBFOE)
% share
2002
45
0
0
0
2
43
5
7
31
55
45
10
100
45
55
1/ MMBFOE - Million Barrels of Fuel Oil Equivalent
Philippines
129.5
1.27
2.67
11.2
5.53
108.83
12.13
17.66
79.04
124.93
103.62
21.31
254.43
107.56
146.87
51
%
% share Change
52
1
1
4
2
44
5
7
32
50
41
9
102
43
59
14.6
170.2
790.0
1158.4
35.5
1.4
-1.0
-1.9
2.6
-8.6
-7.0
-15.6
1.9
-4.2
6.8
4
Energy Supply and Demand Situationer
Energy Consumption by Sector, 2002 vs 2001
Sector
2001
Volume
(MMBFOE)
2002
% Share
Volume
(MMBFOE)
% Share
% Change
Residential
Transport
70.91
56.19
39.45
31.26
73.37
57.57
40.08
31.45
3.48
2.45
Industry
Commercial
30.82
14.7
17.14
8.18
27.28
15.5
14.9
8.47
-11.47
5.39
Agriculture
7.14
3.97
9.35
5.11
30.9
179.75
100
183.06
100
1.84
Total
Source: Department of Energy-PEP 2004-2013
1/ MMBFOE - Million Barrels of Fuel Oil Equivalent
Philippines
5
POWER SECTOR SITUATIONER
Generation / Transmission / Distribution, 2003
GRID
Luzon
Visayas
Mindanao
Total
Installed
Capacity
(MW)
11,810
1,647
1,675
15,132
Dependable
Capacity
(MW)
Peak
Demand
(MW)
10,519
1,423
1,320
13,262
PLANT TYPE
Luzon
Oil-based
Hydro
Geothermal
Coal
Natural Gas
Total
6,454
1,006
1,049
8,509
Installed
%share
(MW)
3,615
24
2,865
19
1,932
13
3,958
26
2,763
18
15,132
100
Visayas
Distribution Utilities
Electric Cooperatives
119
Private Dist. Utilities
18
LGUs
2
Barangay Electrification, as of 6/03
No. of Brgys. Energized
37,246
No. of Remaining Brgys.
4,753
Interconnection
Mindanao
Philippines
•
•
•
•
•
Leyte-Luzon (440 MW)
Leyte-Cebu (200 MW)
Cebu-Negros (100 MW)
Negros – Panay (100 MW)
Leyte-Bohol (35 MW)
6
Energy Supply and Demand Outlook
Energy Demand by Sector, 2004-2013
100.00
90.00
80.00
70.00
60.00
50.00
40.00
30.00
20.00
10.00
0.00
2004
2005
2006
Residential
2007
2008
Transport
2009
2010
Industrial
MMBFOE - Million Barrels of Fuel Oil Equivalent
Philippines
2011
2012
2013
Commercial
Agriculture
7
SUPPLY DEMAND PROFILE
Luzon, 2004 – 2013
16100
Hydro - 350 MW
MW
Wind Power –
65 MW
Additional
Capacity
Needed
12100
8100
Plant Retirements:
4100
100
Oil-based –
210 MW (2009)
Oil-based –
650 MW (2010)
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
0
0
0
0
0
0
150
600
1350
900
750
1050
0
0
350
0
65
0
0
0
0
0
Existing
10435
10520
10520
10520
10520
10520
10520
10310
9660
9660
Peak
6,039
6,454
6,937
7,473
8,076
8,662
9,323
10,036 10,786 11,575 12,406 13,280
Indicative
.Capacity
Committed
Philippines
0
9660
0
9660
8
SUPPLY DEMAND PROFILE
Cebu, 2004 – 2013
MW
1000
Inteconnection Uprating
800
Additional
Capacity
Needed
600
400
200
Plant Retirements:
Oil-Based Plant – 98.8 MW (2011)
0
2002 2003 2004 2005 2006 2007 2008 2009 2010
2011 2012 2013
Indicative Capacity 0
180
Leyte-Cebu Int.
361
Existing
0
180
361
0
180
361
0
360
361
0
348
361
0
325
361
100
299
361
100
271
361
50
241
361
150
209
281
50
175
281
50
139
281
407
435
467
502
541
579
621
666
713
762
813
866
Peak
Philippines
9
SUPPLY DEMAND PROFILE
Negros, 2004 – 2013
Interconnection Uprating
500
MW
Geothermal
400
60MW
Additional
Capacity
Needed
Biomass Cogen 80 MW
300
200
100
0
2002 2003 2004 2005 2006 2007 2008 2009
2010 2011 2012 2013
0
0
0
0
0
0
0
140
0
0
0
0
0
0
0
0
0
0
0
0
50
0
50
0
Cebu-Negros Int.
Existing
90
180
90
180
74
180
90
180
168
180
107
180
139
180
166
180
139
180
128
180
93
180
53
180
Peak
197
207
219
232
246
259
273
287
302
317
332
347
Indicative Capacity
Committed
Philippines
10
SUPPLY DEMAND PROFILE
Panay, 2004 – 2013
600
Interconnection Uprating
MW
500
Oil-based - 150 MW
Additional
Capacity
Needed
400
300
200
Plant Retirements:
100
Oil-based
– 75 MW (2007, 2009)
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
0
0
0
0
0
150
0
150
0
150
0
150
0
150
50
150
100
150
150
150
200
150
250
150
Negros-Panay Int.
Existing
73
141
62
141
34
141
90
141
180
141
138
116
156
116
169
66
127
66
101
66
101
66
96
66
Peak
183
195
210
225
243
260
279
299
320
342
365
389
Req'd. Cap. Add.
Committed
Philippines
11
SUPPLY DEMAND PROFILE
Mindanao, 2004 – 2013
2500
MW
Coal - 200 MW
2000
Additional Capacity Needed
1500
1000
500
0
2002
2003
2004
2005
2006
0
0
100
0
0
1422
0
0
200
Existing
0
1422
1422
1422
Peak
995
1,04 9
1,112
Indicative Capacity
Committed
2007
0
2008
2009
2010
2011
2012
2013
0
200
0
150
0
100
0
0
0
0
0
0
0
1422
1422
1422
1422
1422
1422
1422
1422
1,181 1,259
1,331
1,412 1,498
1,586
1,676
1,769
1,864
Philippines
12
Energy Supply and Demand Outlook
Projected Energy Supply, 2004-2013
Year
Coal
Oil and Oil
Products
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
28.8
34.7
41.4
43.9
45.6
47.9
46.2
50.0
53.8
56.9
105.9
109.5
112.7
110.8
115.7
119.0
119.6
122.9
128.0
132.4
Natural
Gas
Hydro
power
Geo
thermal
18.3
18.9
20.3
31.6
35.1
40.6
50.0
52.6
55.5
60.5
14.5
15.3
16.4
16.2
15.7
16.2
17.7
18.0
20.6
20.7
21.7
24.6
24.6
24.6
24.6
25.3
27.1
30.3
30.3
30.3
Biomass,
Solar and
Wind
84.7
85.7
86.9
88.8
91.7
94.2
98.2
101.5
97.7
100.0
Total
274.0
288.7
302.3
315.9
328.4
343.1
358.8
375.4
385.9
400.9
MMBFOE - Million Barrels of Fuel Oil Equivalent
Philippines
13
National Energy Policy Framework
Promote economic growth, alleviate poverty and foster
market-based industry through the following
objectives:
Ensure sufficient, stable, secure, accessible and
reasonable prices energy supply
Pursue cleaner and efficient energy utilization and clean
energy technology applications
Cultivate strong partnerships and collaboration with key
partners and stakeholders through establishments of
arrangements to enhance sustain private sector support,
participation and cooperation in energy projects
Philippines
14
National Energy Policy Framework
Promote economic growth, alleviate poverty and foster
market-based industry through the following
objectives:
•
Empower and balance the various interests of the
energy public by conducting consumer welfare and
protection awareness and advocacy programs and
establishment and operationalization of appropriate
consumer feedback and monitoring mechanisms
Philippines
15
Electric Power Industry Reform
What has been Done
•
Unbundled the generation, transmission, distribution and
supply functions to achieve a transparent and reasonable
price of electricity
•
Adopted the Long-Run Avoidable Cost Pricing
Methodology to standardize the generation charges in
Luzon, Visayas and Panay/Bohol
•
Established a prototype Wholesale Electricity Spot Market
•
Created the Philippine Electricity Market Corporation
Philippines
16
WAY FORWARD
 Power Development Planning is expected to evolve as we move
forward in restructuring the power sector
 Need for viable & sustainable power rates to encourage new
investments in power generation
 Power reform is geared towards promoting competitive pricing
to attain the true cost of energy
 WESM implementation will encourage competitive new entrants
 Distribution utilities are responsible to sign up new power
supply agreements directly with IPPs
 The success of the electricity reform program is a concerted
effort of the public and private sectors
Philippines
17
ENERGY CONSERVATION
POLICIES
Philippines
18
Demand Side Management (DSM)
DSM Framework became effective December 29, 1996 with the
following goals:
To increase efficiency in generation, transmission and
distribution of electricity and defer construction of
power generating plants
To offer alternatives to utilities to optimize resources
and provide flexible options to reduce operating costs
and increase cost-competitiveness
To induce customers/consumers of electricity to adopt
measures to effect changes in energy consumption and
utility load shape
DSM Framework delineated the roles of DOE, Electric Utilities
and Electric Consumers to attain the above goals
Philippines
19
Energy Efficiency and DSM Programs
and Projects
Information and Educational Campaign
Conducted workshops and seminars on efficient utilization
of electricity in the household, academe, commercial,
industrial and manufacturing establishments
Power Patrol Program (Power Conservation and
Demand Management
2.73 MMBFOE savings
Road Patrol Program
1.64 MMBFOE savings
Government Energy Management Program (GEMP)
3.17 MMBFOE savings
Philippines
20
Energy Efficiency and DSM Programs
and Projects
Technical Assistance
Programs include on-site surveys, energy audit,
improvement of plant operational efficiency, mandatory
reduction of systems losses, implementation of DSM
48.76 MMBFOE savings
Heat Rate Improvement Program
2.09 MMBFOE savings
Enactment of Anti-Pilferage of Electricity and Theft of
Electric Transmission Lines/Materials Act of 1994
3.39 MMBFOE savings
Other DSM Programs: High Efficiency Lighting, Motor
Efficiency, Consumer Efficiency Awareness, Power Factor
Correction
0.95 MMBFOE savings
Philippines
21
Energy Efficiency and DSM Programs
and Projects
Consumer Protection
Ensure consumers are protected from unscrupulous trading
and market practices and sub-standard energy efficient
products and services
26.26 MMBFOE savings
Program Components
1)
2)
3)
4)
5)
6)
7)
8)
Efficiency Standards and Labeling for Room Airconditioners
Energy Labeling of Refrigerators
Labeling for Compact Fluorescent Lamps
Labeling for Fluorescent Lamp Ballasts
Performance Certification of Fans and Blowers
Efficiency Standards and Labeling of for Electric Fans
Labeling for Linear Fluorescent Lamps
Labeling for Electric Motors
Philippines
22
Issues in DSM Implementation
Lack of clear-cut and more responsive regulatory policy to
incentivize the promotion of DSM programs
Recovery of lost revenues
Financing for DSM projects
Standard Retail Tariff
Inclusion of costs in the consumers’ electric bill
Pilot Project Syndrome
Excess Capacity
Subsidy
DSM Promotion
Philippines
23
Way Forward
To promote universal use of energy efficient electric
products, service and technologies
To set minimum DSM goals for large utilities and simple
DSM plan for small utilities and cost recovery
plans for utilities who opted not to submit a DSM plan
To create of a System Benefits Charge
Philippines
24
RENEWABLE ENERGY
PROMOTION POLICIES
Philippines
25
Renewable Energy (RE)
RE Framework aims to facilitate the energy sector’s transition to a
sustainable system with RE as an increasingly prominent, viable
and competitive fuel option.
Objective:
To be the world’s geothermal energy producer
To be the leader in wind energy production in Southeast
Asia
To double hydropower installed capacity in 2012
To expand contribution of biomass, solar and ocean
to the energy mix
Philippines
26
Renewable Energy (RE)
Institutional Arrangements
Agencies Involved: Department of Energy, National Electrification
Administration, National Power Corp., Philippine National Oil Co., Energy
Regulatory Commission, National Economic and Development Authority,
Board of Investments, Department of Environment and Natural
Resources
Programs and Projects
Rural Electrification of Unviable Areas
Philippines
27
Barriers to Promotion of RE Under a
Competitive Electricity Market
Non-comprehensive development plan on NRE
RE projects not directed towards sustainability and real
market approach
Lack of clear policies and appropriate legislation on RE
applications
Lack of appropriate incentives for RE
Uneven playing field in the area of RE
Unfavorable utility regulations
Difficulty in establishing power contract
Difficulty in accessing traditional financing windows
Lack of capacity in project packaging and presentation
Lack of private sector involvement in small to medium scale
RE projects
Philippines
28
Barriers to Promotion of RE Under a
Competitive Electricity Market
Lack of success stories on sustainable RE applications in the
country
Lack of technology extension to users and suppliers of RE
technologies
Ineffective RE promotion and advocacy programs
Philippines
29
Way Forward
Facilitate transformation of RE as an economically
viable industry
• Enactment of the Proposed Renewable Energy Bill
Salient Features:
> On-grid Renewable Energy Development
> Off-Grid Renewable Energy Market
> Fiscal and Non-Monetary Incentives and Privileges
Maximize the role of the private sector in off-grid rural
electrification
Establish national standards for renewable equipment
Philippines
30
THANK YOU
Philippines
31