Transcript POLICIES AND PROGRAMS ON RENEWABLE ENERGY Prospects for Small Scale Clean Development Mechanism

Department of Energy
POLICIES AND PROGRAMS
ON RENEWABLE ENERGY
Prospects for Small Scale Clean
Development Mechanism
OUTLINE
1. RE Goals, Policies and Strategies
2. RE Situationer
3. Policies on Small RE Systems
4. RE Incentives
5. RE Potential Projects
Energy Sector Objectives
1. Ensure sufficient, stable, secure, accessible and
reasonably-priced energy supply
2. Pursue cleaner and efficient energy utilization and clean
technologies adoption
3. Cultivate strong partnership and collaboration with key
partners and stakeholders
4. Empower and protect welfare of various energy publics
Renewable Energy Goals
 Increase RE-based capacity by 100% within the
next 10 years (2003-2012)
 Increase non-power contribution of RE to the energy mix
by 10 MMBFOE in the next ten years
Be the number one geothermal energy producer in the world
Be the number one wind energy producer in Southeast Asia
Double hydro capacity by 2012
Expand contribution of biomass, solar and ocean energy
by 100 MW
TARGETS
RESOURCE
Geothermal
Hydro
Wind
Biomass, Solar
& others
Total
INSTALLED
TARGET
CAPACITY INSTALLED
AS OF 2002 CAPACITY
TOTAL INSTALLED
CAPACITY
1,931
2,518
0
0
1,200
2,723
255
101
3,131
5,241
255
101
4,449
4,279
8,728
ASSUMPTIONS
 Enhancement of existing policies and programs
 Realization of higher production targets
 Establishment of market-driven RE industry
 Availability of new international financing
schemes (e.g. Clean Development Mechanism
(CDM) and Prototype Carbon Fund)
RE Policies and Strategies
Diversify energy mix in favor of indigenous RE resources
Promote wide-scale use of RE as alternative fuels and technologies
Transform Negros Island as a model of RE development and utilization
Make the Philippines a manufacturing hub for PV cells to facilitate
development of local manufacturing industry for RE equipment and
components
Encourage greater private sector investments and participation in RE
development through market-based incentives
Establish responsive market mechanisms for RE-generated power
Formulate an effective management program for fuelwood utilization
with the view of reducing environmental impact
RE SITUATIONER
Primary Energy Consumption, 2002 vs. 2001 (in MMBFOE)
2002
2001
Percent
Change
RENEWABLE
Share Relative to Total Energy
2002
2001
108.8
107.4
1.3
43.4
43.2
Geothermal
17.7
18.0
-1.9
7.0
7.2
Hydro
12.1
12.2
-1.0
4.8
4.9
Biomass
78.8
77.0
2.4
31.4
31.0
Wood/Woodwaste
44.7
43.7
2.3
17.8
17.6
Bagasse
11.2
11.0
2.2
4.5
4.4
Charcoal
5.5
5.4
1.3
2.2
2.2
17.5
16.9
3.1
7.0
6.8
0.2
0.2
28.3
0.1
0.1
Agriwaste
Others
RE SITUATIONER
Renewable Energy Share in Total Primary Energy Consumption
100%
80%
60%
40%
20%
Conventional
Biomass, Solar, etc.
Geothermal
Hydro
20
01
19
99
19
97
19
95
19
93
19
91
19
89
19
87
19
85
19
83
19
81
19
79
19
77
19
75
19
73
0%
RE SITUATIONER
Primary Energy Mix of Selected Countries,
Share of Renewables vs. Conventional
100%
80%
60%
40%
20%
In
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Geothermal
Hydro
Biomass
Solar
Wind
Others
Conventional
Existing Policies on Small RE Systems
HYDRO
1. Small hydro - 10 MW and below
- Micro-hydro - 100 kW and below
- Mini-hydro - 101 kW to 10 MW
2. Large hydro - more than 10 MW
RE INCENTIVES
RA 7156 – Mini Hydro Law
 Special privilege tax rates – Tax payable by developers/grantees to develop
potential sites for hydroelectric power and to generate, transmit and sell
electric power shall be 2 percent of their gross receipts
 Income tax holiday for seven (7) years from start of commercial operations
 Tax and duty free importation of machinery, equipment and materialsExemption from payment of tariff duties and value-added tax (VAT) on
importation of machinery and equipment (within seven (7) years from date
of awarding of contract)
RE INCENTIVES
RA 7156 – Mini Hydro Law

Tax credit on domestic capital equipment - For developers who buy
machinery, equipment, materials and parts from a local manufacturers, tax
credit is given equivalent to 100 percent of value of VAT and custom duties
that would have been paid to import said machinery, equipment, etc.
 Special realty tax rates on equipment and machinery – Realty and other
taxes on civil works, equipment, machinery and other improvements of a
registered mini-hydroelectric power developer shall not exceed 2.5 percent
of their original cost
 VAT Exemption - Exemption from payment of 10 percent VAT on gross
receipts derived from sale of electric power whether wheeled via the NPC
grid or electric utility lines
RE INCENTIVES
EO 462 (1997) as amended by EO 232 (2000)- OSW
 The government shall waive the signature bonus on the first project to
reduce pre-operating cost burden on the OSW production-sharing
contractor.
 Payment of production bonus shall be applied only after the project has
fully recovered its pre-operating expenses.
 OSW developers shall be allowed to charge the cost of assessment, field
verification and feasibility studies of other sites to its current commercial
projects.
 The government shall facilitate developers in obtaining all applicable fiscal
and non-fiscal incentives, including registration as pioneer industry under
the Board of Investments (BOI) and securing of access to lands and offshore
areas where OSW resources shall be harnessed.
RE INCENTIVES
PD 1442 : An Act to Promote the Exploration & Development Of
Geothermal Resources
 Recovery of operating expenses not exceeding 90% of the gross value in any
year with carry-forward of unrecovered cost
 Service fee of up to 40% of the net proceeds
 Exemption from all taxes except income tax
 Exemption from payment of tariff duties and compensating tax on the
importation of machinery, equipment, spare parts and all materials for
geothermal operations
 Depreciation of capital equipment over a ten (10) year period
 Easy repatriation of capital investments and remittance of earnings
RE INCENTIVES
Proposed RE Bill
 Existing fiscal incentives strengthened/additional
incentives
 Non-fiscal incentives – priority dispatch,
ancillary services and interconnection &
wheeling charges
Incentives
List of Potential Hydropower Resources for Power Generation
NAME
RE
P
R
O
J
E
C
T
S
CLASSIFICATION
INSTALLED
CAPACITY (MW)
COMMISSIONING
YEAR
LOCATION
Luzon
San Roque HEP*
Kalayaan PS HEP*
Cantigas
Batang-Batang MHP
Kapipian MHP
Kanan HEP
Colasi MHP
Catuiran HEP
Dugui MHP
Langogan MHP
Addalam HEP
Aglubang HEP
Diduyun HEP
Agbulo HEP
Hitoma MHP
Abuan HEP
Cabinbin MHP
Large Hydro
Large Hydro
Mini-Hydro
Mini-Hydro
Mini-Hydro
Large Hydro
Mini-Hydro
Large Hydro
Mini-Hydro
Mini-Hydro
Large Hydro
Large Hydro
Large Hydro
Large Hydro
Mini-Hydro
Large Hydro
Mini-Hydro
1,791.0
419.4
400.0
0.9
3.5
3.0
113.0
1.0
24.0
4.0
6.8
46.0
13.6
332.0
360.0
3.0
60.0
0.8
2003
2004
2004
2005
2005
2007
2007
2007
2008
2008
2009
2009
2010
2011
2011
2012
2012
Pangasinan
Laguna
Romblon
Palawan
Catanduanes
Quezon
Camarines Norte
Mindoro Oriental
Catanduanes
Palawan
Quirino
Mindoro Oriental
Quirino
Apayao
Catanduanes
Isabela
Palawan
Visayas
Pacuan HEP
Amandaraga MHP
Timbaban HEP
Sicopong HEP
Bugtong MHP
Igbolo MHP
Siaton MHP
Villasiga HEP
Large Hydro
Mini-Hydro
Large Hydro
Large Hydro
Mini-Hydro
Mini-Hydro
Mini-Hydro
Large Hydro
126.2
33.0
4.0
29.0
17.8
1.0
4.0
5.4
32.0
2006
2006
2008
2008
2008
2009
2010
2013
Negros Oriental
Eastern Samar
Aklan
Negros Oriental
Samar
Iloilo City
Negros Oriental
Antique
Mindanao
Hinubasan
Lower Dapitan MHP
Liangan HEP
Taguibo MHP
Lake Mainit HEP
Middle Dapitan MHP
Tagoloan HEP
Libungan MHP
Agus III HEP
Upper Dapitan MHP
Bulanog-Batang HEP
Pulangi V HEP
Mini-Hydro
Mini-Hydro
Large Hydro
Mini-Hydro
Large Hydro
Mini-Hydro
Large Hydro
Mini-Hydro
Large Hydro
Mini-Hydro
Large Hydro
Large Hydro
806.1
0.4
3.8
11.9
7.0
22.0
4.4
68.0
10.0
225.0
3.6
150.0
300.0
TOTAL
2,723.3
2004
2005
2006
2006
2007
2007
2009
2009
2010
2010
2011
2012
Dinagat Island
Zamboanga del Norte
Lanao del Norte
Agusan del Norte
Agusan del Norte
Zamboanga del Norte
Bukidnon
North Cotabato
Lanao del Norte
Zamboanga del Norte
Bukidnon
North Cotabato
RE POTENTIAL PROJECTS
List of Identified Wind Resources for Power Generation
NAME
INSTALLED
CAPACITY (MW)
COMMISSIONING
YEAR
LOCATION
Luzon
Wind
Wind
Wind
Wind
Wind
Wind
Wind
Wind
Wind
Wind
Wind
225
25
40
2
3
35
80
12
3
15
5
4
2004
2005
2006
2006
2007
2007
2007
2007
2008
2008
2009
Ilocos Norte
Ilocos Norte
Romblon
Marinduque
Ilocos Norte
Ilocos Norte
Palawan
Catanduanes
Mindoro Oriental
Mindoro Occidental
Masbate
Visayas
Wind
30
30
2006
Negros Occidental
TOTAL
255
R E POTENTIAL PROJECTS
List of Potential Biomass, Solar and Ocean Resources for Power Generation
NAME
INSTALLED
CAPACITY (MW)
COMMISSIONING
YEAR
Luzon
Biomass (Rice Husk)
40
40
2010
Bulacan
Visayas
Biomass (Cogen)
50
50
2005
Negros Occidental
Mindanao
Centralized Solar PV
Ocean Thermal
11
1
10
2005
2007
Cagayan de Oro
South Cotabato
TOTAL
101
LOCATION
R E POTENTIAL PROJECTS
List of Potential Geothermal Resources for Power Generation
R E POTENTIAL PROJECTS
Geothermal for Non-Power Applications
 Enhancement of the self-reliant multi-crop dryer project in Manito, Albay
 Multi-crop dryer in geothermal sites in Leyte
 In close coordination with the Department of Tourism, promote hot spring
areas for possible spa resort development