Opportunities of Scaling-up

Scaling Wind
Power in the Philippines

Fortunato S. Sibayan
Officer-in
in-Charge
Solar & Wind Energy Management Division

Quantum Leap in Wind Power in Asia – Structured Consultation

21 June 2010

The views expressed in this presentation are those of the presenter and do not necessarily represent those of the Asian Development
Devel Bank.

DEPARTMENT OF ENERGY 1
 Power Sector Overview

• Population 83 million; 82% connected to the grid

• Energy Mix – at 57% fossil fuel-based
based (33% imported fuel – coal and
oil), 43% Renewable Energy
• Power Generation: RE Accounts 35% of the generation mix (Hydro –
3,478 MW, Geothermal –1,972
1,972 MW, Biomass – 75.5 MW, Wind –33 MW,
Solar – 6.7 MW)
• Electricity Tariff – US cents 20/kWh – among world’s highest
• Generation rate – US cents 0.06 to 0.10/kWh (PhP 2.96 to 4.39/kWh)
• Required new capacity (2009-2030)
2030) is 16,550 MW (Luzon -11,900 MW,
Visayas – 2,150 MW & Mindanao – 2,500 MW)

Committed capacity – 1,354 MW while indicative capacity – 4,211 MW

Grid interconnection – Luzon & Visayas grids are interconnected

DEPARTMENT OF ENERGY
 RE PLAN (2008 – 2030)
• Energy security and energy independence targets: 60% energy self
sufficiency by 2010 and 90% household level electrification rate by 2017

ENSURING STABLE AND QUALITY SUPPLY OF ENERGY

Intensify RE Development and Utilization

2008 2010 2015Emergence of 2020 2030

RE Law, Small capacity RE Commerciali-
Commerciali-
ocean energy
RE Subsidiary, projects are projects, e.g. zation of ocean
Technology added to the grid; OTEC, wave, energy
Roadmap & big RE projects marine current technologies
One--stop shop
One are in the pipeline and tidal
1 2 3 4 5
OPTIMIZATION
IMPROVE RE POLICIES DOUBLE RE CAPACITY OF RE
AND PROGRAMS RESOURCES
(5,300 MW)

STRATEGIES
 Wind Resources
• Limited indigenous fossil fuel resources but significant solar, geothermal, hydro and wind
resources

WIND ATLAS
Identified potential sites with
power density of at least 500
W/m2 and transmission line 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

DEPARTMENT OF ENERGY
 Wind Power Projects
Northwind Wind Power Project
Bangui Bay, Ilocos Norte
•Capacity: 33 MW (20
WTG @ 1.65 MW)
•Height of hub : 70 m
•Cost = US$ 47.6 M

DEPARTMENT OF ENERGY
 RE Development Challenges
TECHNICAL ASPECT
• Long gestation period - limited primary data on resource;
• Infrastructure support – distance from transmission/distribution
lines, ports and road networks; and
• Availability – low capacity factor due to intermittency/seasonality of
resource and still emerging technology status.

NON-TECHNICAL ASPECT
• Market - high initial investment costs due to lack or limited local
manufacturers/fabricators/suppliers;
• Institutional/Organizational – limited local manpower and information
specifically on the benefits of RE;
• Political – limited RE champions and tendency of concerned
stakeholders to commit RE projects to favored RE developers.

DEPARTMENT OF ENERGY
 Institutional 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

NON-FISCAL INCENTIVES

1. Renewable Portfolio Standard (RPS)

2. Feed-In Tariff System
3. Green Energy Option
4. Net Metering

Other Features

1. National Renewable Energy Board

2. Renewable Energy Management
Bureau
3. RE Trust Fund
4. Financial Assistance Program

DEPARTMENT OF ENERGY
 STATUS of R.A. 9513
• June 12, 2009 – Effectivity of the IRR;
• August 10, 2009 – Effectivity of Guidelines
• Awarded 44 Wind Energy Service Contracts (920
MW)
• On process – 40 applications (500 MW)

DEPARTMENT OF ENERGY
 WAY FORWARD
Development of guidelines for the following mechanisms:

• RPS
• Net metering
• Feed-in Tariff
• REM/RER
• Green Energy Option
• RE Trust Funds
• RE Financial Program

DEPARTMENT OF ENERGY
 www.doe.gov.ph
fort_sibayan@yahoo.com
fsibayan@doe.gov.ph

FORTUNATO S. SIBAYAN
Solar & Wind Energy Management Division
Department of Energy
Energy Center, Merritt Road, Fort Bonifacio
Taguig City, Metro Manila
Trunkline: (+632) 479-2900
479 local 310
Telefax : (+632) 840-1817
840

DEPARTMENT OF ENERGY