INCREASING POWER SUPPLY AND ENERGY ACCESS TO CLEAN ENERGY MINI-GRIDS IN THE PHILIPPINES

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1 INCREASING POWER SUPPLY AND ENERGY ACCESS TO CLEAN ENERGY MINI-GRIDS IN THE PHILIPPINES PHILIPPINES MINI-GRID B2B FORUM Manila Hotel, Manila September 2018 RENE M. FAJILAGUTAN GM ROMELCO/President AIEC

2 Association of Isolated Electric Cooperatives, Inc. Date registered with SEC July 28, 2009 Membership- 40 Electric Cooperatives (Off-Grid and On-Grid) We support the Annual Application of NPC-SPUG with ERC relative the Availment of Subsidy from UCME Participate on the Application of NPC-SPUG with the ERC relative to the SAGR Adjustment We Participate in Public Consultations for the Issuance of New Government Policies Affecting the operations of the ECs in the Off-Grids or SPUG Areas We Participate in Other Activities Affecting the Operation of the Member ECs

3 ECs RA 9136 Electricity and Power Industry Reform Act of 2001 (EPIRA) DC New Competitive Selection Process EC- Electric Cooperatives NPC- SPUG Total Electrification RE Developers NPC-SPUG - National Power Corporation Small Power Utilities Group RE - Renewable Energy NPP - New Power Providers QTP - Qualified Third Party NPPs QTPs

4 TCGR FCRR Php /kwh Php /kwh Php /kwh Economic Development SAGR Php /kwh SARR Php /kwh REDCI Php /kwh Php /kwh Viability/ Security Affordabilty Power Provider Consumers TCGR True Cost Generation Rate SAGR Socially Acceptable Generation Rate FCRR Full Cost Recovery Rate SARR Subsidized Approved Retail Rate REDCI For Renewable Energy Developer Cash Incentives UCME Subsidy Php /kwh FIGURES FROM NPC-SPUG APPLICATION FOR 2019 UCME AVAILMENT

5 Electrification Status of the EC s Franchise Area As of December ECs 24 PIOUs/LGUs 78 Provinces 90 Cities 1,385 Municipalities 36,051 Barangays 121,324 of 141,064 Sitio s or 86% M of M Consumers or 83.55%

6 Sitio Electrification Program Phase 2 Island Region Potential Serve to Date % Unserved Luzon 6,345,300 5,815, ,952 Visayas 3,765,800 3,241, ,040 Mindanao 4,474,500 3,129, ,345,116 Total 14,585,600 12,186, ,399,108 Island Region Unenergised Sitios Percentage Luzon 6,541 33% Visayas 4,664 24% Mindanao 8,535 43% Total 19, % Number of Operating Hours Underserved Areas and Households With NPC-SPUG Power Plants Number of Power Plants Number of Municipalities Number of Barangays Number of Households 12 to ,998 Less than ,015 Total ,013 Source: NPC-SPUG

7 1. LOCATIONS - Outlying Areas in the hinterlands - Remote Small Islands 2. DEVELOPMENT - Choice of Appropriate Technology - Construction 3. SUSTAINABILITY - Economics of Operation - Technical (O & M) 4. CAPACITY TO PAY OF THE CONSUMERS 5. REGULATIONS - RE Service Contracts - Tariff Applications

8

9 1997 Solar Home System 77wp P150/month (P17/kWh) Lease to Own 15 yrs kW Diesel Power Plant 8-hr service ROMELCO owned kW Cobrador Solar Hybrid System 24-hr service Partnership KEA, ADB, NEA,ROMELCO

10 CANTINGAS MINI-HYDRO POWER PLANT - 1 ST RE in Commercial Operation under RA sr RE to claim from 50% Cash Incentives - Eliminate power curtailment due to lack of Diesel - TCGR is lower than SAGR, Php /kwh by 2024, less than P2.00/kwh - Annual Energy Contribution, % (Sibuyan Island) - Partnership/ Joint Venture - Avail Commercial Loan Php M, DBP, NEA, REFC 30 KW COBRADOR SOLAR HYBRID SYSTEM - 1 ST Solar Hybrid System in the Philippines Partners - KEA, ADB, NEA, ROMELCO - Provide 24 hrs Electricity to 244 HH 22 KW BIOMASS GASIFIER - Able to provide Electricity to 52 HH - Partner - DOE - Hybrid Grass as Fuel

11 1. FINANCING THE PROJECT - Partnership/Joint Venture - Equity Investor - Donors for Grant Fund - Commercial Loans 2. DEVELOPMENT - Seek approval of the member-consumer-owners - Hire Technical/Financial Consultants - Use indigenous materials and skills 3. TECHNICAL SKILLS - Constantly train our personnel 4. REGULATIONS - Follow the existing rules

12 RENE M. FAJILAGUTAN

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