ENERGY EFFICIENCY USING SOLAR AIRCON IN THE PHILIPPINES

Transcription

1 ENERGY EFFICIENCY USING SOLAR AIRCON IN THE PHILIPPINES Inter-regional Workshop on Energy Efficiency Investment Project Pipeline UNCC, Bangkok, Thailand April 23-24, 2014 Presented by : Felix Richard A. Cordova, President & CEO Maria Miranda C. Cordova, EVP & COO

2 Location of the Philippines

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4 REPUBLIC ACT 9513 Renewable Energy Act of 2008 AN ACT PROMOTING THE DEVELOPMENT, UTILIZATION AND COMMERCIALIZATION OF RENEWABLE ENERGY RESOURCES AND FOR OTHER PURPOSES

5 FEED-IN TARIFF IN PHILIPPINES RE TYPE PROPOSED FIT RATE (Peso) APPROVED FIT RATE (Peso) TARGET MW IN 3YRS SOLAR WIND BIOMASS RIVER HYDRO MW 200 MW 250 MW 250 MW No Approved rate for Ocean energy, but target installation was set at 50MW Note : Average power rate in the Philippines is Ps or 0.28 USD per kwhr

6 Challenges of RE in Philippines: 1. Regulatory delays in the implementation of the law 2. FIT rates are lower than proposed rates 3. Limiting target installation vs service contracts already awarded 4. Huge risk on the part of RE developers which is required to put up the plant first before FIT awarding 5. Uncertainty with regards to FIT payment and unclear collection guidelines

7 ENERGY EFFICIENCY & CONSERVATION POLICIES ADMINISTRATIVE ORDER NO DIRECTING THE INSTITUTIONALIZATION OF A GOVERNMENT ENERGY The Government shall aim to reduce its monthly consumption of electricity (in kilowatt-hours) and petroleum products (in liters) by at least ten percent (10%) EXECUTIVE ORDER NO. 123 (September 8, 1993) INSTITUTIONALIZING THE COMMITTEE ON POWER CONSERVATION AND DEMAND MANAGEMENT The Committee on Power Conservation and Demand Management, hereinafter referred to as the Committee, is hereby established as a regular and permanent body with the Chairman of the Council of Advisers on Energy Affairs as its Chairman and at least one representative from each of the following agencies as members: Department of Energy; Department of Education, Culture, and Sports; Department of Trade and Industry; Department of Interior and Local Government; Department of Labour and Employment; Metro Manila Authority; National Power Corporation; Philippine National Oil Corporation and the National Electrification Administration. EXECUTIVE ORDER NO. 472 Institutionalizing the Committee on Fuel conservation and Efficiency in Road Transport signed on 25 March It aims to disseminate information on efficiency utilization of fuel through the local chapters created for the purpose. The program targets a 10% reduction in fuel consumption. DEPARTMENT CIRCULAR To all Industrial, Commercial and Transport Sectors: Establishments consuming 1 million LOE annually are required to submit Quarterly Energy Consumption Report (QECR) to DOE. In addition, establishments consuming 2 million LOE, apart from the QECR are required to submit an Annual Energy Conservation Program Report (AECPR)

8 ENERGY EFFICIENCY BILLS PENDING IN SENATE SENATE BILL NO. : 3321 Introduced by: HON. SERGIO R. OSMEÑA ENERGY EFFICIENCY AND CONSERVATION ACT OF 2012 (Filed November 5, 2012) AN ACT INSTITUTIONALIZING ENERGY EFFICIENCY AND CONSERVATION, ENHANCING THE EFFICIENT USE OF ENERGY, AND GRANTING INCENTIVES TO ENERGY EFFICIENCY AND CONSERVATION PROJECTS, AND FOR OTHER PURPOSES. SENATE BILL NO. :2027 Introduced by: HON. EDGARDO J. ANGARA ENERGY EFFICIENCY AND CONSERVATION ACT OF 2010 AN ACT PROMOTING THE ENHANCEMENT OF ENERGY EFFICIENCY AND CONSERVATION THROUGH THE DEVELOPMENT OF ENERGY EFFICIENT TECHNOLOGIES, STRENGTHENING ORGANIZATIONAL RELATIONSHIPS AND REINFORCEMENT OF RELATED LAWS AND OTHER STATUTORY PROVISIONS ON ENERGY. SENATE BILL NO.: 1602 Introduced by: HON. MIRIAM DEFENSOR SANTIAGO AN ACT TO SUPPORT THE RESEARCH AND DEVELOPMENT OF NEW INDUSTRIAL PROCESSES AND TECHNOLOGIES THAT OPTIMIZE ENERGY EFFICIENCY AND ENVIRONMENTAL PERFORMANCE, UTILIZE DIVERSE SOURCES OF ENERGY, AND INCREASE ECONOMIC COMPETITIVENESS.

9 ANOTHER INNOVATION IN SOLAR THERMAL AND AIR CONDITIONING TECHNOLOGY.. SOLAR-ASSISTED AIRCON SAVE 30 50% ON POWER

10 SPLIT TYPE AC SYSTEMS

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12 PARTIAL LIST OF CLIENTS GTZ DENR OFFICE CEBU IWAKAMI CORPORATION

13 POWER CONSUMPTION COMPARATIVE STUDY ( CONDUCTED BY A TELECOM COMPANY)

14 SCOPE OF STUDY Temp Setting at 22degrees C Conducted in 15 days

15 ACTUAL DATA (15 DAYS OBSERVATION) AC TYPE AVE.LOAD CURRENT AVE. VOLTAGE READING DATE OPERATION STARTED TIME OPERATION ENDED INITIAL READING DATE TIME INITIAL READING BRANDX (3TR, CS) AUG- 11 2:30PM AUG- 11 2:30PM SEDNA AIRE (3TR, CS) AUG- 11 3:10PM SEPT -11 3:10PM

16 KWH $AVE: Actual KWH Consumption BRAND XX (Conv. AC) SEDNA AIRE KWH/15days or 1,062KWH/month Or 42%

17 ENERGY COST 1,062KWH/month x PHP12/KWH PHP12,744 COST of Sedna Aire 3TR PHP 185,000

18 RETURN ON INVESTMENT 185,000 12, months

19 THE BUSINESS POTENTIAL FOR SOLAR AIRCON: REPLACEMENT OF OLD 3 TONNER UNITS IN THE PHILIPPINES

20 3 MILLION OLD UNITS WHICH ARE CONVENTIONAL AIRCON INSTALLED IN THE PHILIPPINES APPROXIMATE COST TO REPLACE Ps 185,000 x 3M = Ps 555,000,000, or (Project cost) USD 12.6B

21 With3M Units POTENTIAL ENERGY SAVINGS 1,062KWHRS X 3M 3.18B KWHRS/MO

22 1% Potential Target 99% POTENTIAL MARKET: 3Million TARGET: ONLY 40,000

23 TARGET in 5 Years 40,000 units 3TR x $4,204.54/unit USD 168.1M

24 $168M Leasing? We get leasing lines from banks for 3yrs. And offer subleasing to clients for 5-6 yrs with O & M contract

25 FINANCING AVAILABLE SUSTAINABLE ENERGY FINANCE

26 Solar Aircon - Success Factors 1. The Philippines is a tropical country enjoying the sun in most parts of the year 2. The electricity tariff is among the highest in the region (at Php 12 or.28usd for residential and small commercial) 3. As much as 50% of energy cost is used for cooling purposes, not only in households but across industries in commercial and industrial nature 4. The public awareness on climate change is high especially with the series of unprecedented natural disasters in recent months 5. Solar aircon is energy efficient at the same time renewable energy 6. Increasing acceptance among users since its introduction in Promotes demand side management by reducing large portion of energy used for cooling 8. Reduces CO2 production

27 Solar Aircon Barriers 1. Solar Thermal technology was not considered in RE law, hence not covered by incentive 2. New technology means wait-and-see attitude among prospective clients although installations are working since Mainstream market acceptability 4. Everything is imported, we don t own the technology. 5. High Upfront Cost 6. No available 3 rd party testing facility for Solar Aircon 7. Promotion of the technology lacks government support 8. High Cost of Financing % of risks is borne by the project developer since we get leasing from the bank

28 WAY FORWARD. Establish ESCO Company Establish local assembly Strengthen technical capability Source low cost financing

29 THANK YOU FOR YOUR ATTENTION Manila : ; Cebu : ; Davao : ; Web : rickycordova@edwardmarcsphilinc.com www,edwardmarcsphil.com