Chevening Chat Series 4: REsolutions: Renewable Energy (RE) for Sustainable and Inclusive Development 20 January 2017; 1:00 PM - 5:00 PM at SEDA

Transcription

1 Chevening Chat Series 4: REsolutions: Renewable Energy (RE) for Sustainable and Inclusive Development 20 January 2017; 1:00 PM - 5:00 PM at SEDA Hotel BGC 1

2 incentive mechanism in the renewable energy sector by: Atty. Deborah Anastacia Layugan Market Operations Service Energy Regulation Commission; Chevening DISCLAIMER The slides in this presentation were prepared as talking points. It is possible that key substantive elements were delivered orally during presentation and are not present on the slides. Questions regarding content should be directed to the author. Moreover, the views expressed in presentations made at Chevening Chats Series or other CAFPI events are those of the speaker and not, necessarily, of CAFPI or its partner organizations. Presentations at CAFPI events, or the presence of organizations at CAFPI events, does not constitute an endorsement of the organization or speaker's views, products or services.

3 INCENTIVE MECHANISMS IN THE RENEWABLE ENERGY SECTOR Forum on RESolutions: Renewable Energy Solutions for Sustainable and Inclusive Development Debora Anastacia T. Layugan Market Operations Service Energy Regulatory Commission 3

4 RE Law Incentives Fiscal Incentives: Income tax holiday Duty-free importation Special realty tax rates Corporate tax rate after ITH Accelerated depreciation Zero VAT Non- Fiscal Incentives: ON-GRID Renewable Portfolio Standards Feed-in Tariff Renewable Energy Market Green Energy Option Net-metering Program OFF-GRID Min. RE generation Cash incentives 4

5 Features of Feed-in Tariff Mechanism Based on cost of a representative project Technology-specific 20-year duration Subject to degression and adjustments Subject to review 5

6 Approved Feed-in Tariffs (FITs) RE Technology Feed-In-Tariff (FIT) Rates (PhP/kWh) Installation Targets (MW) SOLAR SOLAR WIND WIND BIO-MASS ROR HYDRO

7 The Overall FIT Framework TransCo FIT-ALL 7

8 The FIT-All Collected from Consumers TRANSCO ERC FIT-ALL Uniform /kwh charge Payable by all electricity users Periodically calculated and set Based on forecasted RE deliveries Proceeds go to a fund administered by Transco from where the RE payments will be sourced 8

9 Approved & Proposed Feed-In Tariff Allowance (FIT-All) Particular PhP/kWh Remarks FIT-ALL for CY s 2014 and ERC Case No RC Decision dated 29 September 2015 FIT-ALL CY Provisional Authority ERC Case No RC, Order dated 16 February 2016 FIT-ALL CY 2017 (New Application) ERC Case No RC filed on 01 December

10 Approved Installation Target & Level of Subscription RE Technology Installation Target (MW) Subscribed Capacity (MW)* Balance (MW) No. of RE Plants* Solar Wind Biomass ROR HYDRO * Based on Certificates of Endorsement (COEs) issued by the DOE as of 09 January

11 Net Metering for RE DUs to enter into Net-Metering agreements with qualified end-users ERC and NREB to develop interconnection standards and pricing methodology and other commercial arrangements Net metering Rules promulgated 11

12 Scope, Applicability & Qualification Applicable to on-grid systems. Only for installation of < 100kW. For eligible RE Technologies such as wind, solar, biomass or biogas or other RE systems capable of being installed in the QE s premises. End-user should be in good credit standing in the payment of electric bills to the DU. The RE System must be compliant with the standards set in the PEC, PDC, DSOAR and the Net-Metering Interconnection Standards. 12

13 Interconnection Set-Up Import Meter (delivered energy) REC Meter Export Meter (received energy) Either 2 uni-directional meters or one bi-directional meter. Third meter may also be installed to measure total RE generation. 13

14 Pricing Methodology P Generation Transmission Distribution End-User P P SL: P DSM: P Subs: P Tax: P UC: P P /kWh + + = 14

15 NET-METERING CUSTOMERS GRID No. of Qualified End-Users* Capacity (MWp) Luzon Visayas Mindanao Total * As of 31 December

16 Other On-grid Incentive Mechanisms Renewable Portfolio Standards Green Energy Option Renewable Energy Market 16

17 Renewable Energy Investments 17

18 Scaling up of Variable Renewable Energy 18

19 POLICY FRAMEWORK Removal of the first-commissioned, first entitled policy Shift from cost-based Feed-in Tariff to auction type mechanism Subsidy for the payment of FIT-allowance Implementation of Renewable Portfolio Standards and Renewable Energy Market 19

20 Challenges New industry, learning curve Preparedness of stakeholders Penetration management vis-à-vis capacity and pricing Limited resources and capacity Legislative nature of approval process Scarce information dissemination activities 20

21 THANK YOU! 21

22 Chevening Chat Series 4: REsolutions: Renewable Energy (RE) for Sustainable and Inclusive Development 20 January 2017; 1:00 PM - 5:00 PM at SEDA Hotel BGC 22 DISCLAIMER The slides in this presentation were prepared as talking points. It is possible that key substantive elements were delivered orally during presentation and are not present on the slides. Questions regarding content should be directed to the author. Moreover, the views expressed in presentations made at Chevening Chats Series or other CAFPI events are those of the speaker and not, necessarily, of CAFPI or its partner organizations. Presentations at CAFPI events, or the presence of organizations at CAFPI events, does not constitute an endorsement of the organization or speaker's views, products or services.