THE NATIONAL RENEWABLE ENERGY PROGRAM: The Road Starts Here

Transcription

1 THE NATIONAL RENEWABLE ENERGY PROGRAM: The Road Starts Here European Union-Philippines Meeting on Energy Mandarin Oriental, Philippines February 27, 2012 JOSE M. LAYUG, JR. Undersecretary Department of Energy Republic of the Philippines

2 DISCUSSION OUTLINE The National Renewable Energy Program (NREP) Statutory Basis The NREP Basics Fundamental Principles Energy Supply and Power Mix Resource Targets Comparative Resource Production and RE Utilization Policy Considerations

3 STATUTORY BASIS This Act shall establish the framework for the accelerated development and advancement of renewable energy resources, and the development of a strategic program to increase its utilization Section 3, Renewable Energy Act of 2008

4 STATUTORY BASIS NREB shall recommend specific actions to facilitate the implementation of the National Renewable Energy Program to be executed by the DOE and other appropriate agencies of government and to ensure that there shall be no overlapping and redundant functions within the national government departments and agencies concerned Section 27, Renewable Energy Act of 2008

5 NATIONAL RENEWABLE ENERGY PROGRAM Launched on June 14, 2011 Signals big leap from fragmented initiatives into a focused and sustained drive towards energy security and improved access to clean energy Sets indicative interim targets for delivery of RE within timeframe of a Living Document Requires periodic review to ensure it confirms to policy objectives of Renewable Energy Act of 2008 Issues on transmission, grid integration for intermittent RE resources, social and economic impact

6 NATIONAL RENEWABLE ENERGY PROGRAM Seeks to increase RE-based capacity to an estimated 15,304 MW by the year 2030, almost triple the 2010 level of 5,369 MW Institutionalizes a comprehensive approach to address challenges and gaps that prevent wider application of RE technologies in a sustainable manner Outlines action plans necessary to facilitate and encourage greater private section investments in RE development

7 NATIONAL RENEWABLE ENERGY PROGRAM RE-based On-Grid Capacity Installation Targets

8 BIOMASS PLANTS

9 GEOTHERMAL PLANTS

10 HYDRO PLANTS

11 WIND AND SOLAR PROJECTS

12 NATIONAL RENEWABLE ENERGY PROGRAM Increase geothermal by 75% Increase hydropower by 160% Deliver additional 277 MW biomass power capacities Attain wind power grid parity with 2,345 MW additional capacities Mainstream additional 284 MW solar power and aspirational target of 1,528 MW Develop 1 st ocean energy facility

13 NATIONAL RENEWABLE ENERGY PROGRAM FUNDAMENTAL QUESTION: WHY DOES THE PHILIPPINES HAVE AN AGGRESSIVE RE TARGET?

14 COMPARATIVE RE UTILIZATION Share of RE and Non-RE

15 NATIONAL RENEWABLE ENERGY PROGRAM

16 PRIMARY ENERGY SUPPLY MIX 2009 Imported Oil, 31.70% Indigenous Energy, 59.41% Oil, 2.40% Coal, 6.30% Natural Gas, 8.10% Hydro, 6.20% Geothermal, 22.50% Imported Coal, 8.70% Imported Ethanol, 0.10% Biomass, 13.60% Wind/Solar, 0.01% CME/Ethanol, 0.30%

17 PRIMARY ENERGY SUPPLY MIX 2010 Imported Oil, 33.6 Indigenous Energy, Oil, 2.3 Coal, 8.6 Natural Gas, 7.4 Hydro, 4.8 Geothermal, 21 Imported Coal, 8.6 Imported Ethanol, 0.3 Biomass, 13.1 Wind/Dolar, 0.01 CME/Ethanol, 0.3

18 POWER GENERATION MIX Wind, 0.1% Hydro, 15.8% Biomass, 0.02% Oil, 8.7% Solar, 0.002% Geother mal, 16.7% 2009 Coal, 26.6% Natural Gas, 32.1% Biomass, 0.04% Hydro, 11.5% Oil, 8.0% Geothermal, 14.7% 2010 Natural Gas, 28.8% Wind, 0.09% Solar, 0.002% Coal, 34.4%

19 CRUDE OIL IMPORTATION 2009 Saudi Arabia, 45.1 Indonesia, 0.5 Malaysia, 8.2 Others, 7 Middle East, 84.4 UAE, 20.3 Qatar, 16.7 Oman, 2.1 Iraq, 0.2

20 CRUDE OIL IMPORTATION 2010 Malaysia, 10.2 Others, 8.2 Middle East 81% Saudi Arabia, 45.3 UAE, 27 Indonesia, 0.7 Qatar, 6.4 Iraq, 1.2 Oman, 1

21 COMPARATIVE ENERGY DATA Country Oil Production Gas Production Coal Production RE Target China (coal 70%) 3.99 mb/d (5 th ) 94 bcm (8 th ) 3,240 Mt (1 st ) 30% (2035) Vietnam (coal) 300 kb/d (35 th ) 9.4 bcm (42 nd ) 44.1 Mt (17 th ) 5% (2020) Thailand (natural gas 66%) Indonesia (coal and oil) Malaysia (natural gas 60%) Taiwan (nuclear, oil and natural gas) 380 kb/d (32 nd ) 30.8 bcm (25 th ) 17.9 Mt (25 th ) 25% (2021)* (currently 2%) 1.09 mb/d (21 st ) 82.8 bcm (12 th ) Mt (6 th ) 25% (2025)* (currently 4%) 693 kb/d (27 th ) 58.6 bcm (16 th ) 78 Mt 17% (2030)* (currently 5%) 276 kb/d (37 th ) 310 m3 (71 st ) N/A 15% (2025)* (currently 8%) India (coal 53%) 878 kb/d (24 th ) 120 bcm (5 th ) Mt (3 rd ) 15.9% (2022) (currently 11%) South Korea (oil, coal and nuclear) PHILIPPINES (coal and gas) 48 kb/d (65 th ) 532 m3 (66 th ) 3 MMst (short tons) 10% (2022) 9 kb/d (85 th ) 3.1 bcm (52 nd ) 7.2 Mt (31 st ) 50% (2030) (currently 30%)

22 DOE OPTIMIZATION Final Installation Targets: Maximize cheaper technologies (run-of-river hydro and biomass) Manage more expensive RE resources (wind, solar, ocean) RPS and FIT: Bi-annual review of installation targets Annual assessment of FIT and FIT-Allowance, Degression Encourage cheaper RE resources development DOE conducted separate FIT study with lower amounts 22

23 NATIONAL RENEWABLE ENERGY PROGRAM The expected milestones over the period 2011 to 2030

24 POLICY CONSIDERATIONS Constraints in promoting RE Current state of electricity prices Bureaucratic process and litigious orientation Current policies to promote RE RE Law fiscal and non-fiscal incentives Appropriate electricity pricing policies Future policy requirements to commercialize RE Bidding for allocation and FIT? Capping RE targets?

25 NATIONAL RENEWABLE ENERGY PROGRAM

26 THE ROAD STARTS HERE

27 THE NATIONAL RENEWABLE ENERGY PROGRAM: The Road Starts Here European Union-Philippines Meeting on Energy Mandarin Oriental, Philippines February 27, 2012 JOSE M. LAYUG, JR. Undersecretary Department of Energy Republic of the Philippines