Opportunities of Scaling up Wind Power in the Philippines

Transcription

1 Opportunities of Scaling up Wind Power in the Philippines Fortunato S. Sibayan Officer-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 Bank. 1

2 Power Sector Overview Population 83 million; 82% connected to the grid Energy Mix at 57% fossil fuel-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 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 ( ) 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

3 RE PLAN ( ) 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 RE Law, RE Subsidiary, Technology Roadmap & One-stop shop 2010 Small capacity RE projects are added to the grid; big RE projects are in the pipeline Emergence of ocean energy projects, e.g. OTEC, wave, marine current and tidal Commerciali- zation of ocean energy technologies OPTIMIZATION IMPROVE RE POLICIES DOUBLE RE CAPACITY OF RE AND PROGRAMS RESOURCES (5,300 MW) STRATEGIES 5

4 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/m 2 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

5 Wind Power Projects Northwind Wind Power Project Bangui Bay, Ilocos Norte Capacity: 33 MW ( MW) Height of hub : 70 m Cost = US$ 47.6 M

6 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.

7 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

8 STATUS of R.A 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)

9 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

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