The Impacts of Customers' Zero-Export Solar PV Installations To The Distribution Service of Meralco

THE IMPACTS OF CUSTOMERS’ ZERO-EXPORT
SOLAR PV INSTALLATIONS TO THE DISTRIBUTION

SERVICE OF MERALCO
Ernesto B. Victorino, Jr.
Manila Electric Company
44th IIEE ANC, November 29, 2019
We are the largest power distribution company in the
Philippines serving close to 27 million Filipinos in 111 cities
and municipalities, and in a franchise area of over 9,685 km2.
We serve the country’s social, political and economic centers

where 50% of GDP is being produced.
We are US$7.4 billion company, serving our customer for the

past 115 years, with the commitment to be the total energy
solutions provider of choice in the Philippines.
2
PV Rooftop Installations
The energy generated by the PV Facilities is fully consumed by the loads of the
customer (load displacement or own-use).
Customer
9 MW Total Load 1 MW Customer’s Zero-Export PV Facilities
= 10 MW
3
Price Trend of Solar Panel vs. Global Solar Panel Installations
(image c/o https://cleantachnica.com)

4
Trend of Zero-Export PV Installations of Commercial and Industrial Customers of MERALCO
Zero-Export PV Installations (kWac)
12,000.00
Increased by 1,534% in
10,000.00
a period of three years
8,000.00
6,000.00
4,000.00
10,739.42
2,000.00 5,045.48
700.00 4,680.54
- 313.40
2014
2015
2016
2017
Total (As of 2017)
5
Objectives of Study
• To determine the commercial and technical impacts

of customers’ zero-export solar PV installations on
the distribution service of MERALCO specifically on
their energy consumption in kWh, kW demand,
power factor, and electricity bill.
• To estimate the economic viability of PV rooftop

installations.
6
Methodology for the Study
• kWh Consumption
versus • kW Demand
• Power Factor
• Monthly Bill
Average of Average of • Average Displaced kW

electric bills electric bills • Average Savings
before after • Estimated Payback
installation installation Period
Note: Study did not consider if the customer increased its load after installation of their PV facilities
7
Profile of Customers Zero-Export Solar PV Facilities
Total of 30
Installations
8
Aggregate
Capacity of
10,739.42 kW
9
Load Factors of Customers Prior to Installation of PV Facilities
Capacity
Industry Customer (In Percent)
(in kW-AC)
Mfg-Fabricated Metals Customer 1 583.44 Industry

Mfg-Motor Vehicle Parts Customer 2 552 Min Ave Max
Retail-Large Harware Customer 3 207.9
Classification
Svc-Meat/Cold Storage Customer 4 120 Government
Mfg-Plastic/Textiles Customer 5 100 45 49 54
Svc-Engineering and Construction Customer 6 95.68 Services
Research-Rice Customer 7 810
Svc-Meat/Cold Storage Customer 8 175 Manufacturing-
Svc-Meat/Cold Storage Customer 9 183.6 41 54 67
Svc-Meat/Cold Storage Customer 10 50 Plastic/Textiles
Svc-Meat/Cold Storage Customer 11 503.5
Mfg-Noodles and Biscuits Customer 12 1200 Manufacturing-
Mfg-Plastic/Textiles Customer 13 500
28 60 79
Govt-Hospital Customer 14 118.8
Others
Svc-Book Publishing Customer 15 178.5 Research
Retail-Malls Customer 16 1680 54 54 54
Retail-Malls Customer 17 73.4 Facilities
Svc-Meat/Cold Storage Customer 18 225
Svc-Meat/Cold Storage Customer 19 240 Retail-Large
Svc-Meat/Cold Storage Customer 20 225 26 37 46
Retail-Malls Customer 21 700 Hardware
Mfg-Cigars Customer 22 100
Govt-Police HQ Customer 23 410
Retail-Malls 40 48 52
Mfg-Plastic/Textiles
Retail-Large Harware
Customer 24
Customer 25
294
448.8
Services-
Retail-Large Harware Customer 26 244.8 Meat/Cold 37 61 74
Retail-Large Harware Customer 27 180
Retail-Large Harware Customer 28 180 Storage
Retail-Large Harware Customer 29 180
Svc-Meat/Cold Storage Customer 30 180 Services-Others 29 35 40
Total Capacity Installed/ Average Age of Installations 10,739.42 10
Impact on Energy (kWh) Consumption kWh Profile of Customer 11 (Cold Storage Facility)
% Change in
Capacity
Industry Customer kWh
(in kW-AC)
Consumption
Svc-Meat/Cold Storage Customer 11 503.5 -35.4%
Svc-Book Publishing Customer 15 178.5 -25.1%
Retail-Malls Customer 21 700 -24.4%
Svc-Engineering and Construction Customer 6 95.68 -24.3%
Retail-Large Harware Customer 26 244.8 -21.0%
Svc-Meat/Cold Storage Customer 18 225 -18.4%
Research-Rice Customer 7 810 -14.4%
Retail-Large Harware Customer 28 180 -14.1%
Retail-Malls
Customer 13
Customer 16
500
1680
-10.6%
-8.6%
kWh Profile of Customer 13 (Foam Manufacturer)
Mfg-Cigars Customer 22 100 -7.2%
Mfg-Motor Vehicle Parts Customer 2 552 -6.3%
Mfg-Fabricated Metals Customer 1 583.44 -3.6%
Govt-Police HQ Customer 23 410 1.5%
Retail-Large Harware Customer 3 207.9 2.0%
Mfg-Noodles and Biscuits Customer 12 1200 8.6%
Mfg-Plastic/Textiles Customer 5 100 9.5%
Govt-Hospital Customer 14 118.8 16.3%
Svc-Meat/Cold Storage Customer 9 183.6 19.7%
Svc-Meat/Cold Storage Customer 30 180 81.5%
Retail-Malls Customer 17 73.4 305.8%
11
Impact on Energy (kWh) Consumption
% Change in
Capacity
Industry Customer kWh
(in kW-AC)
Consumption
Svc-Engineering and Construction Customer 6 95.68 -24.3% The kWh
consumptions of
Research-Rice Customer 7 810 -14.4% 20 of the 30
Svc-Meat/Cold Storage Customer 8 175 -13.7% customers have
Svc-Meat/Cold Storage Customer 10 50 -13.7% been reduced by
Retail-Large Harware Customer 27 180 -11.6% an average of
Svc-Meat/Cold Storage Customer 19 240 -11.5% 14.2% per month
Mfg-Plastic/Textiles Customer 13 500 -10.6%
Mfg-Motor Vehicle Parts Customer 2 552 -6.3%
Mfg-Fabricated Metals Customer 1 583.44 -3.6%
Govt-Police HQ Customer 23 410 1.5%
12
kWh Profile of Customer 11 (Cold Storage Facility)
Rank 1:
503.5 kWac,
35.4%
reduction
EM – Energization Month
13
kWh Profile of Customer 13 (Foam Manufacturer)
Rank 14:
500 kWac,
10.6 %
reduction
EM – Energization Month
14
Impact on kW Demand kW Profile of Customer 15 (Book Publisher)
Capacity % Change in
Industry Customer
(in kW-AC) kW Demand

Research-Rice Customer 7 810 -15.1%
Svc-Engineering and Construction Customer 6 95.68 -7.8%
Retail-Malls Customer 21 700 -2.0% kW Profile of Customer 28 (Large Hardware)
Govt-Police HQ Customer 23 410 -1.1%
Mfg-Motor Vehicle Parts Customer 2 552 2.4%
Mfg-Fabricated Metals Customer 1 583.44 5.1%
Retail-Malls Customer 17 73.4 268.6%
Govt-Hospital Customer 14 118.8 #DIV/0!
15
Impact on kW Demand
The kW demands
of 18 of the 30
customers have
been reduced by
an average of
7.4% per month
16
Impact on kW Demand
kW Profile of Customer 5 (Book Publisher)

Rank 1:
178.5 kWac,
19.6%
reduction
17
Impact on Power Factor of Customers Power Factor Profile of Customer 26 (Large Hardware)
Power
Industry Customer Factor
(in kW-AC) Power Factor
After PVS
Retail-Large Harware Customer 26 244.8 78.67 -6.8%
Retail-Large Harware Customer 27 180 80.87 -5.7%
Svc-Meat/Cold Storage Customer 8 175 82.93 -5.1%
Svc-Meat/Cold Storage Customer 11 503.5 89.42 -4.3%
Retail-Malls Customer 16 1680 91.49 -2.7%
Svc-Book Publishing Customer 15 178.5 93.01 -2.1%
Mfg-Plastic/Textiles Customer 13 500 91.27 -1.3%
Retail-Large Harware Customer 3 207.9 92.79 -1.3% Power Factor Profile of Customer 19 (Cold Storage)
Research-Rice Customer 7 810 94.57 -0.9%
Mfg-Noodles and Biscuits Customer 12 1200 83.17 -0.6%
Mfg-Cigars Customer 22 100 88.71 -0.4%
Mfg-Motor Vehicle Parts Customer 2 552 96.41 -0.2%
Svc-Engineering and Construction Customer 6 95.68 99.75 -0.2%
Mfg-Fabricated Metals Customer 1 583.44 99.02 0.0%
Govt-Police HQ Customer 23 410 96.16 0.1%
Retail-Large Harware Customer 29 180 99.53 0.1%
Retail-Malls Customer 17 73.4 98.76 1.4%
Svc-Meat/Cold Storage Customer 9 183.6 72.58 4.3%
Svc-Meat/Cold Storage Customer 4 120 96.55 7.7%
Govt-Hospital Customer 14 118.8 0.00 #DIV/0!
18
Impact on Power Factor of Customers
Power
Industry Customer Factor
(in kW-AC) Power Factor
After PVS
Svc-Meat/Cold Storage Customer 11 503.5 89.42 -4.3% The power
Retail-Malls Customer 21 700 88.90 -2.4% factors of 24 of
Svc-Book Publishing
Svc-Meat/Cold Storage
Customer 15
Customer 18
178.5
225
93.01
83.96
-2.1%
-2.1%
the 30
Svc-Meat/Cold Storage Customer 19 240 81.26 -2.0% customers have
Retail-Large Harware Customer 3 207.9 92.79 -1.3% deteriorated by
Research-Rice
Customer 7
Customer 30
810
180
94.57
91.83
-0.9%
-0.9%
an average 2.3%
Mfg-Noodles and Biscuits Customer 12 1200 83.17 -0.6%
Mfg-Cigars Customer 22 100 88.71 -0.4%
Mfg-Motor Vehicle Parts Customer 2 552 96.41 -0.2%
Svc-Engineering and Construction Customer 6 95.68 99.75 -0.2%
Mfg-Fabricated Metals Customer 1 583.44 99.02 0.0% 19
Impact on Power Factor of Customers
Power Factor Profile of Customer 26 (Large Hardware)
Rank 1:
244.8 kWac,
Average
PF = 78.67%
20
Impact on Electricity Bill
Industry Customer
(in kW-AC) Monthly Bill
Retail-Malls Customer 16 1680 -60.2% << Disregarded due to change in RES

Svc-Book Publishing
Customer 19
Customer 15
240
178.5
-24.8%
-19.6% The electricity
Svc-Engineering and Construction
Mfg-Motor Vehicle Parts
Customer 6
Customer 2
95.68
552
-17.6%
-13.7% bills of 18 of the
Svc-Meat/Cold Storage Customer 10 50 -8.0% 30 customers
Govt-Police HQ Customer 23 410 -5.2% have been
Retail-Large Harware Customer 26 244.8 -3.9% reduced by an
Retail-Large Harware Customer 25 448.8 -3.2% average 10.9%
Research-Rice Customer 7 810 -2.8% per month
Retail-Large Harware Customer 29 180 0.5%
Mfg-Fabricated Metals Customer 1 583.44 2.2%
Govt-Hospital Customer 14 118.8 19.5%
Retail-Malls Customer 17 73.4 237.0% 21
Displaced kW versus Installed Capacity Electricity Bill Profile of Customer 22 (Cigar Manufacturer)
Installed Ave. Monthly
Installed
Capacity/Ave. Displaced
Industry Customer Capacity
12-mo. Peak kW/Installed
(in kW-AC)
Demand Capacity
Mfg-Cigars Customer 22 100 9.1% -68.9%
Research-Rice Customer 7 810 24.6% -61.2%
Svc-Book Publishing Customer 15 178.5 37.6% -52.0%
Svc-Meat/Cold Storage Customer 18 225 34.8% -26.7%
Svc-Meat/Cold Storage Customer 11 503.5 76.3% -23.0%
Retail-Large Harware Customer 27 180 46.3% -15.3%
Svc-Engineering and Construction Customer 6 95.68 60.2% -13.0%
Mfg-Plastic/Textiles Customer 13 500 65.6% -13.0%
Retail-Large Harware Customer 26 244.8 57.8% -12.0%
Govt-Police HQ Customer 23 410 9.6% -11.7%
Retail-Malls Customer 16 1680 48.1% -7.7%
Svc-Meat/Cold Storage Customer 10 50 90.5% -7.7% Electricity Bill Profile of Customer 26 (Research Institute)
Retail-Malls Customer 21 700 77.9% -2.5%
Retail-Large Harware Customer 3 207.9 59.4% -1.2%
Govt-Hospital Customer 14 118.8 #DIV/0! 0.0%
Retail-Large Harware Customer 25 448.8 60.5% 4.1%
Svc-Meat/Cold Storage Customer 20 225 23.4% 4.8%
Mfg-Motor Vehicle Parts Customer 2 552 47.5% 5.1%
Mfg-Fabricated Metals Customer 1 583.44 25.9% 20%
Svc-Meat/Cold Storage Customer 9 183.6 91.8% 22.3%
Mfg-Plastic/Textiles Customer 24 294 40.7% 26.5%
Mfg-Noodles and Biscuits Customer 12 1200 11.3% 53.0%
Mfg-Plastic/Textiles Customer 5 100 18.8% 62.4%
Retail-Malls Customer 17 73.4 72.3% 371.7% 22
Displaced kW versus Installed Capacity
18 of the 30
Customers have
displaced their kW
demand.
The average is at
19.1% of the
Installed AC
Capacity
23
Displaced kW versus Installed Capacity
Electricity Bill Profile of Customer 26 (Research Institute)

Rank 2:
810 kWac,
Average
Displaced
kW = 61.2%
of Installed
Capacity
24
Estimated Payback Period of Customers’ Zero-Export PV Facilities
Installed
Ave. Change in Estimated Estimated
Capacity Capacity/Ave. Est. Annual
Industry Customer Monthly kWh Current Cost Recovery
(in kW-AC) 12-mo. Peak Savings (PHP)
Consumption of PV Facilities Period (Years)
Demand
Mfg-Fabricated Metals Customer 1 583.44 25.9% -29,439 -3,161,775 65,345,280 20.7
Mfg-Motor Vehicle Parts Customer 2 552 47.5% -42,562 -4,571,195 61,824,000 13.5
Retail-Large Harware Customer 3 207.9 59.4% 1,775 not computed 23,284,800 not computed • 19 customers =
Customer 4
Customer 5
120
100
68.9%
18.8%
82,323
15,167
not computed
not computed
13,440,000
11,200,000
not computed
not computed
2.8 to 20.7 Years;
Svc-Engg and Construction Customer 6 95.68 60.2% -8,253 -886,408 10,716,160 12.1
Research-Rice
Customer 7
Customer 8
810
175
24.6%
90.5%
-184,800
-17,322
-19,847,520
-1,860,383
90,720,000
19,600,000
4.6
10.5
• 10 customers =
Svc-Meat/Cold Storage Customer 9 183.6 91.8% 16,176 not computed 20,563,200 not computed with higher kWh
Svc-Meat/Cold Storage Customer 10 50 90.5% -17,322 -1,860,383 5,600,000 3.0
Svc-Meat/Cold Storage Customer 11 503.5 76.3% -127,055 -13,645,671 56,392,000 4.1
consumptions
Mfg-Noodles and Biscuits Customer 12 1200 11.3% 485,201 not computed 134,400,000 not computed
Mfg-Plastic/Textiles Customer 13 500 65.6% -29,983 -3,220,210 56,000,000 17.4
Govt-Hospital Customer 14 118.8 n.a.
#DIV/0! 159,142 not computed 13,305,600 not computed • 1 customer =
Svc-Book Publishing Customer 15 178.5 37.6% -35,293 -3,790,504 19,992,000 5.3 more than 25
Retail-Malls Customer 16 1680 48.1% -115,889 -12,446,470 188,160,000 15.1
Retail-Malls Customer 17 73.4 72.3% 269,675 not computed 8,220,800 not computed years;
Mfg-Cigars Customer 22 100 9.1% -36,729 -3,944,668 11,200,000 2.8
Govt-Police HQ Customer 23 410 9.6% 21,583 not computed 45,920,000 not computed
Mfg-Plastic/Textiles Customer 24 294 40.7% 49,927 not computed 32,928,000 not computed
Retail-Large Harware Customer 25 448.8 60.5% -33,780 -3,628,005 50,265,600 13.9
Retail-Large Harware Customer 27 180 46.3% -11,587 -1,244,408 20,160,000 16.2
Retail-Large Harware Customer 29 180 189.1% -733 -78,760 20,160,000 256.0
Svc-Meat/Cold Storage Customer 30 180 36.1% 110,915 not computed 20,160,000 not computed
25
-97,690,773
Installed
Capacity Capacity/Ave.
Ave. Change in
Est. Annual
Estimated Estimated • Meat/Cold
Industry Customer Monthly kWh Current Cost Recovery Storage = average
Demand 8.1 years
Svc-Meat/Cold Storage Customer 9 183.6 91.8% 16,176 not computed 20,563,200 not computed
Svc-Meat/Cold Storage Customer 11 503.5 76.3% -127,055 -13,645,671 56,392,000 4.1
Installed
Ave. Change in Estimated Estimated • Large Hardware =
Capacity Capacity/Ave. Est. Annual
Industry Customer
(in kW-AC) 12-mo. Peak
Monthly kWh
Savings (PHP)
Current Cost Recovery average 13.1
Demand years
Retail-Large Harware Customer 3 207.9 59.4% 1,775 not computed 23,284,800 not computed
Retail-Large Harware Customer 29 180 189.1% -733 -78,760 20,160,000 256.0
26
Capacity
Installed
Capacity/Ave.
Ave. Change in
Est. Annual
Estimated Estimated • Retail Malls =
Industry Customer Monthly kWh Current Cost Recovery average 12 years
Demand
Retail-Malls Customer 17 73.4 72.3% 269,675 not computed 8,220,800 not computed
Installed
Capacity Capacity/Ave.
Ave. Change in
Est. Annual
Estimated Estimated • Others = average
Industry Customer Monthly kWh Current Cost Recovery
(in kW-AC) 12-mo. Peak
Consumption
Savings (PHP)
of PV Facilities Period (Years)
10.9 years
Demand
Mfg-Fabricated Metals Customer 1 583.44 25.9% -29,439 -3,161,775 65,345,280 20.7
Mfg-Motor Vehicle Parts Customer 2 552 47.5% -42,562 -4,571,195 61,824,000 13.5
Svc-Engg and Construction Customer 6 95.68 60.2% -8,253 -886,408 10,716,160 12.1
Research-Rice Customer 7 810 24.6% -184,800 -19,847,520 90,720,000 4.6
Mfg-Noodles and Biscuits Customer 12 1200 11.3% 485,201 not computed 134,400,000 not computed
Mfg-Plastic/Textiles Customer 13 500 65.6% -29,983 -3,220,210 56,000,000 17.4
Govt-Hospital Customer 14 118.8 n.a.
#DIV/0! 159,142 not computed 13,305,600 not computed
Svc-Book Publishing Customer 15 178.5 37.6% -35,293 -3,790,504 19,992,000 5.3
Mfg-Cigars Customer 22 100 9.1% -36,729 -3,944,668 11,200,000 2.8
Govt-Police HQ Customer 23 410 9.6% 21,583 not computed 45,920,000 not computed
27
Caveat: Levelized Cost of Electricity (LCOE) Not Considered
LCOE measures the lifetime costs divided by the energy

production. For PV facilities, other cost considerations include
the following:
Levelized Cost
NREL Data on
of Energy
Commercial PV
(LCOE) for
a. Annual degradation Year System Cost
Commercial PV
(USD per Watt
b. Inverter replacement DC)
systems
(USD/kWh)
c. O&M expenses 2010 5.36 0.42
2011 4.97 0.38
d. Inverter efficiency 2012 3.42 0.26
e. Pre-inverter derate 2013 2.78 0.2
2014 2.76 0.19
f. Inverter loading ratio 2015 2.27 0.15
2016 2.17 0.13
g. Inflation rate 2017 1.85 0.12
h. Debt interest rate 2018 1.83 0.11
28
Summary of Findings
• Installation of Zero-Export PV Facilities
helped reduced the kWh consumption,
kW Demand, power factor, and electricity
bills of some MERALCO Customers.
• Out of 30 installations, 18 customers have
shown reduction in their electric bills. Levelized Cost of Energy (LCOE) for
• The average displaced kW is at 19.1% of 0.45

Commercial PV systems (USD/kWh)
the installed AC capacity. 0.4

0.35
• 19 of 20 customers were identified to

0.3
0.25
0.2
recover their full investment within its 0.15

0.1
useful life of 25 years. 0.05

0
• The estimated payback periods will likely 2010 2011 2012 2013 2014 2015 2016 2017 2018
be extended if the true cost of ownership

of the plant will be considered. 29
Recommendations
For Customers Planning to Install Their Own PV Facilities
• Understand the load profile of the business

• Install a capacity that is based on your average peak
demand
• Consider the true cost of ownership of the plant , and
• Identify the Levelized Cost of Energy (LCOE) before
proceeding with the investment and development
+
PV Installed
Capacity ≤ 50% of
CAPD
Customer Average
PV Installed Capacity Peak Demand
LCOE ? and P/KWH? ≤ 50% of Customer (CAPD)
Average Peak
Demand
30
Recommendations
For the Distribution Utilities
• Help educate the Customers
on the technical and
commercial impacts of PV
installations on their
electricity bills.
Reference: https://spectrum.net.ph
31
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MARAMING SALAMAT PO
ebvictorinojr@meralco.com.ph
33

The Impacts of Customers' Zero-Export Solar PV Installations To The Distribution Service of Meralco

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THE IMPACTS OF CUSTOMERS’ ZERO-EXPORT

SOLAR PV INSTALLATIONS TO THE DISTRIBUTION

We serve the country’s social, political and economic centers

We are US$7.4 billion company, serving our customer for the

(image c/o https://cleantachnica.com)

Total (As of 2017)

• To determine the commercial and technical impacts

• To estimate the economic viability of PV rooftop

Average of Average of • Average Displaced kW

Mfg-Fabricated Metals Customer 1 583.44 Industry

Svc-Book Publishing Customer 15 178.5 -19.6%

kW Profile of Customer 5 (Book Publisher)

Retail-Malls Customer 16 1680 -60.2% << Disregarded due to change in RES

Electricity Bill Profile of Customer 26 (Research Institute)

LCOE measures the lifetime costs divided by the energy

• The average displaced kW is at 19.1% of 0.45

the installed AC capacity. 0.4

• 19 of 20 customers were identified to

recover their full investment within its 0.15

useful life of 25 years. 0.05

be extended if the true cost of ownership

For Customers Planning to Install Their Own PV Facilities

• Understand the load profile of the business

CEPSI 2020 PHILIPPINES

The Philippines is hosting the largest energy utility Our Theme:

✓ Submit and present papers to the energy community Smart

For inquiries, visit us at www.aesieap.com

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