Sustainable Energy Eco-Systems

Sustainable Energy Systems
02 February 2016
Drivers: Energy Supply and Consumption
Continuous Population Growth and Urbanization

2010 2035
Urban 45.6 Million 82.5 Million Projected Annual
Growth Rate: ~1.5%
Rural 47.4 Million 52.7 Million (2010 to 2035)
Total 93.0 Million 135.2 Million
Rapid economic growth should lead to increased per capita

energy consumption
10
8
6 Projected Average Annual
4 GDP Growth Rate: 4.5%
2 (2010 to 2035)
0
2008 2009 2010 2011 2012 2013 2014
Source: ADB, 2013 Renewable Energy Association of the Philippines 2
Drivers: Energy Supply and Consumption
Energy Poverty: Low per capita consumption of

households likely affected by the high cost of electric power
Ratio of Electric Power Consumption Spending to Per

Capita Household Expenditures
3.5%
3.0%
3.0%
2.5%
1.9%
2.0% 1.7%
1.5% 1.4%
1.5%
1.0%
0.5%
0.0%
Indonesia Philippines Singapore Thailand Japan
Source: JICA-IEEJ, 2013 as cited by del Mundo, 2014
Renewable Energy Association of the Philippines 3

Key Issues Affecting Energy Development
Continued dependence on fossil fuels and

imported energy
Climate mitigation/adaptation imperative
Improving access to basic energy services
Archipelagic nature of the country


imported energy

Continued dependence on fossil fuels
and imported energy
Composition of Primary Energy Requirements – Regional

MTOE
1,600
NRE
1,200 Hydropower
Natural Gas
800
Oil
400
Coal
0
1990 2000 2010 2015 2020 2025 2030 2035
Source: ADB, 2013
and imported energy
Primary Energy Supply Requirements - Philippines

2009 2010 2011 2012 2013 2014
Energy Energy Energy Energy Energy Energy
Supplied Share, % Supplied Share, % Supplied Share, % Supplied Share, % Supplied Share, % Supplied Share, %
, MTOE , MTOE , MTOE , MTOE , MTOE , MTOE
Oil 13.54 32.96 14.83 36.40 12.72 31.96 13.09 31.13 13.74 30.60 14.87 31.30
Hydro 2.53 6.15 1.96 4.80 2.42 6.07 2.70 6.43 2.51 5.60 2.28 4.80
Geothermal 9.54 23.22 8.55 21.00 8.55 21.49 8.74 20.79 8.26 18.40 8.88 18.70
Coal 6.44 15.68 7.05 17.30 7.73 19.41 9.31 22.15 10.01 22.30 10.64 22.40
Renewable
5.73 13.95 5.34 13.10 5.12 12.86 5.07 12.06 7.50 16.70 7.79 16.40
Energy
Natural Gas 3.30 8.04 3.01 7.40 3.27 8.21 3.14 7.46 2.87 6.40 3.04 6.40
Total 41.07 100.00 40.73 100.00 39.80 100.00 42.04 100.00 44.90 100.00 47.50 100.00
Self ‐Sufficiency 57.90% 57.50% 59.57% 57.44% 56.90% 56.10%

and imported energy
Projected Energy Self-Sufficiency Levels (2035)

Brunei Darussalam
Australia
Indonesia 2012 Energy
Lao PDR Self Sufficiency
People's Republic of… Level = 57.4%
Cambodia
New Zealand
Malaysia
Myanmar
Thailand
Viet Nam
Japan
Philippines 2035 Energy
Republic of China Self Sufficiency
Hong Kong
Level = 14.5%
Singapore
0 0.2 0.4 0.6 0.8 1

Source: ADB, 2013

and imported energy
Imported Energy
Contribution of conventional fuels (Oil and Coal) in

the primary energy mix amounted to more than
53% in 2012 where:
Imported Oil = 119,695 MB (65.7%)

Imported Coal = 11.9 MMT (59.3%)

and imported energy
Electric Power Generation - Installed Capacity
Installed Capacity,
2008 2009 2010 2011 2012 2013 2014 2015
MW
Oil‐Based Power 3,353 3,193 3,193 2,994 3,074 3,353 3,476 3,608
Hydropower 3,291 3,291 3,400 3491 3,521 3,521 3,543 3,556
Geothermal 1,958 1,953 1,966 1783 1,848 1,868 1,918 1,918
Coal 4,213 4,277 4,867 4,917 5,568 5,568 5,708 5,843
Renewable Energy
34 64 73 117 153 153 437 666
(Solar/Wind/Biomass)
Natural Gas 2,831 2,831 2,861 2,861 2,861 2,862 2,862 2,862
Total 15,680 15,609 16,360 16,163 17,025 17,325 17,944 18,453

and imported energy
Risks: Continued Dependence on Imported Energy
Availability of supply threatened by global political and

economic events with a growing possibility for prices to be
influenced by the market power of exporting countries;
Availability and affordability of supply depends upon the
ability of national oil companies and multi-national oil
companies to make timely and adequate investments;
Continued pricing volatility as global supply of oil declines,
resulting to increased electricity tariffs and high retail prices
of petroleum based energy products.

and imported energy
Increasing Cost of Electric Power due to Price Volatility
The Philippines has one of the highest electricity rates in

Asia, ranging from PHP5.27 per kWh to PHP14.42 per
kWh, with an average price of PHP9.36 per kWh
(US¢21.10 per kWh)
Impact to Consumers
Loss of Convenience
Loss of Access to Energy Services
Decrease in Competitiveness

and imported energy
Average Cost of Electricity – Philippines (US¢21.10 per kWh
Electricity Price
Country (US¢ per kWh)
Indonesia 8.75 (Detik Finance, 2013)
Japan 19.07 to 25.42 (CleanTechnica, 2013)
Malaysia 7.09 to 14.76 (Tenaga Nasional Berhad, 2013)
Singapore 21.53 (Singapore Power, 2013)
South Korea 8.90 (Business Mirror, 2013)
Taiwan 7.00 to 17.00 (Taiwan Power, 2012)
Thailand 12.00 (Asian Power, 2013)
Vietnam 7.29 (Asia News Network, 2013)


imported energy

Climate Mitigation/Adaptation Imperative
The emission of Greenhouse

Gases (GHG) have resulted in
increasing the annual mean
temperature by 0.30oC to
0.62oC since 1951
At least 1/3 of greenhouse
gases comes from energy
production (CO2 emissions from
fossil fuels such as oil and coal)

46.0% of the total energy-related CO2

emissions result from the combustion of coal
50 44.0
41.0
38.0 World
40 36.0
33.5
32.0
30
23.5
19.6 Developing Asia
20 16.9
13.1 14.5
11.7
10
0
2010 2015 2020 2025 2030 2035
Source: ADB, 2013

National GHG Emissions Inventory
Estimated CO2 Emissions Year of GHG Percentage of Total

Data Source
(Thousands of Gigagrams) Inventory Emissions, %
50.0 1994 DENR 49
53.5 1998 Manila Observatory 51
69.7 2000 DENR 55
69.1 2009 DOE
NOTE: Aggregated, including transport, industrial, and power generation sub‐sectors. The Philippine
DOE set a cumulative target of 32 MTCO2e for CO2 emissions reduction in the Philippine Energy
Plan covering 2004 to 2013.


imported energy

Improving Access to Energy Services
Without Access to Electricity Dependent on Biomass for Cooking
Country Share of Total Population Share of Total
Population (million)
Population (%) (million) Population (%)
Bangladesh 88 54 149 91
People’s Republic of China 4 0 387 29
India 293 25 772 66
Indonesia 63 27 128 55
Pakistan 56 33 111 64
Philippines 16 17 47 50
Viet Nam 2 2 49 56
Rest of Developing Asia 106 34 171 54
Developing Asia 628 18 1814 51

World 1,267 19 2,588 38
Source: ADB, 2013; IEA, 2012

Electrification Rate (%)
Country
Total Urban Rural
Brunei 99.7 100.0 98.6
Cambodia 24.0 66.0 12.5
Indonesia 64.5 94.0 32.0
Lao PDR 55.0 84.0 42.0
Malaysia 99.4 100.00 98.0
Myanmar 13.0 19.0 10.0
Philippines 88.8 93.7 81.5
Thailand 99.3 100.0 99.0
Vietnam 89.0 99.6 85.0
Source: IEC Electricity Access Database, 2012; NEA, 2013; NEA,2015; World Bank, 2012

Electrification and Access to Basic Energy Services
Based on data from the DOE and NEA, the country has
attained 99% village/barangay electrification level in 2009.
Focus has shifted to a target of attaining a 90% household
electrification level by 2017.
Recent statistics from NEA estimated the current
household cluster/sitio electrification level to be 81.3%
during the third quarter of 2014, rising to 88.8% during the
last quarter of 2015.


imported energy

Archipelagic Nature of the Country
Difficult and costly

extension of the grid
Unreliable distribution
and transmission
Inadequate support
infrastructure

LUZON GRID
 No augmentation since 1999

 Metro Manila: 40% of country’s total load
 Loop System
i. Alternate route for North and South Luzon generators
 To accommodate additional generation capacity from:
i. Coal additions in Bataan and Zambales
ii. Expansion of Pagbilao, Quezon

VISAYAS GRID
 Panay with excess supply but only one cable to Negros

 Developments
i. Cebu-Negros-Panay 230 kV backbone
ii. Cebu-Bohol Link:
• Bohol has high demand but no large-scale electric
power generation plants
• Cebu has high generation capacity

MINDANAO GRID
 Necessary to connect the Visayas Grid to export

excess electric power supply in near future
 Leyte-Surigao interconnection not feasible
 Negros-Cebu-Zamboanga interconnection

Other Issues
 Shallow connection charging policy - Generator

pays only for equipment to connect to the grid,
not for reinforcement of the grid
 Difference in incentives between NGCP and
generators - Generators choose sites that
minimize production costs, disregarding distance
to the grid
 Timing and coordination issues

Sustainable Energy

Sustainable Energy

Expanding the Role of Sustainable Energy
Mechanisms to Promote Sustainable Energy

 Renewable Energy Portfolio Standards (RPS)
 Feed-in-Tariff (FiT)
 Distribution Network Regulations
i. Priority Dispatch
ii. Open Access
iii. Wheeling Charges
 Obligate the implementation of Demand Side Management (DSM)
i. Load Management (Load Shifting, Peak Shaving, Others)
ii. Distributed Generation (Standby Generation, Cogeneration,
Net Metering, Others)
iii. Fuel Switching/Substitution

Policy Thrusts and Reform Agenda

Policy Thrusts and Reform Agenda
Ensure energy security, lessen dependence on imported

energy with emphasis on renewable and green resources
Global climate change and environmental concerns
Increase access of the greater majority to reliable and

optimally priced basic energy services
Need to employ creative and alternative solutions

facing the judicious utilization of energy resources
Ensure good governance through stakeholder participation,

transparency, accountability, and multi-sectoral partnerships.
Energy Legislation
Major Energy Legislation and Associated Laws
Electric Power Industry Reform Act (Republic Act No. 9136)
Renewable Energy Act (Republic Act No. 9513)
Climate Change Act (Republic Act No. 9729)
Biofuels Act (Republic Act No. 9367)

Electric Power Industry Reform Act
(Republic Act No. 9136)
 The more significant provisions in relation to RE

development and decentralized energy systems include
the following:
 (i) Promotion and utilization of indigenous and RE
resources for the generation of electric power to
enhance energy security in the country as part of the
policy declaration and objectives of the GOP;
 (ii) Promotion and acceleration of initiatives towards
total national electrification;
 (iii) Open access, retail competition, and the
establishment of the Wholesale Energy Spot Market;

Electric Power Industry Reform Act
(Republic Act No. 9136)
 (iv) establishment of alternative electric service delivery

mechanisms for isolated and unviable communities
located within the franchise areas of distribution utilities
or electric cooperatives – prioritizing the utilization of RE
resources and technologies where applicable, including
regulations for small island and isolated grids, remote
rural communities under Expanded Rural Electrification
Program administered by the Philippine DOE and
National Electrification Administration, and the entry of
Qualified Third Parties.

Renewable Energy Policy Framework
Energy Security – Accelerating RE Development

Installed Capacity,
2008 2009 2010 2011 2012 2013 2014 2015
MW
Oil‐Based Power 3,353 3,193 3,193 2,994 3,074 3,353 3,476 3,608
Hydropower 3,291 3,291 3,400 3,491 3,521 3,521 3,543 3,556
Geothermal 1,958 1,953 1,966 1,783 1,848 1,868 1,918 1,918
Coal 4,213 4,277 4,867 4,917 5,568 5,568 5,708 5,843
Renewable Energy 34 64 73 117 153 153 437 666
Natural Gas 2,831 2,831 2,861 2,861 2,861 2,862 2,862 2,862
Total 15,680 15,609 16,360 16,163 17,025 17,325 17,944 18,453
Share of RE 5,283.00 5,308.00 5,439.00 5,391.00 5,522.00 5,542.00 5,898.00 6,140.00
33.69% 34.01% 33.25% 33.35% 32.43% 31.99% 32.87% 33.27%

Renewable Energy Act – Targets and Objectives

Installed Additional Capacity Total
Resource Capacity Additional
(2010) 2015 2020 2025 2030 Capacity
Geothermal 1,966.0 220.0 1,100.0 95.0 80.0 1,495.0
Hydro 3,400.0 341.3 3,161.0 1,891.8 5,394.1
Biomass 39.0 276.7 276.7
Wind 33.0 1,048.0 855.0 442.0 2,345.0
Solar 1.0 269.0 5.0 5.0 5.0 284.0
Ocean 35.5 35.0 70.5
Total 5,438.0 MW 2,155.0 MW 5,156.5 MW 2,468.8 MW 85.0 MW 9,865.3 MW

RE Project Electricity
Mechanisms End-Users
Developers Generators/Suppliers
Renewable Portfolio Standards Yes Yes
Feed-in-Tariff (Technology) Yes Yes
Renewable Energy Market Yes Yes
Green Energy Option Yes
Net-Metering Yes
Yes (Micro-Scale Yes (Micro-Scale
Exception from Government
Non-Commercial Non-Commercial
Share
Projects: ≤ 100kW) Projects: ≤ 100kW)
Exception from Universal Charge Yes
Tax Rebate for RE Components Yes Yes
Financial Assistance Program Yes
Incentives for Host Communities Yes
Priority Grid Dispatch Yes YesAssociation of the Philippines

Renewable Energy 38
Technology Differentiated Feed-in-Tariff Rates
Feed-in-Tariff Installation Targets,

Technology Digression Rate
Rate, PHP per kWh MW
Hydropower 0.5% after year 2
5.90 250
(Run-of-River) from FIT effectivity
0.5% after year 2

Biomass 6.63 250
from FIT effectivity
0.5% after year 2

Wind 8.53 200
0.5% after year 2

Solar 9.68/8.69 50/500

Local RE Suppliers /
Fiscal Incentives RE Project Developers
Equipment Manufacturers
Income Tax Holiday (7 Years) Yes Yes
Duty-Free Importation Yes (Machinery/Equipment) Yes (Components/Parts)
VAT-Free Importation Yes (Components/Parts)
Special Realty Tax Rate (1.5%) Yes
Corporate Tax Rate After Income Tax
Yes
Holiday (10%)
Accelerated Depreciation Yes Yes
Zero VAT Rating for RE Sales and Purchases Yes Yes
Cash Incentive (50% of the Universal Charge
Yes
for Missionary Electrification)
Tax Exemption on Carbon Emission
Yes
Reduction Credits
Yes (Domestic Capital Yes (Domestic Capital
Tax Credits
Equipment and Services) Components and Parts)
Net Operating Loss Carryover Renewable
Yes Energy Association of the Philippines 40
Off-Grid RE Project Development

On-Grid RE Project Development

Changing Consumer Behavior through
the Use of Energy Efficiency
Resulting from
Lower Economic
Consumption Investments
of Energy
(in energy generation,
(energy input per delivery and end-use
unit of product equipment, facilities,
produced) buildings, and
infrastructure )

Abatement Potential of Energy Efficiency Technologies
Source: ReEx Capital Asia,2010; IEA, 2009

Initiatives to Promote Energy Efficiency

 Energy Labeling of Appliances and High-Energy Devices
 Energy and Lighting Initiative
 ASEAN Energy Managers Accreditation
 Philippine Energy Efficiency Program
 Draft Energy Efficiency and Conservation Legislation (prepared
by the Committee on Energy in substitution of House Bills No.
185, 262, 392,862, 1182, 1908, 2861, 3408, 3645, 3882, 4302,
4393 and 5053 and House Resolutions No. 24 and 1334)

Draft Energy Efficiency and Conservation Legislation

 Energy Performance Standards (MEPS and Performance Testing)
i. Buildings and Structures
ii. Designation of Buildings and Structures (Based on Energy
Consumption)
 Energy Labeling of Products
i. High-Energy Devices and Equipment
ii. Motor Vehicles (Fuel Economy)
 Accreditation of Certified Energy Managers
 Accreditation of Energy Service Companies (ESCOs)
 Incentives for energy efficient technologies

Key Issues: Energy Efficiency
 Inadequate Information and Asymmetry

i. Inadequate data
ii. Inadequate skills and capacity to develop, implement,
and evaluate energy efficiency projects.

Key Issues: Energy Efficiency
 Split Incentives The person who makes a decision that

affects energy use is not the person who pays the
resulting energy costs. For example:
i. Landlord vs. Tenants
ii. Building Developers vs. Buyers.
iii. Internal Organization and Institutional Capacity
iv. Free Energy

Analysis and Critique of the Current Philippine RE Framework

Assessment of the Current Philippine RE Framework
Partiality of Existing Legislative Frameworks towards

Development of Large-Scale RE Generation Facilities
Partiality towards prioritizing the development of private large-scale
conventional and/or RE based electricity generation capacity,
energy production facilities, and grid intensification.
Benefits a wider quantity of people and geographic areas
Decrease in the cost of production and associated tariffs due to
economies of scale
Increases the reliability, security and availability of electricity services
The push towards privatization tends to be driven by the potential for
investments that generate commensurate revenues

Partiality of Existing Legislative Frameworks towards

Development of Large-Scale RE Generation Facilities
Prevailing policy and regulatory environment inadvertently
reduces available opportunities and market potential for small RE
systems, particularly for community initiated and managed energy
projects. In terms of incentives:
Trading of RE Certificates in the RE Market in compliance to RPS
Incentives for RE developers undertaking missionary electrification
Such incentives may only be availed by RE developers approved by
the Energy Regulatory Commission as Qualified Third Parties or New
Power Producers

In terms of policy direction for electrification…

The EPIRA and RE Law provides for the establishment of
alternative electric service delivery mechanisms, aside from
the conventional extension of distribution network to achieve
the target of total national electrification, prioritizing the wider
utilization of RE resources and technologies (Missionary
Electrification – Unviable Rural Electrification Program Areas
and Small Island and Isolated Grid Areas).

In actual practice…
Moving Forward while Marching in Place
The Government remains focused on the development of

infrastructure to address basic energy needs without
adequately ensuring financial, technical, and institutional
sustainability and ensuring socio-economic compatibility
to sustainable development strategies.

Some Specific Lessons in Implementation of Electrification

 Importance of continuous capacity building in operations,
financial, and technical management, environmental protection
and development, and energy efficiency / energy management
 Minimum household income levels and complementary /
support facilities may be required in order to allow the more
marginalized rural households to afford and fully maximize the
benefits of access to electricity infrastructure and services
 Change in Metric, where the value of rural and off-grid
electrification measured based on the productive applications
and other basic services enabled by the provision of electricity
services

Issues for Consideration

Issues for Consideration: Falling Prices of Global Petroleum
 Makes alternative fuels and technology development

uneconomical
 Makes the use of RE less attractive and competitive
 Dampens energy efficiency and conservation efforts

Issues for Consideration: Energy Consumer Subsidies
 Market and price distortions may arise from the provision of grants or
subsidies augmenting project funding which may allow the setting of
prices for equipment or services well below actual costs or even
provided as a dole-out.
 Designed to guarantee affordability and insulate households from the
price volatility of petroleum based energy products in global markets
 Artificially reduces local retail prices of energy, increasing energy
consumption, decreasing the potential market for energy efficiency
and conservation initiatives
 Distorts the energy supply and demand targets in energy
development planning

Issues for Consideration: Externalities + Environmental Taxes
 Energy price typically includes the costs of producing the

energy, but not the costs of adverse impacts on the
environment, including GHG emissions and local pollution.
 Propose: Instead of incentivizing RE technologies, place a
“carbon tax” or a “value-added tax” on conventional energy
technologies

Issues for Consideration: First Come, First Serve Approach to FIT
 Unfriendly to smaller RE project developers who cannot

access commercial financing to construct up to 80%
electro-mechanical completion – Curtails competition and
heightens the risk of market power
Additional Issue for Consideration: What happens after FIT?

Renewable Energy Association of the Philippines
Thank you very much for listening and I look
forward to talking with you further throughout
the workshop.
Erwin C. Serafica
Program Manager
Phone: +632 882.0542
Mobile: +63929 334.8823
erwinserafica@gmail.com
Community Based and Decentralized
Renewable Energy Systems

Why Develop Community Based and
Decentralized RE Systems…
Assumption
Provision of electricity infrastructure or services will
coincidentally enhance the income of rural
households and small-to-medium scale enterprises
by virtue of an increase in the level of productivity.
Financial, technical, and social sustainability

typically overlooked in most donor-driven energy
service provision programs and projects

Community Based RE Systems

 The Community Based RE Systems (CBRES) Approach
presents a variation on the concept of Community Driven
Development (CDD) as applied to decentralized RE
resource and technology development and the provision
of basic electricity infrastructure and services to rural and
off-grid areas.
 CBRES provides a strategy that transfers resources and
delegates the control of decisions regarding resource
utilization and the planning, design, and implementation
of potential projects directly to community groups, as
partners in the development process.
Community Based RE Systems - Benefits

 Improves efficiency and effectiveness in the provision of
infrastructure and services
 Complements market and public sector activities
 Renders the development process more inclusive of the
interests of the poor and marginalized groups
 Empowers the poor, builds social capital, and strengthens
governance
 Allows project or program initiatives to be taken to scale

Market Opportunities and Conditions in
Developing Community Based and
Decentralized RE Systems
Distributed Generation
 Rural and Small Island Communities
(Micro-Grids and Hybrid Systems)
 Net Metering
Off-Grid Electrification
 Rural and Small Island
Households/Communities
(Stand-Alone and Hybrid Systems)

Distributed Generation
 Utility structure with strategically sited small scale generation,
storage, and targeted energy efficiency programs
 Augments existing electric power production and delivery
 Allows electric power distribution utilities to defer investments
in upgrading and extending transmission / distribution
facilities in parallel with capacity expansion and the provision
of access to consumers
 Provides a mechanism for the utilization of hybrid systems

Distributed Generation – Advantages and Benefits

 Greater consumer incentives to self-generate
 Industrial and Commercial Consumers – Net Metering
 Residential Consumers (Self-Generation) – Net Metering
 Increased quality and reliability of service

 Shift towards small scale cost-effective and efficient use of
resources and technologies
 Rapid deployment where and when needed
 Lessens the “pre-electrification” bias of RE technologies
due to small installed capacity of stand-alone systems
Snapshot: Residential Market Segmentation (Affordability)
Can afford high-cost

20% solutions without assistance
High Income
Could afford reasonably

30%
priced solutions with good
Middle Income markets and financing
50% Dependent on traditional

options and heavily
Low Income assisted new options

Off-Grid Electrification
 High correlation between the provision of
energy access and socio-economic
development – prioritization of
accelerated rural electrification initiatives
 Focused primarily on infrastructure
development and the provision of
services to address basic energy needs

Off-Grid Electrification – Issues and Trends

 Shift towards the provision of energy services for remote rural
households with a target electrification level of 90% by 2017
 Alternative electric service delivery and financing mechanisms to
ensure sustainability
 Consumers typically follow seasonal changes in electricity
consumption patterns due to a variability in income cycles
(Energy Ladder Hypothesis)
 Market may be primarily characterized as a predominantly
residential and small commercial with low levels of electricity
consumption and highly dispersed load densities

Snapshot: Off-Grid Electrification Market Segmentation (Proximity)

 Off-grid consumers located in isolated or economically unviable
areas (missionary areas), due to the distance of the locale from the
main transmission/distribution grid or due to technical and/or
geographic difficulties confronting conventional grid extension and do
not have the capacity to pay for electricity services;
 Off-grid consumers located in missionary areas with the capacity to
self-generate through the use of conventional or RE technologies;
 Consumers located within the proximity of the main
transmission/distribution grid and may or may not have the
capacity to pay for electricity services (seasonal variance);
 Consumers that do not have the capacity to pay for any type of
electricity service.

Snapshot: Off-Grid Electrification Market Segmentation (Affordability)
Can afford high-cost solutions

without assistance
Consumers who can afford solutions and

systems with micro-credit financing
Consumers who can afford solutions

and systems with long-term financing
and other fee-for-service agreements
Consumers dependent on
concessional and highly
subsidized financing mechanisms

Assessment of the Current Philippine RE
Framework within a CBRES Perspective
Some Lessons Learned in CBRES Project Implementation

Importance of forging partnerships between the community,
government institutions, and the private sector in the development
of sustainable RE based rural electrification strategies to support
the establishment of productive livelihood and social applications
for the community
 Adaptation and Responsiveness of Community Organizing
Approaches RE based electrification projects utilizing a
single homogenous approach towards community
development tasks and activities must be able to adapt its
approach to match the local conditions within each
community based on culture, needs, and aspirations

 Community Counterpart Contributions With the subsidies,
grants, and financial support provided by the Government
and donor-driven development projects, most community
beneficiaries took on a mentality of dependency where a
project or program was expected to provide everything from
planning to the implementation and operational framework.
This significantly lessened the responsibility, accountability,
and sense of ownership of the community with respect to
the objectives of the project and that of the infrastructure
and equipment deployed.


 Building Multi-Sectoral Alliances Donor organizations have
recognized that sustainable rural electrification projects
require the application of multidisciplinary approaches,
necessitating the forging of partnerships with as many
public and private sector organizations as possible in order
to ensure the project completion and provide access to
much needed technical, financial, and marketing assistance
for the development of related productive livelihood and
social applications.

Some specific Lessons…

 Importance of continuous capacity building in operations,
financial, and technical management, environmental protection
and development, and energy efficiency / energy management
 Minimum household income levels and complementary /
support facilities may be required in order to allow the more
marginalized rural households to afford and fully maximize the
benefits of access to electricity infrastructure and services
 Change in Metric Value of rural and off-grid electrification
measured based on the productive applications and other basic
services enabled by the provision of electricity services

Sustainable Energy Eco-Systems

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Sustainable Energy Systems

Continuous Population Growth and Urbanization

Rapid economic growth should lead to increased per capita

Energy Poverty: Low per capita consumption of

Ratio of Electric Power Consumption Spending to Per

Renewable Energy Association of the Philippines 3

Continued dependence on fossil fuels and

Climate mitigation/adaptation imperative

Improving access to basic energy services

Archipelagic nature of the country

Renewable Energy Association of the Philippines 4

Continued dependence on fossil fuels and

Climate mitigation/adaptation imperative

Improving access to basic energy services

Archipelagic nature of the country

Renewable Energy Association of the Philippines 5

Composition of Primary Energy Requirements – Regional

Primary Energy Supply Requirements - Philippines

Renewable Energy Association of the Philippines 7

Projected Energy Self-Sufficiency Levels (2035)

0 0.2 0.4 0.6 0.8 1

Renewable Energy Association of the Philippines 8

Contribution of conventional fuels (Oil and Coal) in

Imported Oil = 119,695 MB (65.7%)

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Electric Power Generation - Installed Capacity

Renewable Energy Association of the Philippines 10

Risks: Continued Dependence on Imported Energy

Availability of supply threatened by global political and

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Increasing Cost of Electric Power due to Price Volatility

The Philippines has one of the highest electricity rates in

Renewable Energy Association of the Philippines 12

Average Cost of Electricity – Philippines (US¢21.10 per kWh

Renewable Energy Association of the Philippines 13

Continued dependence on fossil fuels and

Climate mitigation/adaptation imperative

Improving access to basic energy services

Archipelagic nature of the country

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The emission of Greenhouse

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46.0% of the total energy-related CO2

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National GHG Emissions Inventory

Estimated CO2 Emissions Year of GHG Percentage of Total

50.0 1994 DENR 49

53.5 1998 Manila Observatory 51

69.7 2000 DENR 55

69.1 2009 DOE

Renewable Energy Association of the Philippines 17

Continued dependence on fossil fuels and

Climate mitigation/adaptation imperative

Improving access to basic energy services

Archipelagic nature of the country

Renewable Energy Association of the Philippines 18

Developing Asia 628 18 1814 51

Source: ADB, 2013; IEA, 2012

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Renewable Energy Association of the Philippines 20

Electrification and Access to Basic Energy Services

Renewable Energy Association of the Philippines 21

Continued dependence on fossil fuels and