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Finding Our Place in the Sun : Ways to Achieving the Solar Installation Target in the Philippines Tetchi cruz-capellan CEO, SunAsia Energy President,

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Presentation on theme: "Finding Our Place in the Sun : Ways to Achieving the Solar Installation Target in the Philippines Tetchi cruz-capellan CEO, SunAsia Energy President,"— Presentation transcript:

1 Finding Our Place in the Sun : Ways to Achieving the Solar Installation Target in the Philippines
Tetchi cruz-capellan CEO, SunAsia Energy President, Philippine solar power alliance Clean Energy Forum, ADB, June 17, 2015

2 Philippines Is Growing & Moving Fast..
Philippine Population 2012 : 92 million 2050 : 153 million Gross Domestic Product : 8.4 percent : 7.3 percent Energy Consumption in kg of oil equivalent per year 2003 : 1,524 kg,oe 2011 : 1,778 kg,oe Cost of Electricity US$.26/kwh

3

4 Keeping the Mix : Government Initiatives At A Glance
Renewable Energy Law Enacted by Parliament; Implementing Rules Passed; National Renewable Energy Board was created; National Renewable Energy Plan was Approved; Mw Solar Target was Put in Place; Feed-In Tariff was Passed, Php9.68/kwh; Net Metering was Approved;

5 2013 : The Sun Started to Come…
5kw, Bank of Philippine Island 38kw, Makati Medical Hospital 78kw International School 40kw,Toyota Showroom

6 2014 : Solar Rising! 40Mw, Solar Rooftop FiT Program, Cavite
22Mw, Ground-Mounted Solar FiT Program, Negros Occidental

7 The Present Landscape Increased Installation, 500Mw
Pending Application as of Mar 2015 Approved Service Contracts *as of Mar 2015 Approved Certificate of Commerciality** as of Mar 2015 Projects Awarded w/ Feed-In-Tariff*** Projects Under Construction 208.0 1,293.00 330.5 106.0 118.0 25% 32% 35% Service Contract – refers to an exclusive area assigned to RE Developer for exploration, development and utilization of solar resources in accordance to the provisions of the contract. Certificate of Commerciality – refers to the declaration of the RE Developer , with government confirmation, that the Solar Energy Project is commercially viable based on legal considerations, as well as insofar technical and financial studies. Feed-In Tariff – refers to the government approved rate paid to Developer if power plant is 80 percent completed by March Php8.69/kwh

8 Sunshine on My Shoulders : Challenges to Commerciality
Tedious Permitting Steps Too Many Agencies (7) and Offices (11) Involved; (Environment, Housing, Local Govt, Indigenous People, Trade and Industry, Finance, Agrarian Reform and Agriculture.) Long Conversion Process Converting Agriculture to Industry takes 9 to 12 months! Rigorous Interconnection Approval Few SIS Preparer; Slow Data Sharing; Weak Grid outside Metro Manila. High Risk to Equity Funders and Lenders Reluctance to Take Construction Risks; Reporting system on project development is opaque.

9 TOLEDO SOLAR PV PROJECT Creative Business Model
Project Characteristics Agri-Energy Project; Only 29% of the 113 hectares is used for solar panels and plant structures; Site Development preserves large grazing area; Grass variety and planting density are integrated in the infrastructure development plan; Animal population is maintained; Quality of livestock is upgraded; Height of the Mounting Structure Allows Small Animals to Roam; Lease Period Returns the Property to Original Land Use.

10 Toledo Solar PV Project Agriculture-Compatible Plant
Building Advantages & Benefits Shorter Permitting Cycle Allowing Quicker Deployment of Solar PV Power Plants; Optimized Land Use; More Investments for Agriculture; Productivity Increase & Higher Farm Income; More Local Employment Opportunities; Improved Nutrition Among Young Population; Increased Generating Capacity of Local Grid; More Displacement of Carbon Emitted by Agriculture & Fossil Based Power Plants;

11 Letting the Sunshine In… Policy Prescriptions for FiT3
A. Permitting Process More Sustainable Land Use; Parallel Review by Government Agencies; B. Financing 3. Greater Transparency for Approved Projects; 4. Shorter Reporting Period – Monthly vs Quarterly; Program Management : 5. Public & Private Sector Partnership for Near-Term Target Setting and Smooth Grid Integration to Maximize Solar Benefits to Consumers.

12 “Someone is sitting in the shade today because someone planted a tree a long time ago…”
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