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
 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
 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 utilizationSection 3,
Renewable Energy Act of 2008
 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 concernedSection 27, Renewable Energy
Act of 2008
 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 2011-2030 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
 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
NATIONAL RENEWABLE ENERGY
PROGRAM

RE-based On-Grid Capacity Installation Targets

BIOMASS PLANTS
GEOTHERMAL PLANTS
HYDRO PLANTS
WIND AND SOLAR PROJECTS
 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 1st ocean energy facility
NATIONAL RENEWABLE ENERGY
PROGRAM

FUNDAMENTAL QUESTION: WHY DOES THE

PHILIPPINES HAVE AN AGGRESSIVE RE TARGET?
 COMPARATIVE RE UTILIZATION
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Share of RE and Non-RE

NATIONAL RENEWABLE ENERGY
PROGRAM
PRIMARY ENERGY SUPPLY MIX

2009

Oil, 2.40%
Coal, 6.30%

Natural Gas, 8.10%

Hydro, 6.20%

Imported Oil, 31.70%

Indigenous Energy ,
59.41% Geothermal, 22.50%

Biomass, 13.60%
Imported
Coal,
Wind/Solar, 0.01%
8.70%
CME/Ethanol, 0.30%

Imported Ethanol,
0.10%
PRIMARY ENERGY SUPPLY MIX

2010

Oil, 2.3
Coal, 8.6

Natural Gas, 7.4

Hydro, 4.8
Imported Oil, 33.6
Indigenous Energy,
57.51 Geothermal, 21

Biomass, 13.1
Imported
Coal, 8.6 Wind/Dolar, 0.01
CME/Ethanol, 0.3
Imported Ethanol, 0.3
 POWER GENERATION MIX

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

Wind, 0.09%
Solar, 0.002% Coal, 34.4%
 CRUDE OIL IMPORTATION

2009

Saudi Arabia, 45.1

Malaysia, 8.2
Indonesia, Middle East, 84.4
0.5
Others, 7
UAE, 20.3

Qatar, 16.7
Oman, 2.1
Iraq, 0.2
 CRUDE OIL IMPORTATION

2010

Saudi Arabia, 45.3

Malaysia, 10.2
Middle East
81%
Others, 8.2
UAE, 27

Qatar, 6.4
Indonesia, 0.7 Iraq, 1.2
Oman, 1
 COMPARATIVE ENERGY DATA
Country Oil Production Gas Production Coal RE Target
Production
China (coal 70%) 3.99 mb/d (5th) 94 bcm (8th) 3,240 Mt (1st) 30% (2035)

Vietnam (coal) 300 kb/d (35th) 9.4 bcm (42nd) 44.1 Mt (17th) 5% (2020)

Thailand (natural 380 kb/d (32nd) 30.8 bcm (25th) 17.9 Mt (25th) 25% (2021)*
gas 66%) (currently 2%)
Indonesia (coal 1.09 mb/d (21st) 82.8 bcm (12th) 305.9 Mt (6th) 25% (2025)*
and oil) (currently 4%)
Malaysia (natural 693 kb/d (27th) 58.6 bcm (16th) 78 Mt 17% (2030)*
gas 60%) (currently 5%)
Taiwan (nuclear, oil 276 kb/d (37th) 310 m3 (71st) N/A 15% (2025)*
and natural gas) (currently 8%)
India (coal 53%) 878 kb/d (24th) 120 bcm (5th) 569.9 Mt (3rd) 15.9% (2022)
(currently 11%)
South Korea (oil, 48 kb/d (65th) 532 m3 (66th) 3 MMst (short 10% (2022)
coal and nuclear) tons)

PHILIPPINES 9 kb/d (85th) 3.1 bcm (52nd) 7.2 Mt (31st) 50% (2030)
(coal and gas) (currently 30%)
 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
 NATIONAL RENEWABLE ENERGY
PROGRAM
The expected milestones over the period 2011 to 2030
 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?
NATIONAL RENEWABLE ENERGY
PROGRAM
THE ROAD STARTS HERE
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