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NET METERING
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text styles S. Sibayan
• Second
Solarleveland Wind Energy Management Division
• Third level
• Renewable
Fourth level Energy Management Bureau
• Fifth level
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LEGAL FRAMEWORK
RA 9513: Renewable Energy Act of 2008
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• Second level
• Third level
• Fourth level
• Fifth level
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LEGAL BASIS
Section 7 of RA No. 9513 Implementing Rules & Regulations (IRR)
defines:
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• Second level
Net Metering is a consumer-based RE incentive scheme (net-
• Third level
user only)
• Fourth level
• Fifth level
Purpose : to encourage end-users to participate in RE
generation for own use
Mandate : Upon request by distribution end-users, the DUs
shall, without discrimination, enter into a net-metering
agreements with qualified end-users who will be installing RE
system, subject to technical and economic considerations
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LEGAL BASIS
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Section 10Master of text styles9513 and Section 7 of its
R.A.
• Second level
Implementing
• Third level Rules & Regulations (IRR) provides that
• Fourth level
the Energy •Regulatory
Fifth level Commission (ERC), in consultation
with National Renewable Energy Board (NREB), shall
establish the net-metering interconnection standards
and pricing methodology.
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LEGAL BASIS
ERC Resolution No. 9, Series of 2013 - A Resolution Adopting the Rules
• ClickEnabling
to edit Master text stylesProgram for Renewable Energy
the Net-Metering
• Second level
Components:
• Third level
•Rules
FourthEnabling
levelthe Net-Metering Program (Annex A)
• Fifth level
Net-Metering Interconnection Standards (Annex A-1)
Net-Metering Agreement Template (Annex A-2)
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DISTRIBUTED GENERATION
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• • Refers
Second level to a system of small generation
• Third level
entities supplying directly to the distribution
• Fourth level
• Fifth level
grid, any one of which shall not exceed one
hundred kilowatts (100 kW) in capacity, as
defined in Section 4(j) of R. A. No. 9513.
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INTERCONNECTION SET-UP
Two-way connection
Two uni-directional meters
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• Second level
• Third level
• Fourth level
• Fifth level
Import
Export
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NET METERING SETUP
Two-way connection
Bi-directional meter
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• Second level
• Third level
• Fourth level Import
• Fifth level
Export
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Scope, Applicability, & Qualification
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Applicable to on-grid RE systems
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End-user
• Second level should be in good credit standing in the
• Third level
payment • Fourthoflevelelectric bills to the distribution utility (DU).
• Fifth level
RE systems such as wind, solar, biomass or biogas
energy systems or such other RE systems capable of
being installed within the qualified end-user’s premises
are eligible to participate in the net metering program.
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Scope, Applicability, & Qualification
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Theto editRE Master System must be compliant with the
text styles
• Second level
standards
• Third level
set in the Philippine Electrical Code (PEC),
Philippine
• Fourth levelDistribution
• Fifth level
Code (PDC), Distribution
Services and Open Access Rules (DSOAR) and the
Net-Metering Interconnection Standards (NMIS).
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Pricing Methodology
Interim (temporary/provisional) pricing for export
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• energy
Second levelis the DU’s monthly charge based on its
blended
• Third level generation cost.
• Fourth level
• Fifth level
This cost shall be automatically included in the
DU’s total generation cost to be recovered from all
its customers as part of the adjusted generation
rate pursuant to Section 2 of ERC Resolution
No. 19, Series of 2009
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Pricing Methodology
Export rate
Generation Transmission
P9.4291/kWH
Import rate
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Net Metering Charge
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Netto editmetering charge is equivalent to
Master text styles
•PhP/customer/month
Second level supply and metering rates;
• Third level
plus • the ERC-approved PhP/kWh metering rate
Fourth level
• Fifth level
based on export energy.
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Billing Charge
Billing Charge:
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PhP for import energy
• Second level
Less: •PhP export energy
Third level
• Fourth level
PhP credited
• Fifth level in previous month
Net/Difference in Php (+ or -)
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HOW TO OPTIMIZE A NET METERING CONNECTION?
• It shall displace relatively high consumer rate (import cost) of the DUs , that is:
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• Annual gross benefit of the project is equivalent to the annual savings generated. It is
• Second
computed level
by multiplying the annual total generation with the import cost
• Third level
• Fourth level
• Type of usage : •Net user on a monthly basis
Fifth level
- Capacity (kWp) can supply the minimum daytime consumption even during low
irradiation months (July to January);
- generation during the high irradiation months is less than the maximum daily energy
requirement
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SAMPLE CALCULATION
• Site is Manila (NAIA) • Economic life : 20 years
• The system is to be used 12/7 annually; • 100% loan at annual interest rate of 10%
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• Daily to edit
minimum Master(daytime)
electricity text styles payable in 5 years
need :• 10 kWH/day
Second level • Annual amortization : P55,397.47
• Minimum•Irradiation
Third level : 4.5 kWH/m
2
• Displaced cost (MERALCO consumer price
• Global Irradiation : 1 kWH/m
• Fourth level 2
of electricity) : P11.00/kWH
• Optimum capacity• (kWp) : 3 kWp
Fifth level • Projected annual savings : P46,253.00
• Annual generation at 16% capacity • NPV : P647,896.00
factor : 8,410 kWH • Project IRR : 14%
• Installed Cost/kWp : P70,000.00/kWp x • Breakeven Year : 7th year
3 = P210,000.00 • The levelized cost of electricity (LCOE) :
P1.41/kWH
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SAMPLE CALCULATION
• Site is Manila (NAIA) • Economic life : 20 years
• The system is to be used 12/7 annually • 100% loan at annual interest rate of 10%
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• Daily to edit
minimum Master
electricity text styles
(daytime) need : payable in 1.5 years
• Second level
1 kWH/day • Annual amortization : P23,645.84
• Third level: 4 kWH/m2
• Minimum Irradiation • Displaced cost (MERALCO consumer price
• Fourth level of electricity) : P11.00/kWH
• Global Irradiation : 1 kWH/m2
• Fifth level
• Optimum capacity (kWp) : 350 Wp • Projected annual savings : P5,396.16
• Annual generation at 16% capacity factor : • NPV : P41,034.00
490.56 kWH • Project IRR : 11%
• Installed Cost/kWp : P100,000.00/kWp x .35 • Breakeven Year : 8th year
= P35,000.00 • The levelized cost of electricity (LCOE) for
20 years : P0.94/kWH
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Net Metering
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• Second level
Interconnection Standards
• Third level
• Fourth level
• Fifth level
Annex A-1
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Interconnection Standards
General Guidelines
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• Second level Application for Interconnection
• Third level
level
• Fourth System Parameters
• Fifth level
System Protection
Operations & Maintenance
Metering
Testing and Commissioning
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General Guidelines
Design, installation, operations and maintenance shall be in consultation
•with
Clickthe
to DU,
editsince
Master all text styles
specifications shall be of DU’s standards.
• Second level
System requirements shall be met at the Connection Point.
• Third level
The DU shall only
• Fourth levelallow interconnection of RE facilities with up to 100kW
capacity per •QE Fifth level
account.
The DU shall conduct inspections and shall remove the generation from
DU system at any time due to maintenance, test, repair and emergency
conditions.
QE to be liable for any damages of the DU should the QE execute changes
to the RE facilities without first informing the DUs.
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Application for Interconnection
QE to
QE to complete and
send DU to
file an application.
a•letter
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provide information
• Second
requesting DU level
for to QE.
• Third level
interconnection.
• Fourth level
• Fifth level
Ifyes:
Pro forma agreements
DU to determine DU to acknowledge
DU Application form
shall whether DIS and/or within ten (10)
provide• DescriptionDAS of proposed
is connection business days from
results of study.• Relevant Standard Planning Data
necessary. receipt.
• Other data required by DU
• Completion date
DU, with Technical requirements
Specifications QE and DU
QE to
to enter
Listing of certified equipment
conduct
Application fee into a Net-Metering
information
on-site
Applicable rate schedulesAgreement.
inspection.
Department of Energy Metering requirements
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System Parameters
Voltage Level - should be the same level as the DU with automatic method
of disconnecting.
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Frequency – 60 Hz with automatic method of disconnecting.
• Second level
Power• Quality
Third level
Limitation
• Fourthoflevel
direct current (DC) injection – not to inject direct current
• Fifth level
greater than 0.5% of the full load rated output current at connection
point.
Flicker severity – not to exceed 1.0 unit for short term (ST) and 0.8 units
for long term (LT).
Harmonics – within limits in Sec. 3.2.4 of Philippine Distribution Code
(PDC)
Power Factor – not less than 85% lagging measured at the Connection Point.
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System Protection
Synchronization – QE to provide synchronizing devices with typical limits in
the Net Metering Standards.
•Islanding
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– QEMaster
systemtext styles
should detect islanding and disconnect within 2
• Second level
seconds from formation.
• Third level
Integration withlevel
• Fourth DU’s Distribution System Grounding – shall be grounded in
accordance to • Fifth
Philippine
level Electrical Code (PEC).
Protective Control Devices
Disconnect device – visible for use by the DU within 10 feet from
connection point.
Protective relays – protective relays provided in Net Metering (NM)
Standards
Reclosing – immediate disconnection from the DU system when the
system is down.
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Operations & Maintenance
Facility should operate in parallel with the DU.
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QE• Second
mustlevel inform the DU if it is going to synchronize.
• Third level
If the• Fourth DUlevel system is down, the facility should
• Fifth level
automatically disconnect.
QE to provide DU with contact numbers.
QE shall maintain the facility in a safe manner as
approved by the DU.
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Metering
MSP shall own and shall be responsible for the
•operations
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maintenance of the meter in
• Second level
accordance
• Third level with Sec. 2.11 of Distribution Services and
• Fourth level
Open Access Rules (DSOAR).
• Fifth level
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Testing & Commissioning
Commissioning test shall be Commissioning Test shall
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conducted Master
after thetext styles include the following:
• Second level system is
interconnection Verification and
• Third level
installed. • Fourth level inspections
• Fifth level
DU has the right to witness the Production Test
testing and commissioning. Response to
abnormal voltage
RE facility shall be equipped with
Response to
whatever equipment is required
abnormal frequency
to perform the test.
Synchronization
Unintentional islanding
functionality test
Cease-to-energize
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28
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Annex A-2
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Net Metering Agreement
Parties: DU and Qualified End-user (QE)
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Mirrors
• Second the
levelprovision in the Rules Enabling the Net-Metering
Program (i.e.
• Third levelCompliance Standards, Interconnection Set-Up, DU
• Fourth level
Inspection, •MeterFifth level Readings, Pricing and Other Charges).
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GOVERNMENT INITIATIVE
DOE Project: Net Metering Demonstration in Private Academic Institutions
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Objective edit Masterdaytime textload
styles
Target Area
• Second: Metro
level Manila
Consumer•Electricity
Third level Rate : PhP 11.50
• Fourth level
Financing Scheme : PV Suppliers at no initial cost to the school
• Fifth level
Payment Scheme : PhP 9.500/kWh for 14 years
Status :
• Three (3) schools
1. La Consolacion College : 133 kWp
2. MLQU : 96 kWp
3. St. Scholastica College : 96 kWp
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WHERE ARE WE NOW?
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ERCto edit - Master
engaged a consultant to conduct a
text styles
• Second level
net-metering study (on pricing methodology) on July
• Third level
2016 • Fourth level
• Fifth level
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WHERE ARE WE NOW?
The following were the current issues covered in the
• Click
proposed Amendments:
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• Second level
• Third level
1. Whether
• Fourth levelor not the lifeline rate should apply to Qualified
End-users.
• Fifth level
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Thank You!
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#KuryenteMo #eGenerateMo
(+632) 479-2900
fortunato.sibayan@doe.gov.ph
www.doe.gov.ph
//doe.gov.ph
@doe_ph
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