1 / 31

Promotion of Demand-Side Management and Renewable Energy under a Competitive Electricity Market: The Philippines Case M

Promotion of Demand-Side Management and Renewable Energy under a Competitive Electricity Market: The Philippines Case Ms. Irma C. Exconde Presented to the 6 th Asian Development Research Forum General Meeting June 7- 8, 2004, Siam City Hotel Bangkok, Thailand. Outline of Presentation.

hua
Download Presentation

Promotion of Demand-Side Management and Renewable Energy under a Competitive Electricity Market: The Philippines Case M

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Promotion of Demand-Side Management and Renewable Energy under a Competitive Electricity Market: The Philippines Case Ms. Irma C. Exconde Presented to the 6th Asian Development Research Forum General Meeting June 7- 8, 2004, Siam City Hotel Bangkok, Thailand Philippines

  2. Outline of Presentation • Overview of Energy Supply and Demand • and National Energy Policies • Energy Conservation Policies • Renewable Energy Promotion Policies Philippines

  3. ENERGY SUPPLY ANDDEMANDandNATIONAL ENERGY POLICIES Philippines

  4. EnergySupply and Demand Primary Energy, 2002 vs 2001 1/ MMBFOE - Million Barrels of Fuel Oil Equivalent Philippines

  5. EnergySupply and Demand Situationer Energy Consumption by Sector, 2002 vs 2001 1/ MMBFOE - Million Barrels of Fuel Oil Equivalent Philippines

  6. POWER SECTOR SITUATIONER Generation / Transmission / Distribution, 2003 Luzon Visayas • Interconnection • Leyte-Luzon (440 MW) • Leyte-Cebu (200 MW) • Cebu-Negros (100 MW) • Negros – Panay (100 MW) • Leyte-Bohol (35 MW) Mindanao Philippines

  7. EnergySupply and Demand Outlook Energy Demand by Sector, 2004-2013 MMBFOE - Million Barrels of Fuel Oil Equivalent Philippines

  8. SUPPLY DEMAND PROFILE Luzon, 2004 – 2013 16100 Hydro - 350 MW MW Wind Power – 65 MW Additional Capacity Needed 12100 8100 Plant Retirements: Oil-based – 210 MW (2009) Oil-based – 650 MW (2010) 4100 100 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 0 0 0 0 0 0 150 600 1350 900 750 1050 Indicative .Capacity 0 0 350 0 65 0 0 0 0 0 0 0 Committed 10435 10520 10520 10520 10520 10520 10520 10310 9660 9660 9660 9660 Existing 6,039 6,454 6,937 7,473 8,076 8,662 9,323 10,036 10,786 11,575 12,406 13,280 Peak Philippines

  9. SUPPLY DEMAND PROFILE Cebu, 2004 – 2013 1000 MW Inteconnection Uprating 800 Additional Capacity Needed 600 400 200 Plant Retirements: Oil-Based Plant – 98.8 MW (2011) 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 0 0 0 0 0 0 100 100 50 150 50 50 Indicative Capacity 180 180 180 360 348 325 299 271 241 209 175 139 Leyte-Cebu Int. 361 361 361 361 361 361 361 361 361 281 281 281 Existing 407 435 467 502 541 579 621 666 713 762 813 866 Peak Philippines

  10. SUPPLY DEMAND PROFILE Negros, 2004 – 2013 Interconnection Uprating 500 MW Geothermal 60MW Biomass Cogen 80 MW Additional Capacity Needed 400 300 200 100 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 0 0 0 0 0 0 0 0 0 0 50 50 Indicative Capacity 0 0 0 140 0 0 0 0 0 0 0 0 Committed 90 90 74 90 168 107 139 166 139 128 93 53 Cebu-Negros Int. 180 180 180 180 180 180 180 180 180 180 180 180 Existing 197 207 219 232 246 259 273 287 302 317 332 347 Peak Philippines

  11. SUPPLY DEMAND PROFILE Panay, 2004 – 2013 600 Interconnection Uprating MW 500 Oil-based - 150 MW Additional Capacity Needed 400 300 200 Plant Retirements: Oil-based – 75 MW (2007, 2009) 100 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 0 0 0 0 0 0 0 50 100 150 200 250 Req'd. Cap. Add. 0 0 150 150 150 150 150 150 150 150 150 150 Committed 73 62 34 90 180 138 156 169 127 101 101 96 Negros-Panay Int. 141 141 141 141 141 116 116 66 66 66 66 66 Existing 183 195 210 225 243 260 279 299 320 342 365 389 Peak Philippines

  12. SUPPLY DEMAND PROFILE Mindanao, 2004 – 2013 2500 MW Coal - 200 MW 2000 Additional Capacity Needed 1500 1000 500 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 0 0 100 0 0 0 200 0 150 0 100 Indicative Capacity 0 0 200 0 0 0 0 0 0 0 Committed 0 0 1422 1422 1422 1422 1422 1422 1422 1422 1422 1422 1422 1422 Existing 995 1,04 9 1,112 1,181 1,259 1,331 1,412 1,498 1,586 1,676 1,769 1,864 Peak Philippines

  13. EnergySupply and Demand Outlook Projected Energy Supply, 2004-2013 MMBFOE - Million Barrels of Fuel Oil Equivalent Philippines

  14. National Energy Policy Framework • Promote economic growth, alleviate poverty and foster market-based industry through the following objectives: • Ensure sufficient, stable, secure, accessible and • reasonable prices energy supply • Pursue cleaner and efficient energy utilization and clean • energy technology applications • Cultivate strong partnerships and collaboration with key • partners and stakeholders through establishments of • arrangements to enhance sustain private sector support, • participation and cooperation in energy projects Philippines

  15. National Energy Policy Framework • Promote economic growth, alleviate poverty and foster market-based industry through the following objectives: • Empower and balance the various interests of the • energy public by conducting consumer welfare and • protection awareness and advocacy programs and • establishment and operationalization of appropriate • consumer feedback and monitoring mechanisms Philippines

  16. Electric Power Industry Reform What has been Done • Unbundled the generation, transmission, distribution and • supply functions to achieve a transparent and reasonable • price of electricity • Adopted the Long-Run Avoidable Cost Pricing • Methodology to standardize the generation charges in • Luzon, Visayas and Panay/Bohol • Established a prototype Wholesale Electricity Spot Market • Created the Philippine Electricity Market Corporation Philippines

  17. WAY FORWARD • Power Development Planning is expected to evolve as we move forward in restructuring the power sector • Need for viable & sustainable power rates to encourage new investments in power generation • Power reform is geared towards promoting competitive pricing to attain the true cost of energy • WESM implementation will encourage competitive new entrants • Distribution utilities are responsible to sign up new power supply agreements directly with IPPs • The success of the electricity reform program is a concerted effort of the public and private sectors Philippines

  18. ENERGY CONSERVATION POLICIES Philippines

  19. Demand Side Management (DSM) • DSM Framework became effective December 29, 1996 with the following goals: • To increase efficiency in generation, transmission and • distribution of electricity and defer construction of • power generating plants • To offer alternatives to utilities to optimize resources • and provide flexible options to reduce operating costs • and increase cost-competitiveness • To induce customers/consumers of electricity to adopt • measures to effect changes in energy consumption and • utility load shape • DSM Framework delineated the roles of DOE, Electric Utilities and Electric Consumers to attain the above goals Philippines

  20. Energy Efficiency and DSM Programs and Projects • Information and Educational Campaign • Conducted workshops and seminars on efficient utilization • of electricity in the household, academe, commercial, • industrial and manufacturing establishments • Power Patrol Program (Power Conservation and • Demand Management 2.73 MMBFOE savings • Road Patrol Program 1.64 MMBFOE savings • Government Energy Management Program (GEMP) • 3.17 MMBFOE savings Philippines

  21. Energy Efficiency and DSM Programs and Projects • Technical Assistance • Programs include on-site surveys, energy audit, • improvement of plant operational efficiency, mandatory • reduction of systems losses, implementation of DSM • 48.76 MMBFOE savings • Heat Rate Improvement Program • 2.09 MMBFOE savings • Enactment of Anti-Pilferage of Electricity and Theft of • Electric Transmission Lines/Materials Act of 1994 • 3.39 MMBFOE savings • Other DSM Programs: High Efficiency Lighting, Motor • Efficiency, Consumer Efficiency Awareness, Power Factor • Correction 0.95 MMBFOE savings Philippines

  22. Energy Efficiency and DSM Programs and Projects • Consumer Protection • Ensure consumers are protected from unscrupulous trading • and market practices and sub-standard energy efficient • products and services • 26.26 MMBFOE savings • Program Components • Efficiency Standards and Labeling for Room Airconditioners • Energy Labeling of Refrigerators • Labeling for Compact Fluorescent Lamps • Labeling for Fluorescent Lamp Ballasts • Performance Certification of Fans and Blowers • Efficiency Standards and Labeling of for Electric Fans • Labeling for Linear Fluorescent Lamps • Labeling for Electric Motors Philippines

  23. Issues in DSM Implementation • Lack of clear-cut and more responsive regulatory policy to • incentivize the promotion of DSM programs • Recovery of lost revenues • Financing for DSM projects • Standard Retail Tariff • Inclusion of costs in the consumers’ electric bill • Pilot Project Syndrome • Excess Capacity • Subsidy • DSM Promotion Philippines

  24. Way Forward • To promote universal use of energy efficient electric • products, service and technologies • To set minimum DSM goals for large utilities and simple • DSM plan for small utilities and cost recovery • plans for utilities who opted not to submit a DSM plan • To create of a System Benefits Charge Philippines

  25. RENEWABLE ENERGY PROMOTION POLICIES Philippines

  26. Renewable Energy (RE) • RE Framework aims to facilitate the energy sector’s transition to a sustainable system with RE as an increasingly prominent, viable and competitive fuel option. • Objective: • To be the world’s geothermal energy producer • To be the leader in wind energy production in Southeast • Asia • To double hydropower installed capacity in 2012 • To expand contribution of biomass, solar and ocean • to the energy mix Philippines

  27. Renewable Energy (RE) • Institutional Arrangements • Agencies Involved: Department of Energy, National Electrification Administration, National Power Corp., Philippine National Oil Co., Energy Regulatory Commission, National Economic and Development Authority, Board of Investments, Department of Environment and Natural Resources • Programs and Projects • Rural Electrification of Unviable Areas Philippines

  28. Barriers to Promotion of RE Under a Competitive Electricity Market • Non-comprehensive development plan on NRE • RE projects not directed towards sustainability and real • market approach • Lack of clear policies and appropriate legislation on RE • applications • Lack of appropriate incentives for RE • Uneven playing field in the area of RE • Unfavorable utility regulations • Difficulty in establishing power contract • Difficulty in accessing traditional financing windows • Lack of capacity in project packaging and presentation • Lack of private sector involvement in small to medium scale • RE projects Philippines

  29. Barriers to Promotion of RE Under a Competitive Electricity Market • Lack of success stories on sustainable RE applications in the • country • Lack of technology extension to users and suppliers of RE • technologies • Ineffective RE promotion and advocacy programs Philippines

  30. Way Forward • Facilitate transformation of RE as an economically • viable industry • Enactment of the Proposed Renewable Energy Bill • Salient Features: • > On-grid Renewable Energy Development • > Off-Grid Renewable Energy Market • > Fiscal and Non-Monetary Incentives and Privileges • Maximize the role of the private sector in off-grid rural • electrification • Establish national standards for renewable equipment Philippines

  31. THANK YOU Philippines

More Related