Access to Sustainable Energy in the Philippines: PV Mainstreaming Initiative

1. REPUBLIC OF THE PHILIPPINESDEPARTMENT OF ENERGYELECTRIC POWER INDUSTRY MANAGEMENT BUREAU ACCESS TO SUSTAINABLE ENERGY PHILIPPINES (ASEP) PV Mainstreaming (PVM) Component With the Cooperation of the National Electrification Administration

2. DOE Policy Framework • EPIRA 2001: Total electrification of the country • DOE Circular 2014-07-0012 “Accelerating Household Electrification in Off-grid and Isolated Areas through Electricity Supply by Regulated Solar Home Systems (SHS);” • DOE Circular No. DC2013-07-0015 “Prescribing the Implementing Rules and Regulations of R. A. 10531 otherwise known as the NEA Reform Act of 2013”. Rule VI. “In pursuit of the total electrification…NEA and ECs shall electrify all remaining unelectrified households.” • Anchored on the approved DOE’s Household Electrification Development Plan (HEDP) 2013-2017 which lays down the policies and program framework to achieve Government target; • Contributes in the achievement of the Government goal of ninety percent (90%) HH electrification by 2017. • In response to global objective of increasing access to modern and sustainable energy services as espoused under the United Nation’s Sustainable Energy for All;

3. HH Electrification Level (as of June 2016) PHILIPPINES 20.36 M HHs ------------- = 89.6% 22.72 M HHs LUZON 13.09 M HHs --------- --= 94.8% 13.80 M HHs VISAYAS 3.77 M HHs ------------ = 92.4% 4.08 M HHs MINDANAO 3.50 M HHs ------------ = 72.4% 4.84 M HHs 2.40 M Unserved Household for 2016

4. HOUSEHOLD ELECTRIFICATION DEVELOPMENT PLAN (HEDP) • Towards 90% Household Electrification by 2017 Grid Electrification Off-Grid Electrification DOE-REMB HEP DOE-EPIMB PV Mainstreaming ASEP C4 & C1 NEA SEP & BLEP DU’s Regular Connections NPC Supply and Electrification Efforts QTP Approach Mini-Grid and Other RE-Based Electrification (PRES & ER 1-94 EF) DOE-EPIMB NIHE DOE-EPIMB ER 1-94 NPC SPUG contributions • Provision additional supply in the generation in remotes areas where grid extension projects are provided • Provision of electrification projects on remote areas operated by LGUs and waived by distribution utilities. Grid Electrification shall refer to all electrification projects such as extension of lines and are connected to the distribution system of the DU Off-Grid Electrification shall refer to all electrification projects that will provide energy access to household but not connected to the distribution system of the DU TOTAL ELECTRIFICATION CAN NOT BE ACHIEVED BY GRID EXTENSION ALONE

5. Electrification Strategies: Grid and Off-Grid PhP683,484.00ave. cost/sitio(NEA Budget 2015)

6. Philippine Solar Experience: Search for the Right Model After demonstrating and testing several market mechanisms, the Fee-for-Service by regulated Distribution Utilities appears to be most promising to be least-cost and sustainable (technically and financially)

7. PV Mainstreaming: Pilot Implementation

8. Pilot Implementation: Lessons and Challenges PV mainstreaming requires volume, a critical mass of consumers to ensure EC’s attention and resources for sustained implementation. The need for EC ownership and government’s participation and support proved vital. PV Project designs must remain flexible and adaptable to address issues of affordability, risks and other market constraints. Strong need for community information/education Assurance of good quality systems and customer service Needs ERC-Approved Tariff

9. Philippines: Access to Sustainable Energy Programme (ASEP) DOE: Program OwnerEU as donor, World Bank as trustee for part of the EU funds European Union World Bank • €60-million commitment • Administers: • DOE Technical Assistance (GIZ) • Call-for-proposals • Administration, evaluation, etc. • Administers subsidy fund for: • PV Mainstreaming of Solar Home Systems (SHS) • Targets: 40,500 HHs for 2 yrs • Rural Network Solar (RNS) & Pre-Paid Metering (PPM) pilot • TA for DOE, NEA, ERC • Program management assistance from LGUGC

10. PV Mainstreaming – what is it? • Solar home systems as a utility service offering: “SAAS” • ERC-regulated SHS Electricity Services • Electric Cooperatives will own the SHS but has obligation to maintain • First cost of installed SHS will be subsidized (same as Sitio Electrification Program subsidies) • Electric Cooperatives will collect service charges to recover efficient costs of maintaining and replacing components

11. Target ECs for ASEP PVM

12. Service Package 1 Service: Typical appliances and lights supported Package Specifications *Specifications considered average solar irradiance in PH, load and battery characteristics

13. Service Package 2 Service: Typical appliances and lights supported Package Specifications

14. Quality certification by Lighting Global PV Mainstreaming program will subsidize only solar home systems and appliances that are quality-certified by Lighting Global www.lightingglobal.org

17. REPUBLIC OF THE PHILIPPINESDEPARTMENT OF ENERGYELECTRIC POWER INDUSTRY MANAGEMENT BUREAU END OF PRESENTATION THANK YOU! With the Cooperation of the National Electrification Administration