Presenter: Carlos Gatmaitan

1. PHILIPPINE
RENEWABLE ENERGY
SITUATIONER
Renewables
Corporation

2. Accelerate the development of the country’s renewable
energy resources by providing fiscal and non-fiscal
incentives to private sector investors and equipment
manufacturers / suppliers.
RA No. 9513: Renewable Energy Act
of 2008

3. • A policy which places an obligation on the electric power
industry participants such as generators, distribution,
utilities, or suppliers to source or produce a specified
fraction of their electricity from eligible RE resources.
• Purpose: To contribute to the growth of the renewable
energy industry by diversifying energy supply and to
help environmental concerns of the country by reducing
greenhouse emissions.
Renewable Portfolio
Standards (RPS)

4. 4
Feed-in-Tariff (FIT)

5. • The REM will be a sub-market of the
WESM where the trading of RE certificates
may be made.
Renewable Energy Market
(REM)

6. • A mechanism to be established by
Philippine Department of Energy which
shall provide end-users the option to
choose RE Resources as their source of
energy.
Green Energy Option (GEO)

7. RE Fiscal Incentives
Incentive RE Developer RE
Commercialization
7-year Income Tax Holiday Yes Yes
Duty-free Importation Yes Yes
VAT-free importation No Yes
Special Realty Tax Rate Yes Yes
Net Operating Loss Carryover Yes Yes
10% Corporate Tax Rate Yes
Accelerated Depreciation Yes Yes
Zero Percent VAT on RE Sales and Purchases Yes Yes
Cash Incentive (50% of UC for Missionary
Electrification
Yes
Tax Exemption on Carbon Credits Yes
Tax Credit on Domestic Capital Equipment & Services Yes Yes

8. Power Generation Mix
Philippines vs. ASEAN Member States
ASEAN-6 Power Generation Mix, as of 2013
Source: DOE, EGAT, Ministry of Energy and Mineral Resources (Indonesia), Economic Planning Unit (EPU-Malaysia) ERAV and EMA
* Include Import
Other RE

9. PH vs ASIAN COUNTRIES
Country RE Component (%)
Philippines 26
Thailand 12
Indonesia 12
Malaysia 11
Vietnam 47
Singapore
4
***Philippines has the 2nd (26%) highest RE component among the neighboring countries next to Thailand.
**Vietnam has the highest (47%) Hydro component into their Total Power Generation mix.

10. Coal
11.3%
Oil Based
37.9%
Geothermal
5.3%
Hydro
45.0%
Solar
0.0%
Biomass
0.5%
Dependable Capacity = 15,878 MW
RE Share = 31.33%
Dependable Capacity
= 11,868 MW
RE Share = 25.3%
Source: DOE List of Existing Power Plant, June 2015
Coal
38.0%
Oil Based
13.4%
Natural Gas
23.2%
Geothermal
5.8%
Hydro
18.1%
Wind
0.9%
Biomass
0.2%
Solar
0.3%
Dependable Capacity
= 2,150 MW
RE Share = 47.7%
Dependable Capacity
= 1,860 MW
RE Share = 50.8%
2015 Dependable Capacity Mix
LUZON VISAYAS MINDANAO
Coal
29.3%
Oil Based
22.9%
Geothermal
38.0%
Hydro
0.5%
Biomass
3.3%
Natural Gas
0.0%
Solar
1.9%
Wind
4.0%

11. Total Generation = 28,033 GWh
RE Share = 13.5%
Source: submitted Monthly Operations Report
NGCP Daily Operations Report
Total Generation = 5,336 GWh
RE Share = 55.1%
Total Generation = 4,837 GWh
RE Share = 51.4%
Total Generation = 38,206 GWh
RE Share = 24.1%
LUZON VISAYAS MINDANAO
Coal
16.9%
Oil-based
31.8%
Natural Gas
0.0%
Geothermal
8.8%
Hydro
42.2%
Wind
0.0%
Biomass
0.3%
Solar
0.0%
Power Generation Mix
January to June 2015
Coal
51.9%
Oil-based
2.2%
Natural Gas
32.5%
Geothermal
7.3%
Hydro
5.2%
Wind
0.7%
Biomass
0.2%
Solar
0.1%
Coal
38.9%
Oil-based
6.0%
Natural Gas
0.0%
Geothermal
52.5%
Hydro
0.3%
Wind
1.2%
LFG
0.0%
Biomass
0.7%
Solar
0.4%

12. 0
20
40
60
80
100
120
140
2001
2005
2009
2013
2017
2021
2025
2029
2033
2037
2041
2045
2049
GW
Business- As-Usual
Other Tech
RE
Geothermal
Hydro
Coal
NG
Oil
0
20
40
60
80
100
120
140
2001
2005
2009
2013
2017
2021
2025
2029
2033
2037
2041
2045
2049
GW
Clean Energy Scenario
Other Tech
RE
Geothermal
Hydro
Coal
NG
Oil
Projected Energy Mix
DOE plans to have a balanced mix of energy sources:
(30% RE, 30% NatGas, 30% Coal, 10% Others)

13.  Power and Renewable Energy
• Must Dispatch and Priority Dispatch of Renewable Energy
Resources in the WESM
• Mandating All DUs to Undergo Competitive Selection Process
(CSP) in Securing Power Supply Agreements (PSA)
• Full Implementation of Retail Competition and Open Access
(RCOA)
• Maintaining the Share of RE Resources in the Country's
Installed Capacity at 30%
• Further Enhancement of the WESM Design and Operations
• Commercial Operation of the Central Scheduling and Dispatch
of Energy and Contracted Reserves in the WESM
• Adoption of WESM Offer Price Cap (PHP 32) and Floor Cap
Major Policies Issued

14. Department of Energy
PNOC RC
PNOC Renewables Corporation
PNOC EC
PNOC Exploration Corporation

15. VISION
PNOC Renewables Corp will
be a catalyst & prime mover
for Philippine Renewable
energy development by 2030.
Renewables
Corporation

16. PNOC RENEWABLES
CORPORATION
PROJECTS

17. MINOR INVESTOR IN THE 20 MW
MAIBARARA GEOTHERMAL PROJECT

18. 1MW Rizal Hydro Power Plant

19. 100 kW PNOC RC & Philippine
Heart Center Inauguration

20. 100 kW PNOC RC & DOST-PCIERD

21. 100 kW UP DILIMAN CAMPUS

22. 100 kW DENR-EMB

23. We Target to have 20 Government Agencies
signed up next year…
25

24. PNOC RENEWABLES
CORPORATION
Pipeline of
PROJECTS

25. • GEOTHERMAL
– Investment in a 20MW Geothermal Project
• SOLAR
– Development of 22 Solar Rooftop Projects
– Development of 6 Solar Farm Projects totalling
25MW
• ESCO
– Development of 15 LED Retrofitting Projects
27

26. • BIOMASS
– Investment in a 2MW Waste-to-Energy Project
– Development of 3 Biomass Projects totaling 3MW
• WIND
– Development of three small-scale wind projects totaling
300kW
• HYDRO
– Development of 6 mini hydropower projects totaling 16
MW
– 630 kW Munoz
28

27. WE CAN DEVELOP PROJECTS FROM PRE-
DEVELOPMENT TO COMMERCIALITY
29
PRE-DEVELOPMENT STAGE DEVELOPMENT STAGE
Commercial
Operation
Award
of
contract
area
Service
Contract
• Studies
• Secure
Permits
• Sales
Agreement
Pre-Dev
Stage
• Financial
Closure
• Detailed
Design
• Construction
Dev
Stage

28. Requirements of RE Service Contract
Pre-Development Stage to
Development/Commercial Stage
1. Letter of Application For RESC or Conversion from Pre-
development Stage to Development Stage
2. For Explored Projects prior to RA 9513, same Requirements
under Pre-development Stage
3. Declaration of Commerciality based on Identified Market
4. Detailed Feasibility Study and Engineering Design

29. Requirements of RE Service Contract
Pre-Development Stage to
Development/Commercial Stage
5. Permits, Clearances, Certificates, Agreements
• Environmental Compliance Certificate or Certificate of
Non-Coverage
• Free and Prior Informed Consent, Pre-condition and/or
Non-overlap
• Special Land Use Permit / Forest Lease Agreement,
Proof of Ownership / Lease Agreement
• Water Rights Permit (Hydropower)
• Rights of Way
• LGU Endorsements
• Other applicable regulatory requirements

30. PARTNERSHIPS WITH THE PRIVATE
SECTOR
• As a bidder for projects
posted in PhilGEPS
– Following RA 9184 (Government
Procurement Reform Act)
• As a Joint Venture Partner
– Following 2013 NEDA Joint
Venture Guidelines
• Through a Public-Private
Partnership (PPP)
– Following RA7718 (Revised BOT
Law)
– With the assistance of the PPP
Center

31. WHAT ARE THE REQUIREMENTS?
Foreign partners:
 Register the company
in the Philippines
 Letter of Intent to
either partner with
PNOC RC or engage
PNOC RC for its
services
 Proof of Legal,
Technical and Financial
Capabilities
33
Renewables
Corporation

32. PNOC RC’s SMART Village Initiatives
Partnership with National
Power Corporation (also a
GOCC) responsible for
operation and
improvement of electricity
supply for Small Power
Utilities Group (SPUG)
areas
Continued linkaging and
providing technical
support with LGUs on RE
resource assessment
34
Renewables
Corporation

33. PNOC RC’s SMART Village Initiatives
Implemented the
Barangay Electrification
Program (BEP) in 92 off-
grid barangays nationwide
in 2009
 Social preparation, supply,
delivery, installation of solar
home systems, conduct
after sales assessment
35
Renewables
Corporation

34. THANK YOU and get in touch:
Email: info@pnoc-rc.com.ph
Website: http://www.pnoc-rc.com.ph/
Phone: +63 (02) 840 – 3080
Renewables
Corporation