In accordance with the law, the Department of Energy (DOE) led the formulation of this National Renewable Energy Program (NREP), in consultation with its stakeholders.
RE has long been a major contributor to the country's primary energy supply mix. In 2010, the country's total primary energy supply reached 40.7 million tons of oil equivalent (MTOE). Of this amount, 23.4 MTOE was sourced locally, setting the energy self sufficiency level at 57.5%. RE resources contributed the highest share (68.1%) of the indigenous energy supply mix. Among the renewables, geothermal provided the biggest share of 53.2% of the RE supply mix. This is followed by biomass at 33.3% and hydro at 12.1%.
The NREP seeks to increase the RE-based capacity
of the country to an estimated
15,304 MW
by the year 2030, almost triple its 2010 level. |
To realize the country's RE goals, the NREP
1.Institutionalizes a comprehensive approach to address the challenges and gaps that prevent and/or delay wider application of RE technologies in a sustainable manner, and
2. outlines the action plans necessary to facilitate and encourage greater private sector investments in RE development.
On a per technology basis, the NREP intends to:
increase geothermal capacity by 75.0 percent;
Increase hydropower capacity by 160 percent;
Deliver additional 277 MW biomass power capacities;
Attain wind power grid parity with the commissioning of 2,345 MW additional capacities;
Mainstream an additional 284 MW solar power capacities and work towards achieving the aspirational target of 1,528 MW;
Develop the 1st ocean energy facility for the country.
The NREP is initially focused towards the addition of RE-based capacity for power generation. The program for non-power applications shall be incorporated subsequently.
The framework for the NREP emanated from individual work programs (i.e., the Sectoral Sub-programs) of each of the resources covered under RA 9513, namely: geothermal, hydropower, biomass, wind, Solar, and ocean. As may be decided later, other emerging RE technologies shall be included depending on their status of development and utilization.
Each sectoral sub-program follows a roadmap which serves as a guide for the achievement of the market penetration targets of a particular RE resource in the energy industry. It indicates the milestones over the 20-year planning period, the realization of which depends on the implementation of the following activities
RE Industry Services which includes assistance and advisory services to facilitate private sector investments in RE;
Resource Development to intensify the harnessing of the country's huge RE resource potential;
Research, Development and Demonstration (R, D & D) to determine the viability of adapting certain RE systems, technologies or processes in the Philippine setting, particularly in areas where there is no or limited local experience;
RE Technology Support which is geared towards the improvement of the quality, performance and cost of local RE systems for greater consumer protection and their competitiveness with the conventional forms of energy.
The NREP is intended to ensure that the policies,
mechanisms and rules mandated by
R.A. 9513
are put into action. |
The National Renewable Energy Program (NREP) Development Framework
| Sectoral SubPrograms | Geothermal Hydro Biomass Wind Solar Ocean Other Emerging Technologies | NATIONAL
RE
PROGRAM |
| RE Industry Service | Resource Development | R&D and Demonstration | RE Technology Support |
| -Review of applications; endorsement for registration | -Resource Assessment -Pre-feasibility studies | -RE System / Technology / process-adoption or development | -Standards Development |
| -Market development services | -Market studies | - Demonstration projects | -Quality Performance improvement |
| -Advisory services to RE Developers (Technical, Business, Matching, Etc.) | -Socio Economic and environmental Impact studies | | -Production cost reduction -Capacity building -Registration /Rating Program |
| -Monitoring of RE Contracts | -Optimization studies -Studies on non-power applications of RE resources | | *for manufacturers, engineering service provider |
| Policy and Program Support Component |
Policy Support -RE Law : Policy/mechanism formulation implementation & monitoring -Other policy studies | Program Support -Registration processing (one-stop-shop) -RE Information Exchange
-IEC Activities -M & E Activities -ARECs |
The specific projects and activities in each sector vary depending on the challenges and gaps facing the sector, and the needs of the stakeholder groups being served.
The sets of activities that cut across all the RE sectors are grouped into the Policy and Program Support Component. This involves common activities which require a coordinative and integrated
approach to implementation, to include:
- Policy Support which mainly involves the formulation, implementation and monitoring of the mechanisms, rules and regulations prescribed by the RE Law; and
- Program Support covering common support activities to ensure the smooth implementation of the NREP, e.g., establishment of the RE one-stop-shop, Integrated IEC Plan, RE Information Exchange and M&E system. The consolidated RERoadmap summarizes the milestones and capacity additions envisioned in the respective Sectoral SubPrograms described above.
Projected Milestone, 2011-2030
| Sector | Target indicative capacity addition achieved by | Others |
| Geothermal | 2027 | Low-Enthalpy Geothermal Resource Assessment completed by 2015 |
| Hydro | 2023 | Construction of Sea Water Pumped Storage Demo Facility by 2030 |
| Biomass | 2015 | Mandatory E10 blend for all gasoline vehicles by 2012 |
| Wind | 2022 | Grid parity by 2025 |
| Solar | 2030 | Smart Grid and Concentrated Solar Thermal Power Demo Completed by 2015: Grid parity 2020 |
| Ocean | 2025 | 1st Ocean Energy Facility Operational by 2018 |
The estimated capacity addition of 9,865 MW is broken down as follows:
| Sector | Installed Capacity, (MW) as of 2010 | Target Capacity Addition by | Total Capacity Addition (MW) 2011-2030 | Total Installed Capacity by 2030 |
| 2015 | 2020 | 2025 | 2030 |
| Geothermal | 1,966.0 | 220.0 | 1,100.0 | 95.0 | 80.0 | 1,495.0 | 3,461.0 |
| Hydro | 3,400.0 | 341.3 | 3,161.0 | 1,891.8 | 0.0 | 5,394.1 | 8,724.1 |
| Biomass | 39.0 | 276.7 | 0.0 | 0.0 | 0.0 | 276.7 | 315.7 |
| Wind | 33.0 | 1,048 | 855.0 | 442.0 | 0.0 | 2,345.0 | 2,378.0 |
| Solar | 1.0 | 269.0 | 5.0 | 5.0 | 5.0 | 284.0 | 285.0 |
| Ocean | 0.0 | 0.0 | 35.5 | 35.0 | 0.0 | 70.5 | 70.5 |
| Total | 5,438.0 | 2,155.0 | 5,156.5 | 2,468.8 | 85.0 | 9,865.3 | 15,304.3 |
The entry of the above-cited RE-based capacities is highly dependent on the successful implementation of the NREP as well as the policy and incentive mechanisms in the RE Law, Particular attention shall be given to the timely conduct of grid impact studies required for all facilities connecting to the grid.
It must be emphasized that the aggressive development of RE resources shall be balanced with the need to provide adequate, reliable and high quality power. It bears emphasis that while efforts to facilitate RE entry into the grid shall continue to be intensified, the stability of the grid shall be ensured as well. Hence, innovative mechanisms to assist the concerned industry participant, as may be necessary, may be developed as the NREP progresses.
Furthermore, REprojects in off-grid and SPUGormissionary areas, will be supported through effective coordination among DOE units concerned and its attached agencies (i.e., NPC-SPUG, NEA), as well as the electric cooperatives. The RE project developers' work programs shall be aligned and harmonized with the Missionary Electrification Development Plan. Compliance with relevant procedures and guidelines by Qualified. Third Parties or New Power Providers shall be ensured.
The NREP is aligned with the government thrusts to:
increase the country's energy self-sufficiency;
ensure energy security; and
promote sustainable development.
It is anchored on key DOE strategies, including:
to encourage greater private sector investments and participation through market-based incentives; and
to establish responsive market mechanisms for RE-based power generation. Additionally, it is guided by DOE's new Energy Reform Agenda, with its over-arching strategy of good governance and motto for leveling the playing field,
The smooth and successful implementation of the NREP and its accompanying sectoral sub-programs hinges on the commitment of the DOE and its attached agencies to support the policies enunciated by the RE Law, The cooperation of the RE stakeholders is critical and indispensable, To sustain this cooperation and support, the following strategies shall be carried out:
streamlining of the registration process;
transparency and due diligence in oper competition and bidding;
effective and efficient monitoring of contracts;
effective and timely delivery of services;
conduct of an integrated and aggressive information campaign, and
building of private-public partnerships, when feasible
Finally, the key word for the NREP is sustainability. A workable M & E mechanism will be developed to ensure that the gains envisioned by the RE Law are met and sustained. In the end, future generations of Filipinos shall reap benefits from a more sustainable environment through the long-term emission reduction impacts of RE, Socio-economic benefits will also be realized, not just through hard currency savings in avoided fossil fuel imports, but also on account of employment opportunities that will be generated by increased economic activities with more intensive private sector investments into the sector