a guidebook on renewable energy project development

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Capacity Building to Remove Barriers to Renewable En-

ergy Development (CBRED) is a joint project of the Depart-ment of Energy, United Nations Development Program andthe Global Environment Facility. CBRED Project aims to

reduce greenhouse gas emissions by the removal of majorbarriers to RE that will lead to the development and wide-

spread utilization of RE systems and application.

GlobalEnvironmentFacility

UnitedNationsDevelopment

Departmentof Energy

GG UIDEBOOK ONUIDEBOOK ON

RR ENEWABLEENEWABLE

EE NERGYNERGY

PP ROJECTROJECT DDEVELOPMENT ANDEVELOPMENT ANDPP ACKAGING ACKAGING (PDP)(PDP)

Thru the project :

GEF-UNDP-DOE CBRED PROJECT PHI/01/G33Philippines : Capacity Building to Remove Barriers toRenewable Energy Development

GlobalEnvironmentFacility

United

NationsDevelopmentProgramme

Departmentof Energy


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MINDANAO 1. Prof. Reynaldo Juan

Central Mindanao University

College of EngineeringUniversity Town, Musuan, Bukidnon(088) 844-2520 / (02) 521-6036 (CMU Manila Office)

2. Mindanao State UniversityCollege of AgricultureMarawi City, Lanao del Sur

3. Sultan Kudarat Polytechnic State CollegeBarrio 2, Tacurong, Sultan Kudarat

(064) 200-4253 / 200-4281

4. Fulton U. YapUniversity of Southeastern PhilippinesCollege of EngineeringBo. Obrero, Davao City

/ (082) 221-4941

5. Western Mindanao State UniversityNormal Road, Zamboanga City

(062) 991-7427 (062) 991-3085

6. Alejandro S. VillamorXavier UniversityCollege of AgricultureCagayan de Oro City

(088) 724-096(088) 722-994, (088) 858-8962

GUIDEBOOK ON RE PDP

TABLE OF CONTENTS

PAGE

1. Introduction 1

2. Philippine RE Resource Potential 1

3. Objectives 1

4. RE Project Development and Packaging 2Process

4.1. Pre-investment Phase 24.1.1. Assessing the target site 34.1.2. Identify your partners for the project 84.1.3. Business Plan Preparation 114.1.4. RE Project Financing 14

4.2. Implementation Phase 18

4.2.1. Business Plan Implementation 184.2.2. Project Monitoring and Evaluation 18

Appendix 1. Additional References for RE Project 20Development and Packaging

Appendix 2. Partner Institutions in RE Project Development 21Appendix 3. List of DOE-ANECs 24

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LIST OF ACRONYMS

ANEC—Affiliated Non-Conventional Energy CenterBDC—Barangay Development Council

CBO—Community-Based OrganizationCBRED—Capacity Building to Remove Barriers to RE DevelopmentCDM—Clean Development MechanismCER—Certified Emission ReductionDBP—Development Bank of the PhilippinesDENR—Department of Environment and Natural ResourcesDOE—Department of EnergyDTI—Department of Trade and IndustryEC—Electric CooperativeECC—Environmental Compliance CertificateEIS—Environmental Impact StatementFPIC—Free Prior and Informed ConsentGEF—Global Environment FacilityGHG—Greenhouse GasIEE—Initial Environmental ExaminationIOU—Investor Owned UtilityIP—Indigenous PeopleIRR—Internal Rate of ReturnLBP—Land Bank of the Philippines

LGU—Local Government UnitLGUGC—LGU Guarantee CorporationNCIP—National Commission on Indigenous PeoplesNEDA—National Economic Development AuthorityNGO—Non-Government OrganizationO&M—Operation and MaintenanceOSW—Ocean, Solar, WindPCC—Pre-Commercial ContractPNCC—Pre-Negotiated Commercial ContractPPF—Project Preparation FundPRA—Participatory Rural AppraisalRE—Renewable EnergyRESCO—Renewable Energy Service CompanySLUP—Special Land Use PermitTRANSCO—National Transmission CorporationTSA—Transmission Service AgreementUNDP—United Nations Development Programme

GUIDEBOOK ON RE PDP

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GUIDEBOOK ON RE PDP

8. Mariano Marcos State UniversityCollege of Agriculture and ForestryBatac, Ilocos Norte

(077) 792-3879

9. Western Philippines University(formerly State Polytechnic College of Palawan)College of EngineeringAborlan, Palawan

(048) 433-4480

VISAYAS 1. Jeriel G. Militar

Central Philippine University

College of EngineeringRm. 113-B, Ground Flr., Engineering Bldg.,Lopez Jaena St., Jaro, Iloilo City

/ (033) 320-3004 [email protected] / [email protected]

2. Manolo B. Loreto, Jr.Leyte State UniversityDepartment of Agricultural EngineeringVisca, Baybay, Leyte

(053) 335-2624 (053) 335-2601

3. Dr. Nichol R. ElmanSilliman UniversityUniversity Extension ProgramDumaguete City

(035) 225-2414 local 236 / 225-4535 (035) 225-4768 / 422-7207

4. University of Eastern PhilippinesCatarman, Northern Samar

(055) 354-1347 / 354-1349 (0) 354-1447

5. University of San CarlosArea Research and Training CenterP. del Rosario St., Cebu City

(032) 253-1000 local 207 (032) 253-7183 / 253-7989 / 348-7941 (PVP)


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Corresponding benefits and costs of each optionLeast cost technical option based on the following:

Technology—solar, wind, ocean, hydro, biomass, hybrid

Design—individual or centralizedCapacity/Scale—number of kw or MWGrid reference—off-grid, on-grid, mini-grid

Potential technology suppliers and their locationTerms for supplying the technologyLocal capability for servicing the technology

Output of the technology assessment is a cost-benefit analysis oftechnology options.

Activities/Parameters to Consider in the Conduct of Hydropower ProjectDevelopment Studies

Reconnaisance

Pre-feasibility Study Determine location of weir, headrace line, forebay, penstock,powerhouse, substation, tie line, and access road

Preliminary surveysHydrologic analysisCost estimatesEconomic/financial analysisIntegration and recommendations

Feasibilty Study Detailed topographic survey of the project siteEnvironmental studies/social acceptance

Detailed geologic investigation and mappingComprehensive hydrologic study including establishment ofgaging station, gage calibration and daily monitoring of flows,theoretical hydrologic calculations of stream flow generation,and rainfall runoff modelingPower market studyDesignCost estimatesComprehensive economic and financial study with sensitivityanalysisIntegration and recommendations

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Aspects to Monitor

Indicators Description

Activity schedules andmilestones

Important dates and activities to be com-pleted; deadlines to be met.

Costs and expenditures Estimates of how much you need to operateefficiently and reports of your actual expenses

Production and sales Projections and actual figures of amount ofenergy service provided by your business andyour revenues.

Market behavior Market growth and change in demandpatterns; consumer feedback.

Technical efficiency Operating efficiency of your RE facility in termsof reliability and stability

Source: Guidebook for Developing Sustainable Rural Renewable Energy Services,Department of Energy, April 2001.

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a guidebook on renewable energy project development

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