philippine feed-in tariff system implementation sharon o. montañer chief- office of the executive...
DESCRIPTION
Renewable Energy Act of 2008 Republic Act No An Act Promoting the Development, Utilization and Commercialization of Renewable Energy Resources and For Other Purposes December 16, 2008TRANSCRIPT
Philippine Feed-In Tariff System
ImplementationSharon O. Montañer
Chief- Office of the Executive DirectorMember – RE Technical Working Group
2
Chapter IV - Regulation of the Electric Power Industry
Section 38. Creation of the Energy Regulatory Commission. There is hereby created an independent, quasi-judicial regulatory body to be named the Energy Regulatory Commission (ERC). xxx
Section 41. Promotion of Consumer Interests. xxx and ensure the adequate protection of consumer interests. Xxx
Section 43. Functions of the ERC. The ERC shall promote competition, encourage market development, ensure customer choice and discourage/penalize abuse of market power in the restructured electricity industry. xxx
Energy Regulatory Commission
Renewable Energy Act of 2008
Republic Act No. 9513
An Act Promoting the Development, Utilization and Commercialization of Renewable Energy Resources and For
Other Purposes
December 16, 2008
Renewable Energy Act of 2008
On-Grid Renewable Energy DevelopmentRenewable Portfolio StandardsFeed-In Tariff SystemRenewable Energy MarketGreen Energy OptionNet-metering for Renewable Energy
Off-Grid Renewable Energy DevelopmentMinimum RE generation capacities
4R.A. 9513
* Section 6 of the RE Law 5
Defined as “a market-based policy that requires electricity suppliers to source an agreed portion of their energy supply from eligible RE resources”
The NREB shall set: Minimum percentage of generation from
eligible renewable energy resources Which sector RPS shall be imposed on a
per grid basis
Renewable Portfolio Standards
* Section 8 of the RE Law 6
The DOE shall establish the REM Direct PEMC to implement changes to the WESM
rules in order to incorporate the rules specific to the operation of the REM under the WESM
PEMC, under DOE supervision, establish a Renewable Energy Registrar Issue, keep and verify RE Certificates
Renewable Energy Market (REM)
* Section 9 of the RE Law 7
The DOE shall establish a Green Energy Option program which provides end-users the option to choose RE resources as their sources of energy
End-users may directly contract from RE facilities their energy requirements
TRANSCO, DUs, PEMC and all relevant parties are hereby mandated to provide the mechanisms for the physical connection and commercial arrangements necessary to ensure the success of the Green Energy Option
ERC to develop regulatory framework
Green Energy Option
* Section 10 of the RE Law 8
Net Metering for RE
DUs may enter into Net-Metering agreements with qualified end-users
The ERC, in consultation with the NREB shall develop Net-metering interconnection standards and pricing methodology and other commercial arrangements
The DOE, ERC, Transco, DUs, PEMC and all relevant parties are mandated to provide mechanisms for physical
connection and commercial arrangements
Section 7: Feed In Tariff System Mandate ERC, in consultation with the NREB For emerging renewable energy resources to be used in
compliance with the renewable portfolio standard Wind Solar Ocean Run-of-river Hydro Biomass
Priority connection to the grid Priority purchase and transmission of, and payment for, such
electricity by the grid system operators Fixed tariff by technology Mandated number of years, not less than 12
Feed-In Tariff Rules
Republic Act
No. 9513
Renewable
Energy Act of 2008
Section 7
ERC Resolution No. 16, Series of 2010(July 12, 2010)Resolution Adopting the Feed-in Tariff Rules
ERC Resolution No. 15, Series of 2012(November 19, 2012)Resolution Adopting the Position of the Commission on the Issues Paper Published on 02 April 2012 and the Corresponding Amendments to the Feed-in Tariff Rules
END USERS
The Overall FIT Framework
TransCo
FIT-ALL
END-USERS
The FIT to be Paid to RE Developers
Based on cost of a representative project Technology-specific20 years durationSubject to degression and adjustments Subject to review
NREB ERC FIT
ERC-Approved FITs
NREB(in PhP/kWh)
ERC-Approved(in PhP/kWh)
ROR Hydro 6.15 5.90Solar 17.95 9.68Wind 10.37 8.53Biomass 7.00 6.63
Note: Decision on OTEC FIT deferred
ERC Case No. 2011-006 RM
Effectivity“Payment of the approved FIT rates to the eligible RE Developers shall commence upon the effectivity of the Feed-in Tariff Allowance (FIT-All), which shall be determined by the Commission at a later date after due proceedings thereon.”
ERC-Approved Degression RatesERC-Approved(in PhP/kWh)
ROR Hydro 0.5% after year 2 from effectivity of FIT
Solar 6% after year 1 from effectivity of FIT
Wind 0.5% after year 2 from effectivity of FIT
Biomass 0.5% after year 2 from effectivity of FIT
Section 2.5: FIT Rules
Uniform ₱/kwh charge Payable by all electricity users Periodically calculated and set Based on forecasted RE deliveriesProceeds go to a fund administered by
Transco from where the RE payments will be sourced
TRANSCO ERC FIT-ALL
Feed-In Tariff Allowance (FIT-All)
Other Provisions: FIT Rules
Sec. 2.6 of the FIT Rules provides that NREB shall establish more detailed guidelines for the collection & disbursement of the FIT-All Fund.
Sec. 2.9 of the FIT Rules provides that ERC may consider the issuance of additional guidelines governing the dispatch and settlement of the FIT.
RULES ENABLING THE NET-METERING PROGRAM FOR RENEWABLE ENERGY
Renewable Energy – Technical Working Group
Introduction Resolution No. 9, Series of 2013 - A Resolution
Adopting the Rules Enabling the Net-Metering Program for Renewable Energy
Components: Rules Enabling the Net-Metering Program (Annex A) Net-Metering Interconnection Standards (Annex A-1) Net-Metering Agreement Template (Annex A-2)
Approved on May 27, 2013
Effectivity on July 24, 2013
18
Legal Basis
Section 10 of R.A. 9513 and Section 7 of its IRR provides that the ERC, in consultation with
NREB, shall establish the net-metering interconnection standards and pricing
methodology.
19
Scope, Applicability & Qualification Applicable to on-grid systems. Only for installation of < 100kW. For eligible RE Technologies such as wind, solar,
biomass or biogas or other RE systems capable of being installed in the QE’s premises.
End-user should be in good credit standing in the payment of electric bills to the DU.
The RE System must be compliant with the standards set in the PEC, PDC, DSOAR and the Net-Metering Interconnection Standards.
20
Interconnection Set-Up
Either 2 uni-directional meters or one bi-directional meter. Third meter may also be
installed to measure total RE generation.21
Import Meter(delivered energy)
Export Meter(received energy)
REC Meter
Pricing Methodology Interim pricing for export energy is the DU’s
monthly charge based on its blended generation cost.
This cost shall be automatically included in the DU’s total generation cost to be recovered from all its customers.
22
Pricing Methodology
23
P5.6580
Generation
Transmission
Distribution
End-User
P5.6580
P1.1839
SL: P0.4723DSM: P1.9112Subs: P0.1093Tax: P0.9046UC: P0.1188
P11.1106/kWh
+ =+
Net-Metering Charge
Net-metering charge is equivalent to PhP/customer/month supply and metering rates; plus the ERC-approved PhP/kWh metering rate based on export energy.
DUs may file for a different net-metering charge, if necessary.
24
Billing Charge
Billing Charge:PhP for import energy
Less: PhP export energyPhP credited in previous monthTOTAL
If positive: QE shall pay this amount to DUIf negative: DU shall credit this amount to QE’s next bill
25
Net-Metering Interconnection Standards
Annex A-1
Interconnection Standards
General Guidelines Application for Interconnection System Parameters System Protection Operations & Maintenance Metering Testing & Commissioning
27
General Guidelines Design, installation, operations and maintenance shall be in
consultation with the DU, since all specifications shall be of DU’s standards.
System requirements shall be met at the Connection Point. The DU shall only allow interconnection of RE facilities with up to
100kW capacity per QE account. The DU shall conduct inspections and shall remove the
generation from DU system at any time due to maintenance, test, repair and emergency conditions.
QE to be liable for any damages of the DU should the QE execute changes to the RE facilities without first informing the DU.
28
Application for Interconnection
QE and DU to enter
into a Net-Metering Agreement.
QE to send a letter requesting DU for interconnection.
DU to provide information
to QE.
QE to complete and file an application.
DU to acknowledge within 10 business days from receipt.
ACKNOWLEDGEDU to determine whether DIS and/or DAS is necessary.
If yes:DU shall provide
results of study.
DU, with QE to conduct on-site inspection.
29
Application for Interconnection
QE and DU to enter
into a Net-Metering Agreement.
QE to send a letter requesting DU for interconnection.
DU to provide information
to QE.
QE to complete and file an application.
DU to acknowledge within 10 business days from receipt.
ACKNOWLEDGEDU to determine whether DIS and/or DAS is necessary.
If yes:DU shall provide
results of study.
DU, with QE to conduct on-site inspection.
Pro forma agreements Application form
• Description of proposed connection• Relevant Standard Planning Data • Other data required by DU• Completion date
Technical requirements Specifications Listing of certified equipment Application fee information Applicable rate schedules Metering requirements 30
System Parameters Voltage Level - should be the same level as the DU with automatic
method of disconnecting. Frequency – 60 Hz with automatic method of disconnecting. Power Quality
Limitation of DC injection – not to inject current greater than 0.5% of the full load rated output current at connection point.
Flicker severity – not to exceed 1.0 unit for ST and 0.8 units for LT.
Harmonics – within limits in Sec. 3.2.4 of PDC Power Factor – not less than 85% lagging measured at the
Connection Point.
31
System Protection Synchronization – QE to provide synchronizing devices with typical
limits in the NM Standards. Islanding – QE system should detect islanding and disconnect within 2
seconds from formation. Integration with DU’s Distribution System Grounding – shall be
grounded in accordance to PEC. Protective Control Devices
Disconnect device – visible for use by the DU within 10 feet from connection point.
Protective relays – protective relays provided in NM Standards Reclosing – immediate disconnection from the DU system when the
system is down.
32
Operations & Maintenance Facility should operate in parallel with the DU. QE must inform the DU if it is going to
synchronize. If the DU system is down, the facility should
automatically disconnect. QE to provide DU with contact numbers. QE shall maintain the facility in a safe manner
as approved by the DU.
33
Metering MSP shall own and shall be responsible for the
operations and maintenance of the meter in accordance with Sec. 2.11 of DSOAR.
QE to provide space for the metering facilities. Metering facilities shall be installed in an
accessible and visible area for reading and testing of both QE and DU.
34
Commissioning Test shall include the following:Verification and
inspectionsProduction Test
Response to abnormal voltage
Response to abnormal frequency
SynchronizationUnintentional islanding
functionality testCease-to-energize
functionality test
Testing and Commissioning Commissioning test shall be
conducted after the interconnection system is installed.
DU has the right to witness the testing and commissioning.
RE facility shall be equipped with whatever equipment is required to perform the test.
35
Net-Metering Agreement
Annex A-2
Net-Metering Agreement
Parties: DU and Qualified End-user
Mirrors the provision in the Rules Enabling the Net-Metering Program (i.e. Compliance Standards, Interconnection Set-Up, DU Inspection, Meter Readings, Pricing and Other Charges).
To be submitted to ERC, DOE & NREB within 5 days from execution.
Deemed approved and effective upon submission to ERC.
37
ISSUES
ISSUES
1. DUs are not precluded under the Rules from paying out in cash its accumulated peso credit at the end of each calendar year.
2. QE is an entity distinct from that of an SGF and IPP, thus:– It is not covered by the imposition of the universal charge
required of SGF.– It shall apply for COC as QE.
3. Customer who intends to install beyond 100kW:– Must comply with the PDC and DU Standards– Must apply for COC as SGF, if generation is for own use – Must enter into PSA with a DU for ERC’s approval, if it will sell to
a DU
39
UPDATES
1. The ERC already received two (2) Net-Metering Agreements submitted by MERALCO.
– 5.4 kWp installation in Manila– 2.5 kWp installation in Rizal
2. The ERC has conducted a public consultation on 28 January 2014 on the Amended Certificate of Compliance Guidelines covering the COC compliance of Qualified Net-Metering Customers.
40
