wind project project update july 2016
TRANSCRIPT
Project Update:
Potential for Wind Power in Philippines: Moving Toward Greener Energy-RUTH P BRIONES
ALL RIGHTS RESERVED
TOPICS:
WIND POWER GLOBALLY PHILIPPINE ENERGY PLANWIND POWER STATUSBARRIERS TO WIND ENERGY TECHNOLOGY
OPPORTUNITIES IN THE PHILIPPINE WIND ENERGY MARKET
GLOBAL FRONT
•After setting new records in 2014, the wind power industry surprised many observers with another record breaking year in 2015:
•Chalking up 22% annual market growth;
•Passing the 60 GW mark for the first time in a single year;
•Broken the 50 GW mark for the first time in 2014;
•Big story was China, installing an astonishing 30.8 GW against the backdrop of a slowing economy and nearly flat demand;
•Europe and the United States had surprisingly strong years;
•Canada, Brazil, Mexico and other ‘new’ markets continued to develop.
NEW GLOBAL TOTAL WIND POWER INSTALLED: 432.9 GW
i. 2015 total investments in the clean energy sector reached a record USD 329bn (EUR 296.6bn).
ii. 2015 figures were up 4 percent from 2014’s investment of USD 316bn (EUR 238.1bn)
iii. Beating the previous record set in 2011 by 3 percent
STATUS OF WIND POWER CAPACITY GLOBALLY - 2015
FROM A SOURCE
Wind power market forecast for 2016-2020
BIG TRENDS TO DRIVE GROWTH:
• CLIMATE
• CATERING PRICES
• US MARKET STABILITY
WIND POWER IS TRANSFORMING THE
POWER SECTOR- GLOBALLY--
WIND POWER LED ALL TECHNOLOGIES IN
NEW POWER GENERATIONS IN 2015.
FORECAST
2016-2020
• CHINA CONTINUE TO DOMINATE DURING THE PERIOD OF 2016-2020 CAPTURING 50% OF THE GLOBAL MARKET;
• EUROPE CONTINUE IN STEADY PACE- 2020 TARGET;
• MEXICO, CANADA, US and NORTH AMERICA- POLICY FOOTING AND CONTINUE STRONG GROWTH
The policy thrusts of the Philippine Energy Plan
a. Ensure Energy Security
b. Expand Use of Renewable Energy
c. Accelerate Exploration of petroleum and coal
d. Expand energy access
e. Promote Low Carbon Future
f. Make Energy efficiency a way of Life for Filipinos
g. Promote use of clean alternative fuels and technologies
h. Climate proof the energy sector
i. Develop Regional Energy Plans
j. Promote Investment in the Energy Sector and
k. Identify and Implement energy sector reforms.
PHILIPPINE ENERGY PLAN
2012-2030
The PEP, by developing and utilizing renewable energy sources like hydro, geothermal, solar, wind, biomass and ocean energy
Highlight the policy vision of an economy which will become largely decarbonized.
National Renewable Energy Program
Wind Power: 76,600 MW
Renewable Energy Goal
Be Number one wind energy producer in South East ASIA
Renewable Energy Law of 2008 100% INCREASE RE-BASED CAPACITY BY 2030 – thru enhancement of policies and programs, establishment of market-driven RE industry;
Republic Act No. 9513 (R. A. 9513) or the Renewable Energy Act of 2008 establishes necessary infrastructure and mechanisms to attain our RE Goals
Section 27 (b) of the law and Section 31 (a) of the ImplementingRules and Regulations - mandate the DOE, in consultation withits stakeholders, to formulate and facilitate the implementationof NREP.
NREP ROADMAP
Target additional RE capacities are reached by: 2022 :
• Wind : 2,345 MW 2023
• Hydro : 5,398 MW 2025
• Ocean : 75 MW 2030
• Solar : 284 MW
• Geothermal : 1,495 MW
2025 – Wind grid parity is attained
To increase renewable energy capacity to
15,400 megawatts by 2030 from about 5,400
MW at present, helping cut the country’s
dependence on imported oil.
TARGET
STATUS OF WIND POWER CONTRACTS BY THE DOE AS OF MARCH 2016
ISLANDS AWARDED CAPACITY INSTALLED CAPACITY PENDING
LUZON 1,079.0 MW 336.0 MW 240.0 MW
VISAYAS 89.0 MW 90.0 MW 63.0 MW
TOTAL 1,168.0 MW 426.0 MW 303.0 MW
FIT : PHP 7.40 /kWh
• 48- MW PASUQUIN EAST WIND – ENERGY LOGISTICS
• 72- MW WIND PROJECT MABITAC, LAGUNA
• 45-MW BALAOI – NORTHERN LUZON UPC
2016 – 20I7 TARGET
COMPLETION
TARGET: 400.0 MW
USING WIND POWER MOVING
TOWARDS CLEAN ENERGY
“Renewable
energy will fuel
our future.”
Why Philippines
needs clean and
green energy
DRIVERS FOR WIND POWER MARKET
i. Climate
ii. Competitiveness
iii. Energy security ranks high up on the list of drivers for theglobal market
iv. The need to clean the air of the choking smog that is makingmore and more of the developing world’s major citiesunlivable.
v. The demand for clean, sustainable and indigenous powersources to fuel economic growth outside will continue togrow, especially in emerging economies across Africa, Asiaand Latin America
BARRIERS TO WIND ENERGY DEVELOPMENT IN THE PHILIPPINES
i. CAPACITY ALLOCATION TO THE LOCATION
ii. SITE SELECTION INCLUDING GEOGRAPHY/TOPOGRAPHY/WIND/RESOURCE
iii. LAND CLEARANCE
iv. SUITABLE POLICY FRAME WORK
v. WTG TECHNOOLOGY
vi. POWER EVALUATION UP TO GRID
The barriers are encountered
during:
1. pre-implementation stage
2. pre-development stage
3. development stage
4. construction
5. operation
Overcoming the barriers
Need for long term perspective in policies which will provide greater regulatory and policy certainty to the
investors and will help in attracting more investment in the state;
Provide Project location information such as whether the project is on forest, revenue or private land;
Minimize the delay in land identification/allotment for wind energy projects by simplifying the procedures
and allow the purchase of private land directly from landowners;
Investors of wind energy should be allowed to sell electricity not fighting their stake in the FIT ;
Signing of Offtake Purchase Agreement (PPA), Wheeling and Banking, etc., should be done immediately
after commissioning the wind project to avoid generation loss for the investor;
Specification of region-wise Capacity Utilization Factor (CUF)/tariff based on Wind Power Density (WPD)
to motivate the investors to explore new sites with varying wind speeds and wind power densities;
After initial capacity allotment by the government the DOE must clear the capacity enhancement/capacity
transfer:
Policy framework for repowering of wind farms is to be enunciated.
Opportunities in the
Philippine Wind Power Market
i. The Philippines has overtaken all other members of the Association of Southeast Asian Nations in terms of installed wind energy capacity.
ii. Philippines now has an operational wind energy capacity of 400 MW, more than anything other country in the Association of Southeast Asian Nations (ASEAN) region
iii. Target to increase the installed wind energy capacity to 1,600 MW over the next 2-3 years.
iv. DOE has identified at least 44 potential sites for setting up wind turbines which together can support 1,168 MW of wind energy capacity.
