Energy Engineering Program. Mission. Vision. Today s 3 Critical Challenges 5/24/2012

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1 Engineering Energy Program of the University of the Philippines & the Renewable Energy Act of 2008 Energy Engineering Program It was instituted in 1983 with the objective of training specialists who will: Develop indigenous sources of energy Improve the efficiency of energy utilization Introduce appropriate energy technologies Vision Mission Its vision is to be a regional hub for energy knowledge and technology and a pro active contributor to the country s progress toward energy security and sustainable development. The program engages in energy research and development of regional and national relevance, and the training to produce solution oriented leaders in the energy sector and to provide expert advice on energy issues of national and regional interest. Today s 3 Critical Challenges 1 How to spread the benefits of access to energy 2 3 How to contend with the eventual exhaustion of non-renewable energy resources How to prevent climate change caused (part in large) by the increasing concentration of CO 2 in the atmosphere 1

2 CO2 Emissions per capita per annum Some Pathways to a Sustainable Future Exploit the available domestic resource for some fraction of energy demand. Develop technologies that convert the resource to the desired form of energy. Have an energy mix and storage to reduce the intermittency problems of renewable energy. Goals Attain sustainable development in energy systems Multi Disciplinary Relationships Sustainability Develop elop areas and systems stems that help secure future energy needs. Economics Renewable Energy Governance Help mitigate climate change. Technology Sustainable Development Climate Change Energy Resource Availability System Tools Economic Tools Core Engineering Tools Stationary Applications Energy Systems Engineering Motive Applications Other Applications Conventional, Alternative Fuels Renewable Energy Transport Technology Transport System issues Improved Efficiency Sequester CO2 Sun Wind Water Soil Biofuel Hybrid Electric Fuel Cell Present Short Term Long Term RE Plan Have a transition period and state: A mix of conventional energy with renewable while RE technologies are under development Renewable Options are technology neutral: Select appropriate RE technology for the sufficiency of the resource Due to intermittent but statistically predictable energy resources, Have a mix of Renewable Energy Sources to reduce the intermittencies Adapted from Energy Systems Engineering by Vanek & Albright 5/24/

3 Philippine Reform Agenda 2010 Installed and Dependable Capacity Luzon, Visayas & Mindanao Energy Consumption Luzon Power Demand GW Whr Luzon Visayas Mindanao Total Policies under RA 9513 The Philippine Renewable Energy Outlook Renewable Energy Act of 2008 Republic Act No An Act Promoting The Development, Utilization And Commercialization Of Renewable Energy Resources Accelerate the exploration and development of renewable energy resources achieve energy self reliance to reduce the country s dependence on fossil fuels minimize the country s exposure to price fluctuations adoption of clean energy to mitigate climate change promote socio economic development in rural areas Increase the utilization of renewable energy by providing fiscal and non fiscal incentives 3

4 Policy Implementation Establishment of the Renewable Energy Management Bureau DOE s lead unit in the implementation of the Act Creation of the Negotiating Panel for RE Service / Operating Contracts Creation of the National Renewable Energy Board Sub committees & Working Groups Renewable Portfolio Standard / Feed In Tariff Net Metering Green Energy Option Renewable Energy Trust Fund The 2009 RE Policy Framework (REPF) o Increase RE based capacity by 100% within the next 20 years ( ) add geothermal energy production (additional 1,070 MW) add wind energy production (additional 515 MW) Double hydro capacity (additional 3,400 MW) Expand contribution of: biomass 200 MW solar 30 MW ocean energy 120 MW Update of the REPF Existing Target Total Resource Capacity (2008) Capacity (add) (in 2030) (MW) (MW) (MW) Geothermal 2,027 1,070 3,097 Hydro 3,367 3,400 6,767 Wind Solar Biomass Ocean Total 5,500 5,355 10,835 Summary of RE Resources Geothermal 1,200 MW Hydropower 10,500 MW Wind Energy 76, MW Micro Hydro untapped vast potential Solar Energy Avg potential 5kWh/m 2 /day Ocean Energy 170,000 MW Biomass (bagasse) total potential of 236 MW Fiscal Incentives for RE Developers Fiscal Incentives for RE Developers Government Share 1% of gross income on RE development projects 1.5% for geothermal resources Exemptions: biomass & micro scale projects for communal purposes & non commercial iloperations (up to 100kW) Duty free importation 10 year exemption from tariff duties Tax Credit on Domestic Capital Equipment & Services Equivalent to 100% of custom duties & value added tax Income Tax Holiday (ITH) 7 yr tax holiday, including new investment (< 3 times) Corporate Tax Rate 10% of net taxable income after ITH Net Operating Loss Carry Over 3 yr losses carried over 7 yrs, except those resulting from availment of other incentives Accelerated Depreciation Non availment of ITH Depreciation rate < twice the amount Zero Percent Value Added Tax Rate 0% on sale of fuel or power generated from RE sources 4

5 Fiscal Incentives for RE Developers Fiscal Incentives for RE Commercialization Special Realty Tax Rate on Equipment & Machinery < 1.5% of original cost Cash Incentives for Missionary Electrification 50% ofthe universal charge due Exemption from Universal Charge Generator s on consumption Free distribution in off grid areas Payment of Transmission Charges Avg per kwh rate of other electricity transmitted thru the grid Tax Exemption on Carbon Credits Tax & Duty free Importation of Components & Materials Exemption from importation tariff & duties & VAT Tax Credit on Domestic Capital Components, Parts & Materials 100% equivalent of custom duties & value added tax Income Tax Holiday 7 year tax exemption Zero rated Value Added Tax Transactions 0% VAT on transactions with local suppliers of goods, properties & services Non Fiscal Incentives Non Fiscal Incentives Renewable Portfolio Standards (RPS) Mandatory (percentage) utilization of RE generation system in on grid systems Feed in Tariff Priority connection to the grid Priority purchase & transmission of, & payment for, by grid system operators Fixed tariff for at least 12 yrs To be applied for generation utilized in complying with RPS Green Energy Option End users option to purchase electricity from RE facilities (open access) Net Metering Connection / sale of customers RE generation to the grid Renewable Energy Market Creation of separate RE market Establishment of RE Registrar for certification of RE generation which can be used for RPS compliance Non Fiscal Incentives Transmission and Distribution System Interconnection with the grid system Intermittent RE Resources Priority ( must ) dispatch Off grid RE Development Mandated minimum percentage of RE generation Eligible for RE Certificates 5

6 Baggase Philippine Renewable Energy Resources Coconut Rice Residues Ocean Tidal Micro-Hydro 6

7 Ocean Wave Wind Solar Ocean Thermal BIGSHOW Renewable Energy Options in the Philippines Bio mass Geothermal Solar (PV, Thermal) Hydro Ocean Wind 7

8 Solar PV Power Plant Solar Photo-Voltaic Power System Silicon Solar Modules and Balance of System components make up a electric power plant Cagayan Electric Power and Light Company Cagayan de Oro, Philippines Solar Panels by Sharp Corporation Cagayan Electric Power and Light Company 1MWp Solar Plant $5.1M Stocks for new Solar Panels from Sharp Corporation, Japan Capacity: 33 MW ( MW) Height of hub : 70 m Cost = US$ 47.6 M Horizontal Wind Turbine Three blade system extracts kinetic energy from moving air Courtesy of DOE Northwind Wind Power Project in Bangui Bay Ilocos Norte 8

9 Northwind Wind Power Project in Bangui Bay Ilocos Norte 1Kw Horizontal Wind Turbine by Sibol ng Agham at Teknolohiya (SIBAT) Wind System Layout Sibat 24 Volt, 12 Battery Bank Power House Power House Metering Sibat Sibat 9

10 May Visit Hydro Power Plant Water head potential is converted to kinetic energy of the the water. The energy of moving water is subsequently converted to electric power in rotary electron mechanical converters. Maria Cristina Falls Hydro Electric Power Plant 98 Meter falls and Hydro Power Plant Agus VI is operated by the National Power Corporation and was commissioned on May 31, MW Hydro Generator Agus 6 Hydro Electric Plant : 4 x 55 MW Generators 10

11 Geothermal Pipelines Geo-Thermal (Hot Rock or Hot Water) Power Systems Hot water is taken (or pumped onto hot rock bed) to re-boil closed loop steam for electric power Photo Courtesy of DOE Power Plant Supplied by Toshiba Tiwi, Albay Geothermal Power Plant Tiwi Geothermal Plant, Albay Courtesy of DOE Bio Mass Wood Residues: Saw Dust Wood Chips Wood Waste: Pallets Forrest Trimmings Agricultural Residues Corn Stower Sugarcane Baggase Rice Hulls Animal Waste Energy Crops: Hybrid Poplar Switchgrass Willow 11

12 1MW La-Suerte Rice Hull Cogeneration Plant Bio mass Rice Hull Power Plant, San Manuel Isabela Photo Courtesy of DOE Phil Bio Project Magallanes, Makati Municipal waste is collected and deposited in the Covered in Ground Anaerobic Reactor (CIGAR) Digester- Bio-Gas- Generation Flow Ocean Wave Motion Power Generation Up and down wave motion compresses air, which turns rectifying turbine Conclusion The NREP seeks to increase the RE based capacity of the country to an estimated 15,304 MW by the year 2030 The NREP is intended to ensure that the policies, mechanisms and rules mandated by R.A are put into action. 12

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