Energy related studies

HOMER Market Insights: Phillippines Executive Summary

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PHILIPPINES RENEWABLE ENERGY OUTLOOK <s3.amazonaws.com/homerenergy-s3-ue1-p-public/mir_executive_summaries/HOMER_MIR_Executive_Summary%20%28Philippines_June2018%29.pdf>
OVERVIEW In 2011, the Philippines set a renewable energy target to raise installed generation capacity by 2030 to almost three times its 2010 level. This was established in the National Renewable Energy Program (NREP), which serves as the blueprint for the implementation of the Renewable Energy Act of 2008. The Renewable Energy Act of 2008 mandated that the National Grid Corporation of the Philippines (NGCP) provide required facilities for the interconnection of renewable energy-based systems such as solar microgrids. Subsequent feed-in tariff (FIT) rules gave renewable energy projects, such as microgrids, connection priority. Both on-grid and off-grid solar PV-based microgrids are expected to be the largest components of the NREP. There are two types of microgrids in the Philippines: off-grid and grid-connected. Off-grid microgrids are encouraged by the Philippines Department of Energy’s Missionary Energy Development Plan, created in 2012. As part of this plan, off-grid projects are provided with two generation-based support schemes: the universal charge for missionary energy (UCME), which covers the difference between the local cost of generation and the tariff, and the 50% cash incentive for off-grid renewables that covers half of the UCME. 1790 30th St., Suite 100, Boulder, CO 80301 USA | 720-565-4046 | www.homerenergy.com HOMER MARKET INSIGHT REPORT: PHILIPPINES 4 PHILIPPINES RENEWABLE ENERGY OUTLOOK • Between 2015 and 2020, installed electric capacity in the Philippines is expected to increase by 35 percent, growing from 18.8 to 25.4 GW. • Between 2015 and 2020, total electricity generation is expected to increase by 32%, growing from 79 to 104 TWh. That represents a 5.7% average annual growth rate. • Twenty percent of new additions will come from grid-tied solar and wind power projects. Installed solar capacity is expected to grow from 520 to 1,570 MW over the forecast period. Wind power capacity is expected to increase from 340 to 1,430 MW. Both of these sources will exhibit strong growth from a small base. • Traditional renewable power sources such as hydropower, geothermal and biomass will exhibit modest growth. Traditional renewable power additions will account for 10% of new installations between 2015 and 2020, collectively growing by 600 MW. These sources are mature and increasingly constrained.