Opportunities and Challenges of

Bioenergy in the Philippines

Information Day on Bioenergy
January 26, 2016
Frankfurt, Germany

RUBY B. DE GUZMAN
Biomass Energy Management Division
Department of Energy, Philippines

Department of Energy

Outline of Presentation
I. Government Policy

National Renewable Energy Program under

RA 9513
National Biofuels Program under RA 9367

II. Status of Bioenergy Development

Where are we now

Existing and Updates of RE Policies and
Programs

III. Challenges
IV. Way Forward
Department of Energy

R. A. No. 9513: The Renewable Energy Act of 2008

Accelerate the development of the countrys renewable energy

resources by providing fiscal and non-fiscal incentives to private
sector investors and equipment manufacturers / suppliers.
Department of Energy

Government Policy
National Renewable Energy Program
(Under Republic Act 9513: Renewable Energy Act of 2008)
Increase RE-based capacity by 200% within the next 20 years (2011-2030)
Increase non-power contribution of RE to the energy mix by 10 MMBFOE in the
next ten years

Be the number one geothermal energy producer in the world (additional

1,495 MW)

Be the number one wind energy producer in Southeast Asia (up to 2,500
MW)

Double hydro capacity (additional 5,400 MW)

Expand contribution of;

Biomass - 265 MW
Solar - at least 280 MW
Ocean energy at least 10 MW
Department of Energy

NREP ROADMAP (2011-2030)

2012 - Full implementation of RA
9513
2015 - Target additional biomass
capacity of 277 MW is reached
2018 Commissioning of the 1st
OTEC facility
2020 Solar grid parity is attained
2010

Target additional RE capacities are

reached by:
2022 Wind
2023 Hydro
2025 Ocean
2030 Solar
Geothermal

: 2,345 MW
: 5,398 MW
: 75 MW
: 284 MW*
: 1,495 MW

2025 Wind grid parity is attained

IMPLEMENTATION OF NREP SECTORAL SUB-PROGRAMS

2030

20

AAGR = 6.44%

15,151 MW

15,236 MW
15

12,683 MW
5,369 MW

2010

10

7,526 MW

2015

2020

2025

2030

Note: The National Renewable Energy Program (NREP) is currently under review

of NREB to reflect developments on RE sector and the DOEs issuances of new

Installation targets.
Department of Energy

Source: Philippine Department of Energy/NREP

Where are we now?

2010 and 2014 Total Installed Capacity Mix (MW)
2010

2014
Biomass,
0.19%

Total Installed Capacity = 15,881 MW

RE Capacity Share = 5,304.25 MW
% RE Share = 33.4 %

Department of Energy

Biomass, 131,
0.73%

Total Installed Capacity = 17,944 MW

RE Capacity Share = 5,900 MW
% RE Share = 32.88 %
6

Where are we now?

2010 and 2014 Total Generation Mix (GWh)
2010

2014
Biomass
0.04%

Total Generation = 65,795 GWh

RE Generation Share = 17,830.4 GWh
% RE Share= 27.1%

Department of Energy

Biomass
0.25%

Total Generation = 77,261 GWh

RE Generation Share = 19,809.7 GWh
% RE Share= 25.64 %

Summary of Bioenergy Projects

(as of December 2015)
2009

2010

2011

2012

2013

2014

2015

Total

BREOC
No. of Projects
Potential

11.2MWe

Installed

13

83.48MWe 95.82MWe 21.75MWe

3.6MWe

54.73MWe 83.23MWe 19.25MWe

16

59

94.07MWe,
96.4MWe 86.8MWe 150MT/day RDF

489.52MWe,
200MT/day RDF

81MWe,
5.6MWth,
300MT/day RDF

50MT/day RDF

241.81MWe,
5.6MWth,
50MT/day RDF

28

3.0MWe

0.624MWe

3.92MWe

12.5MWe

164.18MWe,
59MWth

Own-use
No. of Projects

12

Potential
Installed

Total

0.30MWe
45MWth

126.72MWe,
2MWth

14.8MWe, 264.93MWe,
45MWth
2MWth

Department of Energy

12MWe,
12MWth

0.56MWe

191MWe,
41.86MWe
12MWth

12.4MWe

189.8MWe,
107.194MWe,
5.6MWth, 89.8MWe
200MT/day RDF
300MT/day RDF

Bioenergy Power Plants/Projects

12 MW Rice-Husk Power Plant (Phase 1) - SJCIPC

12 MW Rice-Husk Power Plant Project - GIFT

8.8 MW Biogas Power Plant Project Aseagas Corporation

Department of Energy

Bioenergy Power Plants/Projects

HPCo
2MW Biogas-FiredSCBPI
Power Plant Project Asian Carbon Neutral Power
Corporation

30MW Bagasse-Fired Cogeneration Power Plant Universal Robina Corporation

Department of Energy

10

Feed-In-Tariff (FIT) System

BIOMASS FIT MONITORING

Total Approved Capacity

Installation Target

Balance

Department of Energy

94.251 MW
250 MW

155.749 MW

11

2016 Projected FIT Capacity Addition

Total Approved Capacity

94.251 MW

Capacity Addition

24.367 MW

Installation Target

250 MW

Balance

Department of Energy

131.382 MW

12

Biomass Sector Roadmap, 2011-2030

Department of Energy

13

RA 9367: Biofuels Act of 2006

To achieve energy independence and fuel diversification while meeting environmental
challenges through the utilization of agricultural-based feedstocks

Potential Diesel Displacement

140 million liters per year for B2

Potential Gasoline Displacement

400 million liters per year for E10

Department of Energy

Targeted Biofuels Blend, 2011-2030

B2 to
B5
E20/E85

*National Biofuels Program 2013-2030

15
Department of Energy

Biodiesel Supply-Demand Outlook,

2016-2030
(in million liters)
Year

Diesel Demand

Biodiesel Blends
(Target)

Supply Requirement

2016

7,176.41

5%

358.82

2020

7,923.37

10%

792.34

2025

8,693.73

20%

1,738.75

2030

9,030.68

20%

1,806.14

16
Department of Energy

Bioethanol Supply-Demand Outlook,

2015-2030
(in million liters)
Year

Gasoline
Demand

Bioethanol Blends
(Target)

Supply Requirement

2015

3,818.61

10%

381.86

2020

4,328.87

20%

865.77

2025

4,712.28

20%

942.46

2030

5,084.05

20%/85%

1,016.81

17
Department of Energy

Biofuels Program
Biodiesel
11 Biodiesel Plants with a total capacity of 584.69ML/year
1 Pending project with a potential capacity of 150ML/year
Bioethanol
10 Bioethanol Plants with a total capacity of 282.4 ML/year
1 On-going project with a potential capacity of 40 ML/year
1 Pending project with a potential capacity of 45 ML/year

Department of Energy

18

Activities Under the Biofuels Program

Actual On-Road Test For Higher Biodiesel Blend
1. Formulation of test protocol with DOST-PCIEERD, PCA, TUP, UPNCTS.
2. Actual test covering 2,000km for baseline data gathering.

Approved New Projects for Implementation under a MOA

1. Romblon Electric Cooperative (ROMELCO) 18kW Sitio Bagong
Silang Biomass Gasifier Project in Brgy. Alad, Romblon, Romblon
2. Mariano Marcos State University Establishment of a
Community-Based Bioethanol Industry and Continued R&D on the
Feasibility of Hydrous Bioethanol as Biofuel Blend
3. University of the Philippines Foundation Inc. Economic Impact
Study on Increasing the Biodiesel Blend to 5% (B5)

Department of Energy

19

Monitoring of Biofuels Production Plants

TEI
Department of Energy

20

Monitoring of Biofuels Production Plant

CBPI
Department of Energy

21

Existing and Updates on RE Policy Mechanisms

Renewable Portfolio Standard (RPS)
Mandatory (percentage) utilization of RE generation
system in on-grid systems
For Department of Energys finalization

Feed-in-Tariff (FIT)
Priority connection to the grid
Priority purchase and transmission of and payment for
by grid system operators
Fixed tariff for 20 years
To be applied for generation utilized in complying with
RPS
Department of Energy

22

Existing and Updates on RE Policy Mechanisms

Feed-in-Tariff (FIT) issued Regulations
The FIT Rules was promulgated on August 12, 2010.
The ERC approved the FIT Rates on July 27, 2012.
ERC issued FIT Allowance (FIT-ALL) Payment and Collection
Guidelines
FIT-ALL rate at Php 0.0406/kWh
ERC issued new FIT Rates for Solar (Php 8.69/Kwh) and
Wind (Php 7.40/Kwh)

Department of Energy

23

Existing and Updates on RE Policy Mechanisms

Feed-in-Tariff (FIT) issued Regulations
A template was prescribed by ERC on Resolution No. 18,
Series of 2014 to adapt the Renewable Energy Payment
Agreement (REPA) Template and the Renewable Energy
Supply Agreement (RESA) Template.
DOE issued the Guidelines for the Selection Process of
Renewable Energy Projects Under Feed-In Tariff System
and the Award of Certificate for Feed-In Tariff Eligibility
(Department Circular No. 2013-05-0009)

Department of Energy

24

Existing and Updates on RE Policy Mechanisms

Feed-in-Tariff (FIT) Rates
RE Technology

Approved Rates
(PHP/kWh)
5.90

Installation Target (MW)

Biomass

6.63

250

Wind

8.53*

(with initial target of 200) 400**

Solar

8.69 *

(with initial target of 50) 500**

Run-of-River Hydro

250

* Feed in Tariff (FIT) rates for solar was revised in April 2015 (Resolution No. 6, Series of
2015) from Php 9.68 to 8.69/kWh covering additional target of 450 MW and the second FIT
rate for wind energy was issued by the ERC at Php 7.40/kWh covering additional target of
200MW under ERC Resolution No. 14, series of 2015.
** Amended targets for wind energy and solar power up to March 15, 2016.

Department of Energy

25

Feed-In Tariff Monitoring Board (as of December 2015)

Resource

For Nomination
(2016)

With Certificate of
Confirmation of
Commerciality

With Certificate of
Endorsement to ERC

No. of
Projects

Capacity
(MW)

No. of
Projects

Capacity
(MW)

No. of
Projects

Capacity
(MW)

24.367

24.367

14

94.251

Biomass

Department of Energy

Existing and Updates on RE Policy Mechanisms

Net-Metering Rules and Interconnection Standards
Connection / sale of customers RE generation to the
grid
The ERC approved the Net Metering Rules last May 27,
2013
Conducted nationwide IEC for LGUs, DUs, consumers
Monitored capacity addition were 1.605 MWp
Renewable Portfolio Standards (RPS) for Missionary Areas
Mandated minimum percentage of RE generation
For NREBs finalization
Green Energy Option Program
End-users option to purchase electricity from RE
facilities (open access)
For Department of Energys finalization
Department of Energy

27

Biomass Resource Assessment

Available Feedstock
Rice hull, Bagasse, Corn trash, Sugar cane trash,
Forestry/Wood processing wastes, Animal wastes, MSW
USAID Biomass Resource Inventory Result
4,446.54 MWe Potential Power Generation Capacity net
of Competing uses
17.26 Million tCO2 Potential GHG emission reduction

Department of Energy

Renewable Energy Targets, 2011-2030

Sector

Short Term

Medium Term

Long Term

2011-2015

2016-2020

2021-2030

Geothermal

220 MW

1,100 MW

175 MW

Hydropower

341.3 MW

3,161 MW

1,891.8 MW

5,394.1 MW

Biomass

276.7 MW

276.7 MW

Biofuels

DC on E10 in 2011
Mandatory E10 to
all Gasoline by 2012
PNS for B5 by 2014
DC on B5 by 2015
Mandatory B5 to all
Diesel by 2015

PNS for B20 & E85 by

2020
DC on B10 and E20
by 2020

Wind

200 MW

700 MW

1,445 MW

Solar

50 MW

100 MW

200 MW

35.5

35

Ocean Power

Total
1,495 MW

DC on B20 and
E85 by 2025

2,345 MW
350 MW
(Aspirational
target 1,528
MW)
70.5

Note: RE Targets under review of NREB to reflect developments on RE sector and the DOEs issuances of new Installation targets

Total

Department of Energy

1,088 MW

5,096 MW

3,746.80 MW

9,931.3 MW

29

Challenges
Feedstock supply, sustainability and cost
Validation of emerging biomass/biofuels
feedstock and its related utilization
technologies
Insufficient local bioethanol supply
Implementation of B5 by 2016

Department of Energy

30

The Way Forward

Full implementation of the Renewable Energy Act
Finalization / Approval of Guidelines on other RE Policy
Mechanisms (Renewable Portfolio Standard (RPS), Green
Energy Option, etc.)
Establish Energy Investment Coordinating Center and
Linkages with other Government Regulatory Agencies
Resource Inventory and Establishment of RE Database
Capacity Building / Information, Education and
Communication Campaigns
More Investment Missions / Business Meetings

Department of Energy

31

Thank you ! ! !
www.doe.gov.ph
ruby.deguzman@doe.gov.ph

Department of Energy