National Renewable Energy Program
The development and optimal use of the country's renewable energy resources is central to the Philippine's sustainable energy agenda. Renewable energy is an essential part of the country's low emissions development strategy and is vital to addressing the challenges of climate change, energy security, and access to energy.
The National Renewable Energy Program (NREP) outlines the policy framework enshrined in Republic Act 9513. It sets the strategic building blocks that will help the country achieve the goals set forth in the Renewable Energy Act of 2008. The NREP signals the country's big leap from fragmented and halting RE initiatives into a focused and sustained drive towards energy security and improved access to clean energy.
The NREP sets out indicative interim targets for the delivery of renewable energy within the timeframe of 2011 to 2030. Meeting the massive targets upto 2020 will be challenging as detailed planning, financing, and building of renewable energy infrastructure will have to be undertaken at a scale, and within a time frame, never done before.
The NREP lays down the foundation for developing the country's renewable energy resources, stimulating investments in the RE sector, developing technologies, and providing the impetus for national and local renewable energy planning that will help identify the most feasible and least-cost renewable energy development options.
The NREP proceeds from the assumption that certain activities can be taken right away; while others will take time to implement. As a national program, it will require periodic review to ensure it conforms to the policy objectives set out in RA 9513.
Beyond the scale, however, are fundamental issues of transmission and grid integration for intermittent RE resources. Social and economic impacts cannot be overlooked. These are issues that will be kept under close review. Action shall be taken toward meeting the challenges of balancing the country's energy security needs and the over-riding goal of providing clean, affordable, and sustainable energy for all.
The NREP promises a continuing and well-coordinated effort to drive development in the RE industry, promote technology advancements, and achieve economies of scale. It provides the basis for national and local renewable energy planning that will identify specific actions and times upon which outcomes will be generated. Such plans will factor in cross-cutting issues and essential interventions in the areas of transmission development and integration, energy efficiency, off-grid electrification, climate change, technology transfer and development, local capacity building, and partnerships.
Given the dynamic nature of the country's energy sector, the NREP is a living document. Forecasts and targets will be updated periodically as key developments in the energy sector emerge. Programs will be reviewed. Deployment of RE projects will be monitored to ensure that stakeholders make good on their promise to deliver. Above all, partnerships will be enhanced to ensure a country-wide approach in developing the country's renewable energy resources.
In accordance with the law, the Department of Energy (DOE) led the formulation of this National Renewable Energy Program (NREP), in consultation with its stakeholders.
RE has long been a major contributor to the country's primary energy supply mix. In 2010, the country's total primary energy supply reached 40.7 million tons of oil equivalent (MTOE). Of this amount, 23.4 MTOE was sourced locally, setting the energy self sufficiency level at 57.5%. RE resources contributed the highest share (68.1%) of the indigenous energy supply mix. Among the renewables, geothermal provided the biggest share of 53.2% of the RE supply mix. This is followed by biomass at 33.3% and hydro at 12.1%.
The NREP seeks to increase the RE-based capacity
To realize the country's RE goals, the NREP
1.Institutionalizes a comprehensive approach to address the challenges and gaps that prevent and/or delay wider application of RE technologies in a sustainable manner, and
2. outlines the action plans necessary to facilitate and encourage greater private sector investments in RE development.
On a per technology basis, the NREP intends to:
increase geothermal capacity by 75.0 percent;
Increase hydropower capacity by 160 percent;
Deliver additional 277 MW biomass power capacities;
Attain wind power grid parity with the commissioning of 2,345 MW additional capacities;
Mainstream an additional 284 MW solar power capacities and work towards achieving the aspirational target of 1,528 MW;
Develop the 1st ocean energy facility for the country.
The NREP is initially focused towards the addition of RE-based capacity for power generation. The program for non-power applications shall be incorporated subsequently.
The framework for the NREP emanated from individual work programs (i.e., the Sectoral Sub-programs) of each of the resources covered under RA 9513, namely: geothermal, hydropower, biomass, wind, Solar, and ocean. As may be decided later, other emerging RE technologies shall be included depending on their status of development and utilization.
Each sectoral sub-program follows a roadmap which serves as a guide for the achievement of the market penetration targets of a particular RE resource in the energy industry. It indicates the milestones over the 20-year planning period, the realization of which depends on the implementation of the following activities
RE Industry Services which includes assistance and advisory services to facilitate private sector investments in RE;
Resource Development to intensify the harnessing of the country's huge RE resource potential;
Research, Development and Demonstration (R, D & D) to determine the viability of adapting certain RE systems, technologies or processes in the Philippine setting, particularly in areas where there is no or limited local experience;
RE Technology Support which is geared towards the improvement of the quality, performance and cost of local RE systems for greater consumer protection and their competitiveness with the conventional forms of energy.
The NREP is intended to ensure that the policies,
The National Renewable Energy Program (NREP) Development Framework
|RE Industry Service||Resource Development||R&D and Demonstration||RE Technology Support|
|-Review of applications; endorsement for registration||-RE System / Technology / process-adoption or development||-Standards Development|
|-Market development services||-Market studies||- Demonstration projects||-Quality Performance improvement|
|-Advisory services to RE Developers (Technical, Business, Matching, Etc.)|
|-Monitoring of RE Contracts||*for manufacturers, engineering service provider|
|Policy and Program Support Component|
The specific projects and activities in each sector vary depending on the challenges and gaps facing the sector, and the needs of the stakeholder groups being served.
The sets of activities that cut across all the RE sectors are grouped into the Policy and Program Support Component. This involves common activities which require a coordinative and integrated
approach to implementation, to include:
- Policy Support which mainly involves the formulation, implementation and monitoring of the mechanisms, rules and regulations prescribed by the RE Law; and
- Program Support covering common support activities to ensure the smooth implementation of the NREP, e.g., establishment of the RE one-stop-shop, Integrated IEC Plan, RE Information Exchange and M&E system. The consolidated RERoadmap summarizes the milestones and capacity additions envisioned in the respective Sectoral SubPrograms described above.
Projected Milestone, 2011-2030
|Sector||Target indicative capacity addition achieved by||Others|
|Geothermal||2027||Low-Enthalpy Geothermal Resource Assessment completed by 2015|
|Hydro||2023||Construction of Sea Water Pumped Storage Demo Facility by 2030|
|Biomass||2015||Mandatory E10 blend for all gasoline vehicles by 2012|
|Wind||2022||Grid parity by 2025|
|Solar||2030||Smart Grid and Concentrated Solar Thermal Power Demo Completed by 2015: Grid parity 2020|
|Ocean||2025||1st Ocean Energy Facility Operational by 2018|
|Sector||Installed Capacity, (MW) as of 2010||Target Capacity Addition by||Total Capacity Addition (MW) 2011-2030||Total Installed Capacity by 2030|
The entry of the above-cited RE-based capacities is highly dependent on the successful implementation of the NREP as well as the policy and incentive mechanisms in the RE Law, Particular attention shall be given to the timely conduct of grid impact studies required for all facilities connecting to the grid.
It must be emphasized that the aggressive development of RE resources shall be balanced with the need to provide adequate, reliable and high quality power. It bears emphasis that while efforts to facilitate RE entry into the grid shall continue to be intensified, the stability of the grid shall be ensured as well. Hence, innovative mechanisms to assist the concerned industry participant, as may be necessary, may be developed as the NREP progresses.
Furthermore, REprojects in off-grid and SPUGormissionary areas, will be supported through effective coordination among DOE units concerned and its attached agencies (i.e., NPC-SPUG, NEA), as well as the electric cooperatives. The RE project developers' work programs shall be aligned and harmonized with the Missionary Electrification Development Plan. Compliance with relevant procedures and guidelines by Qualified. Third Parties or New Power Providers shall be ensured.
The NREP is aligned with the government thrusts to:
increase the country's energy self-sufficiency;
ensure energy security; and
promote sustainable development.
It is anchored on key DOE strategies, including:
to encourage greater private sector investments and participation through market-based incentives; and
to establish responsive market mechanisms for RE-based power generation. Additionally, it is guided by DOE's new Energy Reform Agenda, with its over-arching strategy of good governance and motto for leveling the playing field,
The smooth and successful implementation of the NREP and its accompanying sectoral sub-programs hinges on the commitment of the DOE and its attached agencies to support the policies enunciated by the RE Law, The cooperation of the RE stakeholders is critical and indispensable, To sustain this cooperation and support, the following strategies shall be carried out:
streamlining of the registration process;
transparency and due diligence in oper competition and bidding;
effective and efficient monitoring of contracts;
effective and timely delivery of services;
conduct of an integrated and aggressive information campaign, and
building of private-public partnerships, when feasible
Finally, the key word for the NREP is sustainability. A workable M & E mechanism will be developed to ensure that the gains envisioned by the RE Law are met and sustained. In the end, future generations of Filipinos shall reap benefits from a more sustainable environment through the long-term emission reduction impacts of RE, Socio-economic benefits will also be realized, not just through hard currency savings in avoided fossil fuel imports, but also on account of employment opportunities that will be generated by increased economic activities with more intensive private sector investments into the sector
Laws and Issuances
Approved on December 16, 2008: An Act promoting the development, utilization and commercialization of renewable energy resources and for other purposes
Approved on January 12, 2007: An act to direct the use of biofuels, establishing for this purpose the biofuel program, appropriating funds therefor, and for other purposes