2nd OECD-DOE Clean Energy Finance and Investment Consultation Workshop: Unlocking finance and investment for clean energy in the Philippines, 24-25 November 2022, Bohol, Philippines

1. National Renewable Energy
Program 2020-2040 and
Sector Updates
Assistant Director Ruby B. De Guzman
Renewable Energy Management Bureau
Department of Energy
24 November 2022
2nd Clean Energy Finance and Investment Mobilization Program
Panglao, Bohol

2. RE Sector Updates
NREP 2020-2040
Contents
RE Profile

3. Renewable Energy Profile

4. Department of Energy
Empowering the Filipinos
Coal 44%
Oil 14%
Natural Gas 13%
RE 29%
Installed Capacity - 26,882 MW
58%
2%
18%
22%
Coal Oil Natural Gas RE
Gross Generation - 106,115 GWh
In 2021, RE comprised 29% of the installed capacity and 22% of the gross
power generation of the country.
2021 Power Statistics, Philippines

5. Department of Energy
Empowering the Filipinos
Installed Capacity - 7,914 MW
(29%)
Gross Generation – 23,771 GWh
(22%)
2% Biomass 1%
7% Geothermal 10%
5% Solar 1%
14% Hydro 9%
2% Wind 1%
*Due to rounding, totals may not correspond to the sum of the separate figures
2021 Power Statistics, Philippines

6. Department of Energy
Empowering the Filipinos
2,699.79 MW
of additional RE Installations
since the effectivity of RE Act in 2009
PhP 262.02 B
estimated cost of investments
184,055
estimated Green Jobs Created
25.973 Million tons
estimated GHG Emission Reduction
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Wind - - - - - 303.90 90.00 16.00
Hydropower 10.40 57.30 4.20 11.80 14.78 17.96 10.53 8.50 78.92 49.79 0.30 3.46
Solar - - - - - 22.00 142.87 734.72 25.20 4.20 29.55 114.27 313.71
Geothermal - - - - - 50.00 10.00 12.00 10.50
Biomass 37.19 49.30 23.00 19.81 0.88 12.00 109.50 40.80 19.12 41.74 193.57 6.00
-
100.00
200.00
300.00
400.00
500.00
600.00
700.00
800.00
900.00
MW
RE Capacity Addition and Highlights, 2009-2021

7. Department of Energy
Empowering the Filipinos As of 30 September 2022
0 5000 10000 15000 20000 25000 30000
Hydropower
Ocean Energy
Geothermal
Wind
Solar
Biomass
Installed Potential
81 Projects
334 Projects
126 Projects
36 Projects
8 Projects
431 Projects
As of 30 September 2022, a total of 1016 projects were
awarded with RE Contracts with an installed capacity of
5,471.04 MW and potential of 64,817.45 MW.
MW
Awarded RE Contracts

8. NREP 2020-2040

9. Department of Energy
Empowering the Filipinos
NREP sets a target of at least
35% RE Share
in the power generation mix by 2030
NREP aspires to increase the
RE Share to 50%
by 2040
National Renewable Energy
Program 2020-2040

10. Overarching
Goals

11. Department of Energy
Empowering the Filipinos
RE Outlook, 2021-2040
0
20,000
40,000
60,000
80,000
100,000
120,000
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
MW
Year
Existing Committed New Natural Gas
New Biomass New Geothermal New Solar
New Hydro New Wind Peak Demand
To reach the RE target, a total of 52,826 MW additional RE capacity is needed by 2040, which is almost
seven times than the current level at 7,914 MW.
Particulars,
in MW
2021 2025 2030 2035 2040
New Natural
Gas
0 759 2,259 8,159 18,859
New Biomass 0 120 120 360 364
New
Geothermal
0 0 850 1,900 2,500
New Solar 0 2,660 5,585 8,910 27,162
New Hydro 0 0 0 2,200 6,150
New Wind 0 0 6,450 13,050 16,650
Committed
Capacity
2,066 7,512 7,592 7,592 7,592
Existing
Capacity
22,954 22,954 22,954 22,954 22,954
Peak Demand 16,482 21,019 29,128 40,209 54,655

12. Department of Energy
Empowering the Filipinos
RE Outlook, 2021-2040
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
GWh
Year
Coal Natural Gas Oil Biomass Geothermal Solar Hydro Wind
Plant Type
2030 2040
Power
Generation
in Gwh
Percent
Share
Power
Generation
in Gwh
Percent
Share
Coal 84,306 45 84,491 24
Oil-based 308 0 365 0
Natural Gas 36,618 20 89,866 26
Renewable Energy 65,316 35 174,783 50
Biomass 1,455 1 2,353 1
Geothermal 23,293 12 35,321 10
Solar 10,436 6 43,686 12
Hydro 12,884 7 49,697 14
Wind 17,250 9 43,726 13
Total 186,547 100 349,505 100
The resulting power generation mix will reach the 35% and 50% RE share targets by 2030 and 2040,
respectively.

14. Department of Energy
Empowering the Filipinos
4
PREFERENTIAL DISPATCH OF RE
All RE generating units are given
preference in the Wholesale Electricity
Spot Market dispatch schedule to ensure
its maximum output injection in the grid.
5
RENEWABLE PORTFOLIO
STANDARDS (RPS) – GRID AND OFF-
GRID
Requires all load-serving entitities to source
or produce a specified portion of their
supply from eligible RE facilities
RE MARKET (REM)
1 7
ENHANCED NET-METERING
PROGRAM
Allows end-users to generate electricity
from RE-based systems up to 100 kW for
own use and sell their excess to the grid
3
GREEN ENERGY OPTION PROGRAM (GEOP)
Provides end-users the option to choose RE
resources as their source of energy
2
OMNIBUS GUIDELINES FOR RE
CONTRACTS
Aims to harmonize and enhance existing
guidelines governing the application and
awarding of RE Contracts
8
9
Serves as the venue for the transparent and
fair trading of RE Certificates
10
GREEN ENERGY AUCTION PROGRAM
(GEAP)
Intends to provide additional market for RE
through a competitive electronic bidding of
RE capacities
RE TRUST FUND
Pursuant to Section 28 of the RE Act, the
RETF was established to promote the
development and greater utilization of RE
RE RESOURCE DEVELOPMENT
Geothermal Energy, Offshore Wind, Waste-to-
Energy, Ocean and Tidal Energy, Expanded
Rooftop Solar Program
6
Involve the utilization of RE for activities
that enhance income and livelihood, and
deliver social services, particularly in rural
and off-grid areas.
PRODUCTIVE USES OF RE (PURE)
Major RE Policies and Programs

15. RE Sector Updates

16. Department of Energy
Empowering the Filipinos
Renewable Portfolio Standards
On-Grid
▪ The RPS mandates load serving entities to source a
minimum percentage of RE in their respective power supply
portfolios.
▪ Pursuant to DC2022-09-0030, the minimum annual RE
percentage increment was increased from 1% to 2.52%
starting year 2023
Off-Grid
▪ Focus group discussions and a writeshop regarding the
Revised RPS Off-Grid Rules were completed last May 2022
and 27 October 2022, respectively.
▪ The level of compliance will depend on the optimal power
supply mix of the island and/or off-grid area.

17. Department of Energy
Empowering the Filipinos
Easing Foreign
Ownership Limit in RE
Investments
Foreign ownership restrictions that hamper the flow
of investments in the RE sector may now be
relaxed, following the legal opinion provided by the
Department of Justice that exploration,
development, and utilization of inexhaustible RE
source are not subject to the 60:40 foreign equity
limitation, as provided under Section 2, Article XII of
the Constitution.
On 15 November 2022, the DOE issued DC2022-
11-0034 entitled “Prescribing Amendments to
Section 19 of Department Circular No. DC2009-
05-0008 Titled, Rules and Regulations
Implementing Republic Act No. 9513, Otherwise
Known as “The Renewable Energy Act of 2008””.

18. Department of Energy
Empowering the Filipinos
Preferential Dispatch of All RE Resources in the
Wholesale Electricity Spot Market (WESM)
Under DC2022-10-0031, signed on October 5, 2022, all qualified and
registered generating units utilizing RE sources may now enjoy the
option of preferential dispatch in the WESM.
• “Must Dispatch” includes intermittent or variable RE such as wind, solar,
run-off-river hydro, and ocean energy.
• “Priority Dispatch” means giving the option or preference to biomass,
geothermal, and impounding hydro plants to enjoy preferential dispatch in
the WESM, taking into consideration their contractual obligations with their
respective customers.

19. Department of Energy
Empowering the Filipinos
RE Resource Development
Geothermal Energy
The government may allow 100% foreign
ownership / participation for large-scale projects.
A study regarding derisking of geothermal energy
investments is ongoing.
Offshore Wind
The Philippine Offshore Wind Roadmap was published in
April 2022. In line with this, the Philippine Offshore Wind
– Joint Industry Platform was established.
Waste-to-Energy
On 17 February 2022, the DOE issued DC No. DC2022-02-
0002 entitled “Prescribing the Policies and Programs to
Promote and Enhance the Development of Biomass Waste-
to-Energy (WTE) Facilities”. An assessment of WTE potential
in the country is currently ongoing.
Ocean/Tidal Energy
The report entitled “The Philippines Marine Renewables:
Sustainable Energy from Ocean Spaces and Resources”
was completed in December 2021. In line with this, the
Philippine Marine Energy Roadmap shall be developed.
Expanded Solar Rooftop Program
The ERSP will provide opportunities to end-users
and solar PV developers and installers to utilize
available rooftop spaces for solar energy
production.

20. Geothermal
Energy
Waste-to-
Energy
Resource-Specific Programs
The government may allow 100% foreign ownership / participation for
large-scale projects, provided that:
▪ Investment cost is at least USD 50M; and
▪ Project is covered by Financial and Technical Assistance Agreement, duly
approved by the President of the Philippines
Ongoing study regarding derisking of geothermal energy investments.
▪ On 17 February 2022, the DOE issued DC No. DC2022-02-0002
entitled “Prescribing the Policies and Programs to Promote and
Enhance the Development of Biomass Waste-to-Energy (WTE)
Facilities”
▪ Ongoing assessment of WTE potential
▪ The DOE will conduct a WTE Forum for Luzon, Visayas, and Mindanao
in December 2022.

21. Resource-Specific Programs
▪ The ERSP will provide opportunities to end-users and solar PV
developers and installers to utilize available rooftop spaces for solar
energy production.
▪ The proposed program is expected to introduce various business
models and innovative mechanisms to further expand solar PV use in
the country.
▪ In line with this, the proposed Department Circular entitled “Prescribing
The Policy And General Framework On Expanded Rooftop Solar
Program In The Philippines” is targeted to be approved on 4th Quarter
of 2022.
Expanded
Rooftop Solar
Program

22. Resource-Specific Programs
▪ With assistance from the Energy Transition Partnership, the report
entitled “The Philippines Marine Renewables: Sustainable Energy from
Ocean Spaces and Resources” was completed in December 2021. A
Stocktake and Options Report is intended to support the DOE in
developing the country’s potential marine resources.
▪ The Philippine Marine Energy Roadmap shall be developed.
Potential Ocean Energy Sites in the
Philippines
Ocean / Tidal
Offshore Wind
▪ Published the Philippine Offshore Wind Roadmap on April 2022
through the support of World Bank Group and funding from Energy
Sector Management Assistance Program
▪ Completed webinar series for government and private sector under the
ASEAN-Low Carbon Energy Programme
▪ Established the Philippine Offshore Wind – Joint Industry Platform
through the support of Carbon Trust

23. Resource-Specific Programs
Offshore Wind
▪ On 07 November 2022, the DOE
issued an advisory to RE developers
and stakeholders regarding the
enhancement of policies and
guidelines for the development of
offshore wind projects.
▪ The agency is currently crafting an
Executive Order to strengthen and
rationalize the regulatory framework for
the immediate development of
offshore wind energy given the
tremendous interest from foreign and
local investors.

24. Department of Energy
Empowering the Filipinos
Upcoming Issuances
✓ 2nd Round of the Green Energy
Auction
✓ RE Market Commercial Operation
✓ RE Trust Fund Operations Manual

25. Thank You
Rizal Drive Corner 34th St.
Bonifacio Global City
Taguig City
www.doe.gov.ph
(632) 479 2900
doe.gov.ph
doe_ph