Power Sector Transition in Negros

From Global Energy Monitor

Introduction

Map of Negros Island Region, as published in the Census of Agriculture and Fisheries. In 2023, the Negros Island Region was recreated and includes both provinces on Negros, as well as Siquijor.

Situated between Cebu and Panay, Negros is the fourth largest island in the Philippines.[1] The island contains two provinces: Negros Occidental in the Northwest, and Negros Oriental in the Southeast.[2] In total, the provinces had a population of 4,056,162 in 2020.[3] While Negros Island is considered the clean energy capital of the country[4] due to its ample resource potential and installed capacity, most of this power is exported off-island.[2] An estimated 73-80% of energy supplied to consumers on Negros comes from coal and diesel sources outside the island.[2]

A report published by the Center for Energy, Ecology, and Development highlights four major challenges in Negros' energy transition: 1) grid integration of Negros' solar overgeneration, 2) significant pipeline of projects (1,665 MW) which may lack adequate transmission capacity, 3) the continued threat of coal, and 4) the social and environmental impacts wind, solar, hydroelectric, geothermal, and biomass projects.[2]

Current System Description

Current Power Capacity Mix

Across the Philippines, the total national energy capacity is 23,000 MW, with coal and natural gas making up 47% and 22% of installed capacity, respectively.[5] As of 2021, 258 MW of biomass, 1,918.19 MW of geothermal, and 896 MW of hydropower had been installed nationally.[6]

According to Global Energy Monitor, Negros has 341 MW of solar and 154 MW of geothermal energy in operation, while an additional 354 MW of solar and 1,650 MW of onshore wind in the project development pipeline.[7][8][9]

While Negros generates significant renewable energy, most power delivered to Negrosanons is generated in Cebu and Iloilo by burning coal.[10]

Negros Island 2020 installed generating capacity mix, in megawatts, as detailed in the REPower Negros report.
Negros Island 2020 contracted capacity mix, in megawatts, as detailed in the REPower Negros report.


















Prospective Power Capacity

The Department of Energy created a geothermal roadmap, which outlines pathways to 1,490 MW of additional geothermal energy production nationally by 2030.[6] Continued geothermal development is limited by the fact that most known reserves have already been tapped, and further exploration is required.[6]

Future large-scale solar capacity is projected to be 1,000 MW by 2029, though distributed systems and microgrids will help boost electrification in rural areas of the country.[6]

The Department of Energy has awarded 65 contracts totaling 490 MW of wind energy, the majority of which is still in pre-development.[6]

Renewables in Negros

Renewable Targets

The Renewable Energy Act of 2008 established the national goal of installing 15,304 MW of renewable energy by 2030.[6] This legislation also established the Green Energy Option Program (GEOP), which allows commercial and industrial customers to receive 100% clean energy.[11] While the GEOP has faced obstacles to its implementation, in 2021, Toyota Philippines and AC Energy published a joint statement supporting the program and calling for its full implementation.[11]

In the 2020-2040 Energy Plan, the Department of Energy outlines several policies and programs aimed at transitioning the Philippines’ power sector: 1) fast-track the approval process for generating facilities and associated infrastructure; 2) implement smart grid programs; 3) continue to evaluate and implement necessary amendments from the Electric Power Industry Reform Act of 2001; 4) continuously improve power development planning; 5) implement automated reporting requirements; and 6) establish an integrated power sector database.[12] By 2040, the Department of Energy aims to achieve 100% electrification of households.[12]

The Department of Energy also established the Barangay Line Enhancement Program, which is designed to help connect 166 rural barangays powered by distributed solar and micro-hydropower to the grid by 2026.[12]

Major Renewable Projects

As of 2022, Negros Island had 264 MW of solar generation installed, of about 69% of the Visayas Grid's solar capacity.[13]

Operating Renewable Energy Projects on Negros Island, Philippines[7][8][9]
Province Generation Source Project Capacity (MW) Status
Negros Oriental Geothermal Nasulo Geothermal Power Plant 40 Operating
Negros Oriental Geothermal Palinpinon 1 Geothermal Power Plant 112 Operating
Negros Occidental Solar Helios Solar Power Project 132 Operating
Negros Occidental Solar Islasol I Solar Power Project 32 Operating
Negros Occidental Solar Islasol II Solar Power Project 48 Operating
Negros Occidental Solar Sacasun Solar Power Project 59 Operating
Negros Occidental Solar San Carlos Solar Power Project, Phases A&B 22 Operating
Negros Occidental Solar San Carlos Solar Power Project, Phases C&D 23 Operating
Negros Occidental Solar Silay Solar Power Project 25 Operating
Prospective Renewable Energy Projects on Negros Island, Philippines[7][8][9]
Province Generation Source Project Capacity (MW) Status
Negros Oriental Geothermal Dauin Geothermal Power Plant 40 Announced
Negros Occidental Solar Bacolod City Solar Power Project 40 Announced
Negros Occidental Solar Cadiz City (PASI) Solar Power Project 70 Pre-Construction
Negros Occidental Solar Cadiz City Solar Power Project 56 Announced
Negros Occidental Solar La Carlota Solar Power Project 50 Announced
Negros Occidental Solar Nabali-An Solar Power Project 60 Announced
Negros Occidental Solar Victorias Solar Power Project 26 Pre-Construction
Negros Occidental Solar Vista Alegre Solar Power Project 52 Pre-Construction
Negros Occidental Wind Bago City Wind Power Project 150 Pre-Construction
Negros Island (offshore) Wind Guimaras Strait Wind Farm, Phase I 100 Pre-Construction
Negros Island (offshore) Wind Guimaras Strait Wind Farm, Phase II 600 Pre-Construction
Negros Oriental Wind Tanjay Wind Power Project 50 Pre-Construction
Cancelled and Retired Renewable Energy Projects on Negros Island, Philippines[7][8][9]
Project Generation Capacity (MW) Status
Northern Negros Geothermal Power Plant Geothermal 50 Retired
Eb Magalona Solar Farm Solar 30 Cancelled
Don Salvador Wind Farm Onshore Wind 70 Cancelled
San Carlos Wind Energy Project Onshore Wind 30 Cancelled
San Carlos Wind Farm (Philippines) Onshore Wind 80 Cancelled

Potential impacts from renewable expansion

Land availability is a concern for solar developers in the Philippines, given the large area required for many utility-scale projects. Moreover, researchers have flagged that the potentially damaging chemicals present in solar panels may cause environmental damage.[14]

Furthermore, young activists have noted that a Just Energy transition requires reconsideration of norms so we can avoid further environmental degradation due to critical and transmission mineral extraction.[15]

A major challenge that renewables will need to contend with is stranded assets left over from former fossil fuel infrastructure. An estimated $10 billion in stranded coal assets will need to be addressed in the Philippines.[16]

Fossil Fuels in Negros

Fossil Resources and Retirement

The 2020-2040 Philippine Energy Plan estimated that Negros has a coal resource potential of 4.5 million metric tons of coal,[12] though both provinces on the island have committed to becoming coal-free and disallowing any future development in their jurisdictions.[17][18] Both provinces host communities that are active in resisting continued fossil fuel development. For example, the Cadiz City Power Station, Pulupandan Power Station, and San Carlos POwer Station Projects in Negros Occidental have all been cancelled following pushback from locals.[19] Cebu and Iloilo, where Negros gets most of its coal-fired power from, have had 157 MW of coal retired and 1,020 MW of potential coal infrastructure cancelled.[19]

Overview of current fossil fuel impacts

National Impacts

The Centre for Research on Energy and Clean Air estimates that across the Philippines, an average of 630 individuals die from air pollution-related diseases which costs USD$165 million.[20]

Impact of coal's life cycle on the environment and health. Table recreated from one included in a Greenpeace report about the public health impacts of coal in the Philippines.[20]
Coal's life cycle Effects on environment Effects on human health
Coal mining 1. Air Pollution

2. Destruction of local habitat and biodiversity
3. Methane emissions from coal that can contribute to climate change

1. Work-related fatalities and injuries to miners

2. Black lung disease and silicosis among miners due to exposure to coal dust
3. Illnesses due to increased air pollution in the nearby community

Coal washing 1. Contamination of water sources from runoff and waste spills

2. Sludge and slurry ponds
3. Loss and contamination of streams and aquatic life

1. Health impacts of heavy metals from coal slurry

2. Health impacts of water contamination

Coal transportation 1. Air pollution from coal dust released by transport trucks and trains

2. Greenhouse gas emissions from the vehicles

Health impacts due to coal dust inhalation during transport
Coal combustion 1. Release of toxic chemicals such as sulfure dioxide, particulate matter, nitrogen oxides, and others

2. Air pollution
3. Climate change due to power plant emissions
Environmental contamination as a result of heavy metal pollution (mercury, arsenic, and selenium primarily)

Increase prevalence from lung, heart, and brain diseases due to particulate pollution
Waste disposal 1. Water pollution from runoff and fly ash spills

2. Impacts on surrounding ecosystem of coal ash and other waste

Health impacts of contaminants from coal ash and other waste

Local Impacts

Despite the significant renewable generation on the island, Negrosanons' energy primarily comes from fossil fuel sources. As of 2020, approximately 59% of the power contracted by Negros' electric cooperatives is generated from burning coal, while 14% is produced through burning diesel.[2]

Citizens of Negros have successfully fought several fossil fuel projects on the island. In 2021, a coal-fired power plant was successfully stopped from development.[21] In late 2022, Reliance Energy Development, Inc. rescinded its application for a 300 MW liquefied natural gas facility.[21] Both of these fights received support from local religious leadership, despite the mayor of San Carlos pushing back against environmental advocates.[21] Additionally, in Negros Occidental, Youth for Climate Hope collaborated with several other community-based organizations to lead the Youth Strike for Negros movement ahead of the passage of Governor Marañon's executive order calling the Province coal-free.[10] Also in Negros Oriental, the People of Pulupundan Against Coal-Fired Power Plant (PPAC) and Negrosanons Against Coal-Fired Powerplant (NACP) successfully led an effort to reject a proposed coal-fired power plant.[10]

According to the Air Quality Life Index, Negros Occidental and Negros Oriental would experience average life expectancy increases of 1.21 and 1.24 years, respectively, if fine particular matter pollution was reduced to World Health Organization guidelines.[22]

Employment

Current employment by sector

Based on the International Renewable Energy Agency's 2022 Renewable Energy and Jobs Annual Review, the Philippines employed 11,628 people in geothermal energy; 26,718 in wind; 61,926 in solar; 69,423 in hydropower; 14,047 in biomass; and 34,300 in biofuel.[23]

Moreover, the 2021 Philippine Statistical Yearbook estimates that Central and Western Visayas, the regions that Negros Oriental and Negros Occidental are part of, had 137,000 workers employed in manufacturing; 246,000 workers employed in construction; and 7,000 workers in electricity, gas, steam, and air conditioning supply.[3] These workers have skills and experience that can be leveraged in clean energy industries.

Prospective employment from renewable energy sector

In 2021, the International Renewable Energy Agency estimated that in-development wind energy projects could create 59,000 jobs in the Philippines by 2026.[23]

If all projects in the the current pipeline come to fruition in the next decade, the Institute for Energy Economics and Financial Analysis estimates that over 350,000 jobs will be created throughout the Philippines.[24] Anecdotal evidence suggests that geothermal tends to be the easiest sector for former coal workers to transition into, given the relatively similar skillset, particularly during exploratory phases of project development.[24]

Supply Chain

While mining is a relatively small portion of the country's GDP, the Philippines is rich in several materials needed for the energy transition (generation as well as storage) including copper, cadmium, and nickel.[25] Cobalt reserves in the Philippines are comparable to those of Russia (sixth overall, behind Australia, Cuba, Democratic Republic of Congo, and Indonesia).[26] The Philippines is a member of the World Trade Organization with top trading partners being the United States, Japan, China, and Singapore.[25] Additionally, in 2022, the Philippines and South Korea agreed to coordinate supply chain development and expansion, particularly related to mining of necessary metals and manufacturing electrical vehicles and semiconductors.[27]

The Renewable Energy Act allows solar photovoltaic (PV) modules and ancillary components to be imported duty-free, though components for wind and hydro projects tend to have tariffs ranging from 3-5%, as well as a 12% Value Added Tax.[6] This is because wind and hydro components tend to have locally produced counterparts, whereas solar does not.[6]

In 2022, the Philippines and a dozen partners (Australia, Brunei, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, Singapore, Thailand, the United States, and Vietnam) established the Indo-Pacific Economic Framework for Prosperity.[28] This Framework intends to increase collaboration between partners on efforts to increase the connectivity, resilience, fairness, and sustainability of the nations' collective economies.[28] In total, these nations make up approximately 40% of global GDP.[28]

Land availability

Mongabay: Map of Negros Island, Philippines

Negros Island is comprised of two provinces, Negros Occidental and Negros Oriental, both of which have economies rooted in agriculture and fishing. [29][30] Given its volcanic geology, Negros Island has nutrient-rich soil perfect for agriculture, and an estimated 80% of all arable land has been cultivated.[29] The highest yield crop in both provinces is sugarcane; in 2018, Negros Occidental and Negros Oriental produced over 12 million[29] and 2 million[30] metric tons of sugarcane, respectively. Other economically significant crops include palay (unhusked rice), corn, coconut, banana and banana saba, and cassava.[29]

All of the Philippines, is situated along the Pacific Ocean's Ring of Fire,[31] and Negros is host to significant volcanic activity. The highest point of the island is the peak of Kanlaon (or Canlaon) Volcano, which has an elevation of 2,435 meters of 7,989 feet.[32] In addition, the southeast tip of the island hosts a stratovolcano complex called the Cuernos de Negros.[33] One of the volcanic craters in the complex has already been tapped for geothermal energy production (Palinpinon Geothermal Field)[33] and has the potential for continued development throughout the Negros volcanic belt.[34]

Negros has three national parks: Northern Negros National Park, Mount Kanla-on National Park, and Balinsasayao Twin Lakes National Park. All three parks host vulnerable and rare flora and fauna, including the Visayan spotted deer,[35] Visayan hornbill,[36] and cycas trees,[35] and because of this, community members have taken action against development within the protected areas.

Symbolic Importance

The Philippines aims to be energy independent, though an estimated 43,000 MW will be required to make this happen by 2040.[5] On Negros, the vast majority of energy is imported despite the robust renewable generation capacity that exists on the island already. A 2020 report estimated that 59% of the contracted capacity mix was generated by coal, with another 14% generated by diesel fuel.[2] Due to transmission constraints (see "Transmission" section), the vast majority of renewable energy generated is not delivered to residents of Negros.[4]

As of 2021, an estimated 1.62 million households were not reached for electrification programs created by the Electric Power Industry Reform Act of 2001.[37] Additionally, approximately 1.55 million households are in proximity to (or in the service area of) the 121 electric cooperatives overseen by the National Electrification Administration, and these co-ops coordinate outreach to more 12,000 remote villages throughout the country.[37]

In recent years, the Philippines has experienced significant grid instability with extended seasons of rolling blackouts, largely due to the intermittent reliability of fossil fuels. Continued investment in renewable energy development may improve reliability, and decentralized and distributed systems would help bring stable power to remote communities and islands throughout the country.[11]

Negros is considered the clean energy capital of the Philippines due to both the installed and potential renewable capacity, as well as the aggressive clean energy commitments made by its local leaders. By upgrading transmission infrastructure, following through on targets established by the provinces' governors, and deeply engaging with community members throughout the development process, Negros can lead in clean energy deployment both nationally and globally.

Civil Society Transition

Negros Oriental and Negros Occidental have active communities that have pushed back against fossil fuel projects and celebrated recent clean energy legislation. In Negros Oriental, Youth for Climate Hope collaborated with several other community-based organizations to lead the Youth Strike for Negros movement ahead of the passage of Governor Marañon's executive order calling the Province coal-free.[10] In Negros Oriental, the People of Pulupundan Against Coal-Fired Power Plant (PPAC) and Negrosanons Against Coal-Fired Powerplant (NACP) successfully led an effort to reject a proposed coal-fired power plant.[10]

Other organizations which have spoken out against fossil fuel development on Negros include the Catholic Educational Association of the Philippines,[38] the Center for Energy, Ecology, and Development (CEED),[39] Konsyumer-Negros,[40] and Bukluran ng Manggagawang Pilipino,[40] one of the largest labor groups in the Philippines.

Additionally, individual members of the Catholic Church, such as Bishop Gerardo Alminaza of San Carlos, have spoken openly about Negros' need to reject continued fossil fuel buildout,[38] and anti-coal activists, like Dr. Romana de los Reyes, have advocated for Negros' coal-free status for decades.[41]

Governmental information

The Philippine government is broken down into national, provincial (as well as dense, urban, independent cities like Manila), municipal, and barangay levels.[42] While each level of government maintains its own authorities, it is subject to the laws and regulations of the type nested above (i.e. barangays must adhere to laws of the municipal, provincial, and national government it exists within).[42]

The next iteration of the Philippine Energy Plan is expected to be published in September 2023.[43]

Related government papers

The Electric Power Industry Reform Act (EPIRA) of 2001 was a landmark piece of legislation targeting the Philippines’ energy market.[44] While previous state-owned, EPIRA opens power generation to a competitive market as a means of driving down the price of energy and increase access for underserved consumers.[44] EPIRA yielded several achievements:[44]

  • Improved reliability of electricity
  • Increased number of electrified households
  • Improved generation and transmission efficiency
  • Improved fiscal condition of the country’s power sector.


In 2016, the national government passed the Green Jobs Act, which called on the Philippine Department of Labor and Employment to draft a plan to build a workforce for the energy transition.[45] Through the legislation, businesses can receive tax incentives for the development of skills training and research efforts intended to fill the workforce gap.[45]

The provincial board of Negros Oriental issued Executive Order 9 in 2018, which declares Negros Oriental a clean energy province and commits the local government to not approving permits or endorsements of coal projects.[17] This commitment was made in support of the Paris Agreement.[17] Following this, in 2019, Governor Alfredo Marañon Jr. signed Executive Order 19-08 declaring the Negros Occidental "coal-free" and prohibiting the development of future coal-fired infrastructure in the province[18] Governor Marañon cited Local Government Code of 1991 and the Renewable Energy Act of 2008, both of which call for adequate protection of environmental resources, and received praise from students, environmental advocates, and local religious leaders.[18] The executive order specifically addresses fossil fuel projects within Negros Occidental and does not address energy imported by electric cooperatives.[46]

In early 2022, the Provincial Board of Negros Oriental unanimously voted in favor of passing a Clean, Renewable Energy Ordinance (also called RE Code), which creates carbon credit incentives for potential investors and bans future construction of coal-fired power plants.[47] The RE Code also establishes a council dedicated to accelerating renewable energy development programs to increase energy independence and improve sustainability planning. This is the first ordinance of this kind to pass in the Philippines.[47]

Relevant political coalitions

To roll out the national Total Electrification Program, the Department of Energy signed a Memorandum of Agreement with the Department of the Interior and Local Government to coordinate on inventory assessments of unelectrified households in unserved and underserved areas.[12] In addition, the National Task Force to End Local Communist Armed Conflict is working in tandem with the Department of Energy to identify areas in need of electrical service, particularly in areas of armed conflict.[12]

In 2023, lawmakers approved the recreation of the Negros Island Region (NIR) encompassing Negros Oriental, Negros Occidental, and the island province of Siquijor.[48] Local lawmakers advocated for NIR's creation as means to better coordinate economic development efforts. Similar legislation establishing NIR passed in 2015 and subsequently abolished in 2017.[48]

Permitting

A 2017 Executive Order intended to reduce the timeline for permitting large-scale energy projects. Previously, the permitting process took approximately 1,340 days and 359 signatures across 74 different agencies. The executive order sates that permits for Energy Projects of National Significance must be approved within 30 days. A lack of response within that timeline signifies approval by the relevant agency. This legislation does not affect all projects; only those with a capital investment of at least PHP 3.5 billion (USD $70 million), significant economic impact, significant impact on the environment, complex technical and engineering needs, and significant infrastructure requirements qualify.[49]

As of 2020, the Philippines adopted a moratorium on the issuance of permits for new coal construction projects.[50]

Renewable energy projects undergo a slightly different permitting process than conventional energy sources. During the Registration and Application phase, project developers must collect a Certificate of Endorsement from the Department of Energy; Certificate of Registration of the Securities and Exchange Commission; Certificate or Registration from Bureau of Internal Revenue; and Barangay Clearance and Municipal Business Permits from local government units. Developers must also submit a Letter of Intent; application, processing, and signing fees; and multiple sets of application documents. During Pre-Development, projects must collect a renewable energy service or operating contract; a Certificate of Endorsements for other Agencies (besides DOE); a Certificate of Non-Overlap/Environmental Compliance Special Land Use Permit, Forest Land Use Agreement, and Tree-Cutting Permit; a Power Supply Agreement; a Certificate of Non-Overlap or Certificate Precondition; Land Use Conversion with endorsements from several agencies; a Resolution of Support; Availment of fiscal incentives; Water permits and water rights agreements; Right-of-Way agreements, and height limitation clearance as necessary. Projects must also complete a System Impact Study, a Facility Study, a Distribution Impact Study, and a Distribution Asset Study during this phase. During the Conversion phase, the developer must complete a Declaration of Commerciality and Application of Conversion, as well as receive a Certificate of Confirmation of Commerciality. The Development phase consists of construction and commissioning. During Development, a developer must collect a Renewable Energy Development Service Contract and Certificate of Endorsement; Building, Electrical, and Location permits; a Connection Agreement; a Certificate of Compliance; a Renewable Energy Payment Agreement; and a Power Purchase Agreement and Renewable Energy Supply Agreement. Developers must also complete a Transmission Service Application and WESM Registration and must be OSH compliant.[51]

In early 2024, The Energy Regulatory Commission (ERC) of the Philippines announced measures to streamline the permitting process for solar home systems (SHS), ahead of this year's El Niño season. The ERC is rolling out a one-stop-shop and a partnership with the Landbank of the Philippines to provide financing support.[52]

Lengthy permitting timelines, often multiple years long, are a major obstacle to renewable energy development, and several pieces of legislation have been passed in an effort to make the process easier. The Ease of Doing Business and Efficient Government Service Delivery Act mandates the use of a one-stop-shop and standardized business application forms to streamline permits and clearances. The Energy Virtual One Stop Shop is an online platform that allows developers to submit, and regulators to process and monitor, permit applications. Even off-grid projects must undergo this process.[53]

Transmission and Grid Capacity

Negros is part of the Visayas Transmission Network, which also includes the islands of Samar, Leyte, Bohol, Cebu, and Panay.[54] In total, the Visayas Grid is comprised of approximately 5,378 kilometers (3,342 miles) of transmission lines.[13] The load center for Negros is located in Bacolod City.[54] In 2021. the Wholesale Electricity Spot Market in the Visayas grid transitioned into a 5-minute dispatch, which increases the time granularity of the energy market.[55]

Current transmission resources

In recent years, several transmission projects have been undertaken to improve connectivity for Negros. Three transmission reinforcement projects are underway to upgrade the backbone connecting Cebu, Negros, and Panay, rated at 230 kV each.[56] Additionally, Negros is expecting a new 230 kV substation in Granada (expected operation date October 2024), a 138 kV substation in La Carlota (EOD December 2024), and a 138 kV substation in Silay (EOD December 2025).[54]

Visayas Transmission Network, as published by the 2020-2040 Transmission Development Plan.
Negros Island's Transmission Network, as mapped by the Transmission Development Plan 2022-2040


New transmission needed for renewables

A Feed-in Tariff System (FiT) was established through the Renewable Energy Act of 2008, which guarantees a fixed purchasing price for energy generated by new renewable projects[57] and gives priority transmission connection.[54] Due to timing constraints, many solar projects were completed in quick succession, which the grid lacked capacity to support.[2]

This challenge is currently being addressed. High load concentration in parts of Leyte, Negros, and Panay causes occurrences of low voltage, which can cause power curtailment.[56] To address this, Visayas is undergoing a whole-system upgrade process with specific focus paid to renewable energy (namely solar) projects coming online.[56]

Social and environmental impacts of new transmission

According to the Transmission Development Plan 2023-2040, upcoming transmission upgrades relevant to Negros focuses on connecting the island to Cebu and Panay. These projects must be sited such that they do not impact biodiversity hotspots like the Iloilo Strait, Nueva Valencia, Moalboal, Ban-ban, and Bais Bay.[58][59]

Misalignment between project construction and transmission planning may slow renewable deployment. For example, while wind and solar projects take only two to three years to construct, they tend to be sited far from load centers, so necessary transmission typically requires five or more years to complete.[54] To mitigate this challenge, the Department of Energy established Competitive Renewable Energy Zone (CREZ) transmission planning process. The CREZ process identifies regions where renewable expansion would be most economically viable and prioritizes related transmission.[60] Negros has two CREZ, both in northwest Negros Occidental, as illustrated below.[60]

Solar irradiance across all competitive renewable energy zones. Source
Wind speeds at 100m across all competitive renewable energy zones. Source


National Grid Infrastructure

International Energy Agency has identified four phases to integrating VREs to the grid:[61][55]

  1. VREs are deployed but highly localized. VRE generation up to 3% at any given time.
  2. Upgrades are made to operational practice to better integrate more VRE plants as they are added to the system. VRE generation between 3% and 15% at any given time.
  3. Systematic increases in power system flexibility are made to balance changes in supply and demand. VRE generation between 15% and 25% at any given time.
  4. VRE output is sufficient to meet majority of power demand; subsequent changes to operational and regulatory approaches are made to support VREs. VRE generation between 25% and 50% at any given time.


Electricity losses throughout transmission and distribution are approximately 9.4%, which is relatively high and suggests inefficiencies in the grid system. Several factors hinder transmission upgrades and energy projects as a whole: transmission projects tend to be slowed by right-of-way issues, and energy projects overall average 1,876 calendar days, 359 signatories, and 74 agencies to complete.[62]

Renewable Energy Penetration

As of 2021, VRE penetration at any given time in the Philippines was approximately 3%.[55] The Philippines aims to achieve 35% variable renewable energy penetration in 2030 and 50% in 2040. Increased flexible generation, rather than baseload generation, will allow the grid to shift to meet high fluctuations in load demand.[55]

Renewable energy penetration scenarios for the Luzon-Visayas Power System. Amended from USAID's Greening the Grid report.
Projected Wind and Solar Penetration across 2030 Scenarios for the Luzon-Visayas Power System. Amended from USAID's Greening the Grid report.









Recently Completed and Planned Grid Upgrades

The National Grid Corporation of the Philippines (NGCP), the privately-owned entity that develops, operates, and maintains the country's power grid, keeps a document database tracking supply, demand, outages, and planned generation and grid updates.[63]

This year, NGCP successfully energized a new 500-kV transmission line from Hermosa to San Jose, a transmission project that was deemed "Of National Significance" due to its ability to improve the backbone reliability of the Luzon transmission system.[64] Similarly, NGCP is in charge of the Cebu-Negros-Panay backbone transmission project, which is intended to redistribute surplus power (equal to approximately two 400-MW power plants) from the Western Visayas to Cebu.[65] Stage III of the project is expected to be complete by the end of 2023.[66]

Potential Sources of Grid Financing

The Development Bank of the Philippines's Financing Utilities for Sustainable Energy Development Program provides funding for distribution and transmission projects that aim to improve safety and safety while reducing system losses.[67]

Civil Society Organizations

Greenpeace Philippines advocates for increased renewable energy deployment across the country while holding polluters and fossil fuel financiers accountable. They also publish reports outlining analyses and recommending strategies for the energy transition, namely Decarbonize Meralco.[68]

Based in the Philippines, the Institute for Climate and Sustainable Cities (ICSC) works with other international climate and energy policy actors, particularly those in Asia, to advance climate justice and low-carbon and resilient development.[69] ICSC’s publications include Luzon Power Outlook: Reviewing the Adequacy of Power Supply for April to June 2023 and Towards and Affordable and Reliable Grid with Energy Transition (TARGET).

Light of Hope PH is a grassroots campaign based in Cebu which provides clean energy technology to support off-grid and rural communities.[70]

Ownership

Major owners of current fossil capacity

Despite the fact that the majority of generating capacity on Negros is renewable, most of that power is exported, and residents of Negros primarily receive energy generated through fossil fuels.[2] According to the REPower Negros report published in 2020, electric cooperatives on Negros contract fossil fuel power owned by Korean Electric Power Corporation, SPC Power Corporation, Palm Concepcion Power Corporation, SPC Island Power, and Central Negros Power Reliability, Inc.[2]

After the passage of the Electric Power Industry Reform Act of 2001, the power sector is fully privatized, and Meralco, a utility, holds 80% of the market share.[5] In 2019, Meralco's contracted and generated energy mix was almost 97% fossil fuels.[16]

Major owners of prospective renewables

Many renewable projects are in development on Negros, and future buildout would benefit from experienced developers and owners. Existing geothermal projects are owned only by Energy Development Corporation.[7] Existing and upcoming solar projects are owned by San Carlos Solar Energy Inc., Negros Island Solar Power Inc., Bronzeoak Philippines, ThomasLloyd Group, and the Philippine Investment Alliance for Infrastructure.[8] Existing and upcoming wind projects are owned by Equitrust Holdings Inc., Triconti ECC Renewables Corp., and Iberdrola.[9]

Finance

Potential providers of wind/solar finance

The Philippines is one of four recipients of Japan’s Asia Zero Emission Community initiative, which will provide USD$8 billion for energy projects by 2030.[71]

Previous renewable energy initiatives have been funded through Official Development Assistance, which is designed to support the economic development and welfare of developing countries.[6] Beyond this, renewable energy has also been funded through mixed credit financing from Denmark, Spain, Germany, and France, as well as through loans from the World Bank, the United States Agency for International Development, and the United States Trade and Development Agency.[6]

The Asian Infrastructure Investment Bank (AIIB) has committed to aligning their operations with the goals of the Paris Agreement and established a target of committing 50% of overall financing to climate initiatives by 2025.[72] In 2021, 78% of the 2.9 billion USD provided by AIIB went toward climate mitigation projects like renewable energy projects, energy efficiency upgrades, and developing and updating public transportation across Asia.[72] Also in 2021, multilateral development banks like AIIB provided 51 billion USD in climate financing to low- and middle-income countries like the Philippines.[73]

Southeast Asia Energy Transition Partnership

The Philippines is part of the Southeast Asia Energy Transition Partnership, which aims to leverage philanthropic and government funding to accelerate the energy transition in the region.[74] ETP is providing funding to nine projects in the Philippines:[75]

  • Demand Side Management Policy
  • ESCO-in-a-Box
  • Investment Grade Audit Program
  • Offshore Wind Development
  • Philippines Grid Diagnostic and Roadmap for Smart Grid Development
  • Power Sector Development Roadmapping in Bangsamoro Autonomous Region in Muslim Mindanao
  • Smart Grid Transformation in the Power Distribution Sector
  • Upgrading Design and Implementation of the Energy Battery Storage Market Mechanism of the Philippines Electricity Market Mechanism
  • Upgrading Energy Regulations for the Energy Regulatory Commission of the Philippines


The Philippines has also indicated that leaders are meeting with Just Energy Transition Partnership donor countries.[76]

Additionally, in 2016, the Philippines received financial support from the Swedish International Development Cooperation Agency and the Regular Budget Supplementary Account of the International Labour Organization to roll out the "Guidelines on Just Transition towards Environmentally Sustainable Economies and Societies" pilot project,[77] which was intended to coordinate government agencies and other stakeholders to build capacity and conduct analysis on green jobs and their environmental, economic, and labor impacts.[78] Ghana and Uruguay were also sites of this pilot project.[77]

Other

The Feed-in Tariff System (FiT), established by the Renewable Energy Act of 2008, guaranteed a fixed purchasing price for energy generated by new renewable projects.[57] While it is considered a non-fiscal incentive mechanism, FiT provides assurance to potential renewable energy developers that their projects will be financially feasible.[57]

The Monetary Board of the Central Bank of the Philippines (Bangko Sentral ng Pilipinas) approved the creation of the Sustainable Finance Framework in 2020.[79] The Framework encourages financing institutions to value potential climate and transition risk, as well as the resilience and carbon reduction value that may be generated through the proposed activity.[79]

Projects targeting Negros have piloted revolving funds for households in rural communities to receive support for connecting to the grid, as well as general livelihood support intended to increase disposable income for participants.[80]

The Development Bank of the Philippines also operates the Financing Utilities for Sustainable Energy Development (FUSED) Program, which finances upgrades to the power generation and distribution system. FUSED provides funding for projects focused on development and construction of energy generation and mini grids, distribution and transmission projects, equipment upgrades, and increasing reliability and efficiency of rural power systems.[67]

Articles and resources

Related GEM.wiki articles

Philippines and Coal

Philippines and fossil gas

Citizen groups working on coal issues

References

  1. ↑ “Philippine Yearbook 2013: Physiology and Related Characteristics,” Philippine Statistics Authority, 2013
  2. ↑ 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 “REPower Negros: A Scoping Study of Negros Island's Power Sector Transformation,” Center for Energy, Ecology, and Development, September 2020
  3. ↑ 3.0 3.1 “Philippine Statistical Yearbook (PSY),” 2021 Philippine Statistical Yearbook, Retrieved May 25 2023
  4. ↑ 4.0 4.1 “Study finds Negros Island’s potential in Philippines’ energy transformation,” Licas News Philippines, September 30 2023
  5. ↑ 5.0 5.1 5.2 “Philippines Energy Market,” International Trade Administration, Retrieved May 26 2023
  6. ↑ 6.0 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 “Energy Resource Guide - Philippines - Renewable Energy,” International Trade Administration, Retrieved May 26 2023
  7. ↑ 7.0 7.1 7.2 7.3 7.4 Global Geothermal Power Tracker, Global Energy Monitor, January 2023 release.
  8. ↑ 8.0 8.1 8.2 8.3 8.4 Global Solar Power Tracker, Global Energy Monitor, January 2023 release.
  9. ↑ 9.0 9.1 9.2 9.3 9.4 Global Wind Power Tracker, Global Energy Monitor, January 2023 release
  10. ↑ 10.0 10.1 10.2 10.3 10.4 “Youth group says no to coal-fired power plants in Philippines island province,” Eco-Business, March 19 2019
  11. ↑ 11.0 11.1 11.2 “Why the Time Is Right for Renewable Energy in the Philippines,” World Resources Institute, July 29 2021
  12. ↑ 12.0 12.1 12.2 12.3 12.4 12.5 “2020-2040 Philippine Energy Plan,” Department of Energy, Retrieved May 25 2023
  13. ↑ 13.0 13.1 “Transmission Development Plan 2022-2040,” National Grid Corporation of the Philippines, Retrieved May 30 2023
  14. ↑ “Drivers, Roadblocks and Status Quo of Renewable Energy Development in the Philippines: A Literature Review,” Nueva Vizcaya State University, 2022
  15. ↑ “Just Energy Transition In The Philippines Remains Bleak Under Marcos,” The News Lens, April 19 2024
  16. ↑ 16.0 16.1 “Decarbonizing Meralco,” Greenpeace, April 2021
  17. ↑ 17.0 17.1 17.2 "Development projects win peace for Negros Oriental,” Philippine News Agency, December 29 2019
  18. ↑ 18.0 18.1 18.2 “Marañon declares Negros Occidental ‘coal-free’,” Philippines News Agency, March 7 2019
  19. ↑ 19.0 19.1 Global Coal Plant Tracker, Global Energy Monitor, January 2023 release.
  20. ↑ 20.0 20.1 “Air Quality & Health Impacts of Coal-fired Power in the Philippines,” Centre for Research on Energy and Clean Air, December 20 2020
  21. ↑ 21.0 21.1 21.2 “Negros Occidental environmentalists hail end to liquefied natural gas project,” Rappler, November 16 2022
  22. ↑ “The Index,” Air Quality Life Index, Retrieved June 24 2024
  23. ↑ 23.0 23.1 “Renewable Energy and Jobs Annual Review 2022,” International Renewable Energy Agency, Retrieved May 24 2023
  24. ↑ 24.0 24.1 “How the Philippines’ low-carbon plans may fuel a switch to green jobs,” Eco-Business, April 30 2021
  25. ↑ 25.0 25.1 “Resources and power,” Britannica, Retrieved May 25 2023
  26. ↑ “Revitalize Industry,” Philippine Development Plan 2023-2028, Government of the Philippines, Retrieved June 23 2023
  27. ↑ “Philippines, South Korea to develop supply chain, energy cooperation,” PhilStar Global, November 14 2022
  28. ↑ 28.0 28.1 28.2 “FACT SHEET: In Asia, President Biden and a Dozen Indo-Pacific Partners Launch the Indo-Pacific Economic Framework for Prosperity,” The White House, May 23 2022
  29. ↑ 29.0 29.1 29.2 29.3 “Negros Occidental,” Department of Agriculture, Retrieved May 23 2023
  30. ↑ 30.0 30.1 “Negros Oriental,” Department of Agriculture, Retrieved May 23 2023
  31. ↑ “Plate Tectonics and the Ring of Fire,” National Geographic, Retrieved May 24 2023
  32. ↑ “Kanlaon,” Smithsonian Institution National Museum of Natural History Global Volcanism Program, Retrieved May 24 2023
  33. ↑ 33.0 33.1 “Cuernos de Negros,” Smithsonian Institution National Museum of Natural History Global Volcanism Program, Retrieved May 24 2023
  34. ↑ “Thermal Areas of the Philippines,” Geothermal Division of the Energy Resource Development Bureau, June 10 2000
  35. ↑ 35.0 35.1 “Philippines: Northern Negros National Park Threatened,” Deep Green Resistance News Service, November 13 2020
  36. ↑ “Ornithologists discover more rare hornbills than thought on Philippine island,” Mongabay, July 31 2020
  37. ↑ 37.0 37.1 “The irony of Negros Island’s abundant renewable energy,” Oxfam, June 14 2022
  38. ↑ 38.0 38.1 “Philippine schools join coal-fired power plant protest,” UCA News, July 1 2019
  39. ↑ “History,” Center for Energy, Ecology, and Development, Retrieved May 31 2023
  40. ↑ 40.0 40.1 “Negros consumers protest alleged BPI coal investments,” Digicast Negros, April 21 2021
  41. ↑ “Youth, advocates continue fight for coal-free Negros amid new leadership,” Rappler, July 2 2019
  42. ↑ 42.0 42.1 “Philippine Government Structure with a Focus on the Philippine Barangay,” Sauk Valley Community College, Retrieved May 24 2023
  43. ↑ “Transmission planning to be included in new Philippine Energy Plan,” PhilStar Global, June 12 2023
  44. ↑ 44.0 44.1 44.2 “The Philippine electric power industry under EPIRA,” Philippine Institute for Development Studies, December 2018
  45. ↑ 45.0 45.1 “Republic Act No. 10771,” Official Gazette of the Republic of the Philippines, April 29 2016
  46. ↑ “Governor declares Negros Occidental coal-free,” Rappler, March 7 2019
  47. ↑ 47.0 47.1 “Negros Oriental launches country’s first Renewable Energy Code today,” Energy Development Corporation, January 28 2023
  48. ↑ 48.0 48.1 “House passes bill creating Negros Island Region,” Philippine News Agency, March 6 2023
  49. ↑ “Philippines significantly cuts permitting time for large-scale energy projects,” Think Geoenergy, July 10 2017
  50. ↑ “Philippines announces moratorium on new coal power,” European Council for an Energy Efficient Economy, October 28 2020
  51. ↑ “Registration Procedures for Energy Projects,” Investment Promotion Office for the Department of Energy, Retrieve January 12 2024
  52. ↑ “ERC streamlines process for solar home systems permits as proactive measure to mitigate impact of El Niño, summer months,” Office of the President of the Philippines Presidential Communications Office, January 6 2024
  53. ↑ “Monitoring Renewable Energy Implementation in the Philippines (MoRE) Project,” World Wildlife Foundation Philippines, 2023
  54. ↑ 54.0 54.1 54.2 54.3 54.4 “Transmission Development Plan 2020-2040,” NGCP, Retrieved May 24 2023
  55. ↑ 55.0 55.1 55.2 55.3 “Towards an Affordable and Reliable Grid with Energy Transition (TARGET),” CASE for Southeast Asia, December 2021
  56. ↑ 56.0 56.1 56.2 “CEPNS Project,” Department of Energy, Retrieved May 26 2023
  57. ↑ 57.0 57.1 57.2 “Evaluating the Feed-in Tariff Policy in the Philippines,” SSRN, February 10 2020
  58. ↑ “Transmission Development Plan 2023-2040,” National Grid Corporation of the Philippines, Retrieved June 25 2024
  59. ↑ “Priority Sites for Conservation in the Philippines: Marine and Terrestrial Key Biodiversity Areas,” Conservation International Philippines, Haribon Foundation, Department of Environment and Natural Resources - Biodiversity Management Bureau, Retrieved June 25 2024
  60. ↑ 60.0 60.1 “Ready for Renewables - Grid Planning and Competitive Renewable Energy Zones (CREZ) in the Philippines,” Department of Energy, Retrieved May 24 2023
  61. ↑ “Thailand Renewable Grid Integration Assessment,” International Energy Agency (IEA), 2018
  62. ↑ “Expand and Upgrade Infrastructure,” Philippine Development Plan 2023-2028, Government of the Philippines, Retrieved June 23 2023
  63. ↑ “DOE Documents,” National Grid Corporation of the Philippines, Retrieved June 23 2023
  64. ↑ “NGCP energizes PhP 10.2Bn Hermosa-San Jose transmission line,” National Grid Corporation of the Philippines, May 29 2023
  65. ↑ “Cebu-Negros-Panay Interconnection phase 1 completed by year’s end,” Business World, October 11 2022
  66. ↑ “NGCP: Transmission projects to be completed this year,” The Manila Times, June 21 2023
  67. ↑ 67.0 67.1 “Financing Utilities for Sustainable Energy Development (FUSED),” Development Bank of the Philippines, Retrieved June 23 2023
  68. ↑ “#Energy,” Greenpeace, Retrieved June 23 2023
  69. ↑ “Energy,” Institute for Climate and Sustainable Cities, Retrieved June 23 2023
  70. ↑ [ https://lightofhopeph.org/#testimonials “Light of Hope PH,”] Light of Hope PH, Retrieved June 23 2023
  71. ↑ “World Energy Investment 2024,” International Energy Agency, June 2024
  72. ↑ 72.0 72.1 “Investing in Climate Action,” Asian Infrastructure Investment Bank, Retrieved May 30 2023
  73. ↑ “Multilateral Development Banks’ Climate Finance in Low and Middle-Income Countries Reaches USD51 Billion in 2021,” Asian Infrastructure Investment Bank, October 14 2022
  74. ↑ “About ETP,” Energy Transition Partnership, Retrieved May 24 2023
  75. ↑ “Philippines,” Energy Transition Partnership, Retrieved May 24 2023
  76. ↑ “Reasons to be hopeful: Four great, green trends to watch in 2023,” Environmental Defense Fund, January 24 2023
  77. ↑ 77.0 77.1 “Philippines: A Whole-of-government Approach to Creating Green Jobs,” World Resources Institute, April 1 2021
  78. ↑ “Pilot Application of Policy Guidelines on Just Transition towards Environmentally Sustainable Economies and Societies for All in the Philippines (Just Transition),” International Labour Organization, Retrieved May 31 2023
  79. ↑ 79.0 79.1 “Philippines Central Bank’s sustainable finance framework offers new support for energy transition and renewables,” Institute for Energy Economics and Financial Analysis, May 1 2020
  80. ↑ “Philippines: Renewable Energy and Livelihood Development for the Poor in Negros Occidental,” Asian Development Bank, November 2021
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