Green Energy

Its

Importance, Success & Failures

Douglas E. Railton

Introduction
Involvement with sustainable projects since the mid 80s Adequate energy resources are required for national development Philippines has established the best Green Energy policy in the ASEAN Region Goal is to implement and sustain a renewables policy that significantly contributes to the energy independence of the Philippines

Renewable (Green) Energy

Derived from natural resources 19% global final energy consumption from renewables 13% from Biomass Mainly heating & cooking 3.2% Hydroelectricity 2.7% from new renewable sources Solar, Wind, Biofuels

Renewable (Green) Energy

Wind power growing 30% per year globally, 158 Gw installed Solar power (PV) growing 32% per year globally, 21Gw installed Renewable energy suited for large utility scale programs and rural/remote applications
3m households powered by solar 30m rural households use biogas from small-scale digesters Micro-hydro can be scaled for community deployment

Renewable (Green) Energy

Five Key Sectors to the Renewables Industry Hydroelectric Geothermal Biomass Solar Wind

Renewable (Green) Energy

Hydroelectric Typically large scale, long gestation period to generate power Philippines has a generation capacity of 3,367Mw Micro-hydro rapidly gaining support
Mature technology with substantial recent technological improvements Generally ignored by governments and funding programs

Renewable (Green) Energy

Advantages

Micro-Hydro Disadvantages
Requires fast flowing streams or elevation drop to develop head Requires local maintenance knowledge

Sustainable Environmentally friendly Community scale Easy deployment Good return to investors

Renewable (Green) Energy

Geothermal Producing power in over 70 countries Philippines number two in global capacity Pacific Ring of Fire ideal for further expansion 1,904 Mw or 20% of Philippine power generated by Geothermal

Renewable (Green) Energy

Advantages

Geothermal Disadvantages
Geographically specific locations High capital costs Maintenance costs about 2x of fossil fuel plants Generally require large plants Often less than 10% efficient

Sustainable Environmentally friendly Cost effective addition to grid Used for heat or power Generates power 24/7

Renewable (Green) Energy

Biomass Philippines has extensive feedstock Over 650 biogas systems operating in the Philippines Large growth potential Can generate power directly or convert to different energy form Biomass generation in the Philippines is 21.3Mw

Renewable (Green) Energy

Advantages Biomass Disadvantages
Direct power plants not environmentally friendly Expensive from both capital and operating standpoints Small scale systems might be negative energy generators

Sustainable Environmentally friendly (secondary conversion) Easy deployment Generates power 24/7

Renewable (Green) Energy

Solar Converts sunlight to electric energy Distributed systems are generally building or small site specific Centralized systems supply independent power to buildings or small communities Utility scale systems generally larger thatn 1Mw, Investor Owned Utilities Largest system under construction in California over 1,300Mw

Renewable (Green) Energy

Solar Philippine has outstanding small utility scale plant at Cepalco with a 1Mw capacity Philippines generally has good solar resources Present generation in the Philippines is about 5.0Mw

Renewable (Green) Energy

Advantages Solar Disadvantages
Low efficiency Weather has significant generation impact Generates power only during daylight hours High capital cost

Sustainable Environmentally friendly Excellent supplemental power source Versatile deployment Low maintenance costs

Renewable (Green) Energy

Wind Fastest renewable technology globally 40% (aprox) of new global production coming from wind Widely accepted by utility companies Most cost effective of utility scale renewable energy generation systems Present generation in the Philippines is about 25.2Mw

Renewable (Green) Energy

Advantages Wind Disadvantages
Large land areas required Limited wind resources High capital cost High maintenance costs

Sustainable Environmentally friendly Excellent supplemental power source Generates power 24/7

Policy, Insure Success or Promote Failure

Responsible government intervention required Numerous incentive programs in place today resulting in a fragmented confusing approach to implementation of Green Energy Two fundamental incentive programs in place today
In-Feed-Tariff or Production incentives Investment incentive

Policy, Insure Success or Promote Failure

Germany Renewables Energy Act Germany is first major renewable-energy economy Renewable energy increased from 6.3% in 2000 to 16.1% in 2009 with a resulting investment of 20B EU 350,000 people employed in the renewables sector 2/3 of the growth attributed to the renewables act Restructured in 2000 to be production based with Feed-In Tariffs
Guaranteed level of tariff depending on size and technology 20 year tariff guarantee

Policy, Insure Success or Promote Failure

Oregon, Explosive Solar industry growth, But.. Ranked 27 in population in USA, ranked 6th in solar Increases of 000s% percent per year last several years One of the most lucrative incentive programs globally Total incentives over 90% in three years Incentives based on investment Successful in bringing new manufacturing with thousands of jobs SolarWorld, Vestas Wind Systems, Sanyo Solar

Policy, Insure Success or Promote Failure

Oregon, Explosive Solar industry growth, But.. Administered by Oregon Department of Energy, Energy Trust and Public Utilities Commission Investment incentive scheme promotes gamers State budget shortfalls have placed incentives in danger Installation of future systems unsure Numerous solar contractors closing or moving business

Policy, Insure Success or Promote Failure

Misnomer or Misapplication 28kW Centralized Solar (PV) System installed in Cebu Power for 200+ homes System granted by Belgium government System degrading from age Failure to maintain battery reserves Extremely expensive to operate Not a sustainable business model, requires continuous cash infusion by government or other 3rd party

Policy, Insure Success or Promote Failure

Barriers to Green Energy projects Lack of clear sustainable government policy Customer awareness lacking for Green Energy High cost of technologies Inadequate financing options Inadequate skilled workforce Lack of building code standards Lack of stakeholder/community participation

Strategic Action
Republic act 9513 makes Philippines the most advanced nation in ASEAN community regarding renewables Need integrated one-stop-shop for processing of green energy projects Identify key geo-political areas for green energy deployment Promote the growth of the green energy industry manufacturing resulting in creation of jobs Identify and facilitate new pilot projects

Strategic Action
Potential Identification of Project Zamboanga Freeport 10mW Solar Power Plant Chronic shortage of power 10mW plant would require aprox 25 hA Industrial land underutilized Local power substation 30-45,000 PV modules Offset 30,000 barrels of fuel oil
EA Trilink Corporation will sponsor introduction of pilot program to BIMP-EAGA in January

Thank You
Douglas E. Railton

EA Trilink Corporation