ETP is streamlining the Green Energy Auction Program (GEAP) and Competitive Selection Process (CPS) by addressing regulatory gaps and establishing a payment framework for winning bidders. ETP is also assisting in developing a contract template for a new “opt-in” auction mechanism for utilities and preparing the regulatory framework for the Microgrid Act to simplify renewable energy-hybrid microgrid systems. Additionally, ETP has finalized and submitted a draft CSP Exemption Guideline for electric cooperatives to the government and is supporting the review of draft guidelines for Renewable Energy Embedded Generation Facilities.
Expert Consultant
Department of Energy
Energy Regulations Commission (ERC)
National Electrification Administration
Strategic Outcome 1: Policy Alignment With Climate Commitments
ETP is working to modernize and improve the regulatory framework for integrating variable renewable energy (VRE) into the grid. The current grid codes and regulations are not well-suited for managing VRE and lack clear guidelines for connecting energy storage systems and other smart grid technologies. ETP has completed a strategic review of the existing energy transition regulatory framework, along with a review of Distribution System Loss caps and power reliability standards to enhance grid efficiency. We will support public consultations to finalize the updated grid codes.
Strategic Outcome 3: Extending Smart Grids
Under the Upgrading Energy Regulations Project for the Energy Regulatory Commission of the Philippines, three focus group discussions (FGDs) were conducted to discuss proposed changes to the Philippine Grid Code (PGC), Philippine Distribution Code (PDC), and Philippine Small Grid Guidelines (PSGG). The recommendations aim to align the three codes to international practices and standards and cover diverse areas, including energy storage, power quality, connection requirements for conventional and inverter-based energy storage systems, among others. These changes are critical to create a more robust and sustainable power grid in the Philippines, embracing international standards and clean technologies to foster a more resilient and greener grid. The three-day FGDs were attended by governments, private generators, distribution utilities and other key stakeholders in the Philippines power sector.
The project finances Investment-Grade Audits done by local Energy Service Companies (ESCO) for energy efficiency projects to make these bankable and reduce risks to investments. The IGA will demonstrate the impact of energy efficiency measures in terms of tangible energy costs savings on clients’ balance sheets and on GHG emissions reductions. The program also contributes in growing the local ESCO industry by engaging with different ESCOs and opening up the market for them. This initiative is led by Climargy, under ETP’s Energy Efficiency Innovation Window.
Climargy
Private sector facilities
Strategic Outcome 2: De-risking Renewable Energy and Energy Efficiency Investments
Coming Soon
This project aims to support the country’s goal of modernizing its power grid by developing a road map for investment upgrades and proposing an alternative governance structure. This will ensure flexibility, security, and resiliency of the power grid. The project is described in Table 1, and its comparison with related external consultancy work that may impact the project is also provided.
RICARDO-AEA Limited
Department of Energy
Strategic Outcome 3: Extending Smart Grids
The project has identified recommendations to update the existing permitting framework, drawing insights from Good International Industry Practice and established offshore wind (OSW) markets documented through case studies. Through consultations and dialogues with relevant agencies, the project mapped out the permitting requirements and process flow for offshore wind power projects, which will be integrated into the Government’s online application platform for energy projects.
Niras Asia
Department of Energy
SO1: Policy Alignment with Climate Commitments
Coming Soon
ETP is supporting the development of a DSM program. It includes several technical capacity building sessions for energy policymakers and distribution utilities, who are expected to lead in implementing the DSM program options. The project has completed six case studies linked with capacity development for the DOE, ERC and National Electrification Administration, and has more training underway aimed for distribution utilities.
International Institute for Energy Conservation (IIEC)
Department of Energy – Energy Utilization Management Bureau
Strategic Outcome 1: Policy Alignment With Climate Commitments
The OSW Marine Spatial Planning (MSP) tool seeks to foster a more favorable environment for offshore wind development in the Philippines. The MSP tool aims to identify suitable OSW farm sites while minimizing conflicts with other users of the marine space by addressing biodiversity, social, and technical sensitivities. Extensive stakeholder engagement was conducted to gather feedback, collect data, and validate sensitivities, also fostering awareness on the considerations involved in developing the MSP tool and the sensitivities to be accounted for in OSW development.
BVG Associates
Department of Energy
SO2: De-risking Renewable Energy and Energy Efficiency Investments
The project addresses market barriers for RE investments. By assessing and updating methodologies, the project will set price mitigation measures and recommend new cap values to offset current low price caps, which are discouraging for RE investments.
Intelligent Energy Systems
Philippines Electricity Market Corporation
Strategic Outcome 2: De-risking Renewable Energy and Energy Efficiency Investments
ETP is supporting further research into clean energy scenarios including coal phaseout, and outlining necessary upgrades to the transmission network. A technical working group has been established to guide project implementation and to strengthen the government’s capabilities in integrated generation and transmission expansion planning. This will support informed policy-making, ambitious clean energy target setting, and attracting investments in renewable energy infrastructure.
Intelligent Energy Systems
Department of Energy
Strategic Outcome 1: Policy Alignment with Climate Commitments
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This project is supporting the Department of Energy (DOE) to achieve the Philippines clean energy targets under the Clean Energy Scenario. Energy storage systems are imperative to allow for the integration of variable renewable energy and demand side management interventions into the grid. For decades, pump storage hydro power has been deemed as the most technologically mature energy storage systems on grid. However, its development are considered high risk by project developers/ investors as there lacks policy for other market mechanisms suitable to its use. The project will help verify the risks and recomend de-risking mechanisms for pump storage hydro (PSH) project development. The project will provide capacity building and engage stakeholders to ensure successful PSH implementation. By enabling PSH as the energy storage solution, the project will address grid-connection issues associated with VRE, such as curtailment, load shifting, frequency problems, black start, and capacity firming.
INTEGRATION Energy GmbH
Department of Energy
Strategic Outcome 04: Knowledge and Awareness Raising
Strategic Outcome 02: De-risking Renewable Energy and Energy Efficiency Investments
This initiative will undertake a comprehensive evaluation of the Philippines’ policy landscape and institutional frameworks. The primary objective is to assess their suitability for the adoption of a carbon pricing instrument (CPI). This evaluation will identify gaps and inconsistencies, including potential congruences within the existing policy regime, with a particular focus on their compatibility with the potential issuance of a new policy on carbon tax or an emissions trading scheme. The analysis will encompass relevant existing policies, including national fiscal policy and sector-specific regulations in potentially affected sectors such as power, transport, and industry. Additionally, high-level consideration will be given to planned sector-specific regulations. Notably, the scope of the assessment will cover both of the major CPIs: emissions trading schemes and carbon taxes.
NEL Consulting
Philippines Electricity Market Corporation
Energy Regulatory Commission of the Philippines: Department of Energy
Strategic Outcome 1: Policy Alignment with Climate Commitments
ETP supports the Philippine Electricity Market Corporation to establish competitive and transparent market mechanisms for battery and other energy storage systems within the wholesale electricity spot market. The project fosters de-risking investments in the energy storage systems, enriches market participation, and facilitates modernisation of the power grid, thus enabling the Philippines to reach its renewable energy potential and climate targets.
Expert Consultant
Department of Finance
Strategic Outcome 4: Knowledge and Awareness Raising
This technical assistance instigates a holistic approach to smart grid transformation of the distribution sector and contributes to the deployment of renewable energy through embedded generation. It includes identifying the key issues and proposing solutions to smart grid adoption for power distribution in the context of the Philippines Smart Grid Policy Framework. A financing framework will be developed with investment options that the Electric Cooperatives may consider for smart grid upgrading. Capacity-building activities are integrated accordingly to ensure the sustainability of the project outputs and that they can be replicated for future asset management. Ultimately, this TA will demonstrate smart grid transformation with increased RE adoption and enabling demand side management.
Under procurement
National Electrification Administration
Strategic Outcome 3: Extending Smart Grids
The project adopts the ESCO-in-a box® platform in the Philippines to support local ESCOs, by providing legal and financing tools and templates to facilitate transactions and by technical training and operational guidance. The ESCO-in-a-box, initiated by EP Group, is planned to be piloted in the Philippines and expanded in other countries of Southeast Asia. EP Group is one of ETP’s grantees under the Energy Efficiency Innovation Window.
Energy Pro Group
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Strategic Outcome 2: De-risking Renewable Energy and Energy Efficiency Investments
The assignment’s goal is to create a common understanding and vision for the BARMM energy sector development vis-a-vis its regional economic growth. It aims to understand the current power supply and demand scenarios, analyze existing energy policies, evaluate energy governance structure and relevant stakeholders, assess energy transition challenges, and identify drivers of energy transition. Ultimately, the assignment resulted to the development of the BARMM Power Sector Development Plan.
Aquatera, Ltd.
Energy Management and Development Services – Ministry of Environment, Natural Resources, and Energy (MENRE)
Strategic Outcome 1: Policy Alignment With Climate Commitments
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This technical assistance will support the Bangsamoro Government in establishing its energy planning process by formulating the BARMM Sustainable Energy Master Plan, highlighting how to effectively and strategically implement the judicious utilization of the Bangsamoro region’s renewable energy resources. It will include developing strategies for integrating low-carbon pathways in alignment with the region’s sustainable development goals and developing an energy investment plan framework. To ensure sustainability, there will be a strong focus on capacity-building activities and information transfer to the policymakers.
Centre for Energy Environment Resources Development Foundation
Ministry of Environment, Natural Resources, and Energy (MENRE) – Energy Management and Development Services
Strategic Outcome 1: Policy Alignment with Climate Commitments
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