Philippines

Upgrading Energy Regulations for the Energy Regulatory Commission of the Philippines

ETP is strengthening the capacity of the Philippine Energy Regulatory Commission to champion energy transition. Under this project, ETP identifies gaps and opportunities in the regulatory context, fosters renewable energy investments, battery energy storage and ancillary services, as well as enhances power quality and reliability. It also helps digitalise grids and integrate renewable energy technologies in the energy system to achieve the national energy sector targets and consumer satisfaction.

Implementing partners:

RICARDO AEA

In partnership with:

Energy Regulations Commission (ERC)

Strategic Outcome:

SO 1: Policy Alignment With Climate Commitments

Project documents:

Infosheet
Upgrading Energy Regulations for ERC First Interim Report
Upgrading Energy Regulations for ERC Second Interim Report
Upgrading Energy Regulations for ERC Third Interim Report
Upgrading Design and Implementation of Energy Battery Storage Market Mechanism of the Philippines Electricity Market_PPT
Upgrading Design and Implementation of Energy Battery Storage Market Mechanism of the Philippines Electricity Market Report

Focus Group Discussion:

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.

Focus Group Discussion Report_2023
Focus Group Discussion_Amendment to PGC
Focus Group Discussion_Amendment to PDC
Focus Group Discussion_Amendment to PSGG

Demand Side Management Policy

This Project contributes to aligning policies with climate targets. It will establish a DSM Policy and Program for the electric power industry for the reduction of energy demand by promoting a range of strategies that influence end-users to reduce electricity consumption, shift load patterns, and reduce peak demand. DSM will enhance distribution grids’ efficiency, enhance system flexibility and reliability, and delay the need for additional power plants. This project will strengthen the implementation of the policy by delivering capacity building and developing a DSM toolkit. The combined impact of reduced energy consumption and increased penetration of variable renewables to the grid will result in more significant GHG emissions reduction and displace fossil-fuel based power generation.

Implementing partners:

SO 1: Policy Alignment With Climate Commitments

In partnership with:

Strategic Outcome:

-

Project documents:

Concept Note

Smart Grid Transformation in the Power Distribution Sector

This project will identify the key issues and propose solutions to smart grid adoption on the power distribution side, which can allow for more variable RE in the network. It will present a financing framework and 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 in future smart grid upgrades. Ultimately, this project aims to resolve key smart grid issues, which currently prohibit the uptake of RE.

Implementing partners:

In partnership with:

Strategic Outcome:

SO2: De-risking Renewable Energy and Energy Efficiency Investments

Project documents:

Concept Note

Offshore Wind Development

ETP will support the implementation of the Philippine offshore wind roadmap by developing a marine spatial planning tool for offshore wind, assisting the formulation of a streamlined permitting and consenting process, and providing capacity building to stakeholders. This work may be extended to other marine renewables, including ocean tidal and floating solar.

Implementing partners:

In partnership with:

Strategic Outcome:

SO 1: Policy Alignment With Climate Commitments

Project documents:

Concept Note

ESCO-in-a-Box

The project will establish 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.

Implementing partners:

Energy Pro Group

In partnership with:

Strategic Outcome:

SO2: De-risking Renewable Energy and Energy Efficiency Investments

Project documents:

Concept Note
Philippines Energy Service Company (ESCO) Market Research Report

Philippines Grid Diagnostic and Roadmap for Smart Grid Development

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.

Implementing partners:

RICARDO-AEA Limited

In partnership with:

Department of Energy

Strategic Outcome:

SO3: Extending Smart Grids

Power Sector Development Roadmapping in Bangsamoro Autonomous Region in Muslim Mindanao (BARMM)

The assignment's goal is to create a plan for the power development of the BARMM region. It aims to understand the current power supply and demand scenario, analyze existing energy policies, evaluate energy governance structure and relevant stakeholders, assess energy transition challenges, and identify drivers of energy transition. Ultimately, the assignment seeks to initiate the drafting of the BARMM power sector development plan.

Implementing partners:

Aquatera, Ltd.

In partnership with:

Energy Management and Development Services – Ministry of Environment, Natural Resources, and Energy (MENRE)

Strategic Outcome:

Strategic outcome 1: Policy Alignment With Climate Commitments

Investment Grade Audit Program

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 program is led by Climargy, which is one of ETP’s grantees under the Energy Efficiency Innovation Window.

Implementing partners:

Climargy

In partnership with:

Strategic Outcome:

SO2: De-risking Renewable Energy and Energy Efficiency Investments

Upgrading Design and Implementation of the Energy Battery Storage Market Mechanism of the Philippines Electricity Market Mechanism

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.

Implementing partners:

NEL Consulting

In partnership with:

Philippines Electricity Market Corporation

Energy Regulatory Commission of the Philippines;Department of Energy

Strategic Outcome:

SO1: Policy Alignment with Climate Commitments

Project documents:

Concept Note
Final Report

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Pipeline of Projects

Policy Alignment with Climate Commitments:

Strengthening Coordination Capacity with Capacity Building

Review of Mitigating Measures in Electricity Spot Market

Carbon Pricing and Taxation Studies

De-risking Renewable Energy and Energy Efficiency Investments:

Assessment of Ocean Energy Options in the Philippines

Optimizing New Renewable Energy in the Energy Mix (e.g., Marine Renewable Energy Roadmap)

Development of Marine Spatial Planning System Aligned with the Good International Industry Practice

Offshore Wind Mapping of the Required Permits for Offshore Development

Cost Reduction, Policy and Regulatory Support to Offshore Wind Development

Project Financing Review - Power Purchase Agreements, Feed in Tariffs Contracts for Difference

Assessment of Pump Hydro and Seawater Energy Storage Potential

Energy Efficiency Program for Small and Medium-Sized Enterprises

Development and Enhancement of the Energy Efficiency Online System

Demand Side Management Program

Sustainable and Resilient Infrastructure Development - Smart Grids:

Clean Energy Access into Local Grids for Local Government Units

Knowledge, Skills, Awareness and Capacity Development:

Leadership Development: Bankers’ Training

Development of Training Programs and Competency Standards for Wind

Capacity Building on OSW Environmental and Social Impact Assessment (ESIA)

Review of Quality, Health, Safety and Environmental Requirements for Wind Turbines

Capacity Building on EE for EUMB Staff (Technologies, Business Models)

Study on Integration of Local Component to OSW Projects