http://myjournal.thepinoybigblogger.com/2011/08/30/solar-capacity-development-in -the-philippines.html/ A Position Paper by the People of Mindanao on the Solar Capacity Development in the Philippines A. Background 1.

There is a Power Capacity Shortage in Mindanao The demand for power in Mindanao is constantly increasing, however, no significa nt additional power generating capacities are expected within the next two to th ree years to address this problem.The power reserves are insufficient that even during the rainy month of July 2011, the National Grid Corporation of the Philip pines (NGCP) had to resort to load curtailment when one of the National Power Co rporation s (NPC) generating facilities conked out. The current Mindanao generation mix is still heavily dependent on the hydro plants, which are very vulnerable to changes in weather condition. 2. Renewable Energy Law was Enacted in December 2008 While the Renewable Energy Law (RE Law) was enacted in 2008, its implementation has been very slow despite the specific timetables provided in the law. Mindanao is blessed with areas suitable for harnessing renewable energy resources, the d evelopment of which could have been accelerated under the RE Law and consequentl y address the ailing Mindanao power condition. 3. Solar is the Fastest to Deploy to Address Mindanao Capacity Shortage Among the available renewable energy resources, solar photovoltaic (PV) technolo gy is the fastest to deploy as demonstrated in countries that adopt large-scale solar PV technology for utility applications such as the 70MW PV power plant in Italy, which was commissioned in only seven (7) months. Since at least 50% of Mi ndanao s energy needs are currently supplied by hydro power plants, solar will immed iately address the current capacity shortage and effectively complement the hydr o power plants, especially during the dry seasons. 4. Solar can be Cheaper than Fossil-fired Power Plants Based on National Renewable Energy Board (NREB) figures, adding 760 MW of renewa ble energy plants eligible for the proposed Feed-in tariff (FIT) will result to a rate impact of only P0.1050 per kWh, with solar contributing only P0.0114/kWh. The FIT rate impact is much less than the P0.50/kWh additional electricity paym ents experienced by the people of Mindanao at the height of power shortage in 20 10. Solar electricity production matches the daytime peak in Mindanao so it can displace oil-fired power plants or enable large hydro power plants to store and reserve water for the night time peak, resulting to savings in generation costs. Since most solar power plants are embedded in the distribution networks, solar power plants can mitigate transmission constraints in the grid and avoid transmi ssion costs. While the proposed solar FIT is P17.95/kWh, the rate impact as ment ioned above is only 1.14 centavos per kWh (at 50MWp solar capacity installed) wh en solar electricity generation is mixed with the other generating plants in the country; only the P0.0114/kWh shall form part of the Feed-in Tariff Allowance ( FIT-All) and billed to the consumers but not the P17.95/kWh FIT. In accordance with the ERC issued FIT Rules, the FIT-All attributable to the cur rently proposed renewable energy capacities is expected to decrease over the yea rs due to the increase of on-grid electricity consumption; while the same cannot be said for fossil-based power plants which are heavily dependent on the price of imported fuels.

The 1.14 centavos per kWh rate impact is only 11% of the total FIT rate impact; biomass and wind, on the other hand, get 39% and 32%, respectively, due to the h igher capacity targets allocated for biomass and wind. This unbalanced and discr iminatory allocation of target renewable capacity is contrary to the spirit and intent of the RE Law and deprives Mindanao of the immediate solution to the isla nd s current capacity shortage problems. 5. The Department of Energy (DOE) Endorsed only 50MW Solar Capacity for the Next Three Years The DOE has endorsed or certified only 50MW of solar capacity (both ground- and rooftop-mounted) for the entire country. On the other hand, it is claimed that, for Mindanao alone, not less than 150MW of solar projects are currently filed be fore the DOE. B. Our Position 1. The Mindanao Capacity Shortage Problem must be Addressed NOW Numerous power s ummits, conferences and press briefings had been conducted to address the Mindan ao power problem yet no new significant power plants have come on stream in Mind anao despite these initiatives. Mindanao demands concrete plans and directions t o address the Mindanao capacity shortage problem. Mindanao cannot again afford t o bleed economically for the next two or three years; power plant capacities in the grid must be immediately augmented. 2. Government to Increase Solar Capacity Targets Especially for Mindanao Conside ring the benefits of solar as discussed above we request His Excellency, Preside nt Benigno S. Aquino III, and the Honorable Secretary Jose Rene Almendras, to co nsider increasing the solar PV capacity targets, especially for Mindanao. A few centavos may be added due to the addition of renewable energy, however, this is far below the rate impact experienced in the past year even if there were no new capacities added to the grid. THE PEOPLE OF MINDANAO