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NET METERING
• Click to edit Master Fortunato
text styles S. Sibayan
• Second
Solarleveland Wind Energy Management Division
• Third level
• Renewable
Fourth level Energy Management Bureau
• Fifth level

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LEGAL FRAMEWORK
RA 9513: Renewable Energy Act of 2008
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level

Accelerate the development of the country’s renewable energy resources by providing

fiscal and non-fiscal incentives to private sector investors and equipment
manufacturers, fabricators, suppliers.
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POLICY MECHANISMS
Non-Fiscal Incentives
• Click to edit Master text styles
• Second
Creation
level of RE Market
• Third level
Renewable Portfolio Standard (RPS)
• Fourth level
 Off-Grid Development
• Fifth level

 Guaranteed long-term fixed price

 Feed-in Tariff
 Other Market Options
 Net Metering
 Green Energy Option

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LEGAL BASIS
Section 7 of RA No. 9513 Implementing Rules & Regulations (IRR)
defines:
• Click to edit Master text styles
• Second level
 Net Metering is a consumer-based RE incentive scheme (net-
• Third level
user only)
• Fourth level
• Fifth level
 Purpose : to encourage end-users to participate in RE
generation for own use
 Mandate : Upon request by distribution end-users, the DUs
shall, without discrimination, enter into a net-metering
agreements with qualified end-users who will be installing RE
system, subject to technical and economic considerations

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LEGAL BASIS
• Click to edit
Section 10Master of text styles9513 and Section 7 of its
R.A.
• Second level
Implementing
• Third level Rules & Regulations (IRR) provides that
• Fourth level
the Energy •Regulatory
Fifth level Commission (ERC), in consultation
with National Renewable Energy Board (NREB), shall
establish the net-metering interconnection standards
and pricing methodology.

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LEGAL BASIS
 ERC Resolution No. 9, Series of 2013 - A Resolution Adopting the Rules
• ClickEnabling
to edit Master text stylesProgram for Renewable Energy
the Net-Metering
• Second level
 Components:
• Third level
 •Rules
FourthEnabling
levelthe Net-Metering Program (Annex A)
• Fifth level
 Net-Metering Interconnection Standards (Annex A-1)
 Net-Metering Agreement Template (Annex A-2)

 Approved on May 27, 2013

 Effectivity on July 24, 2013

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NET METERING FOR RE

•• Click to edit Master text styles
Refers
• Second level
to a RE system, appropriate for
distributed
• Third level
• Fourth level
generation, in which distribution
grid user has a two-way connection to the
• Fifth level

grid and is only charged or credited, as the

case maybe, the difference (net) between its
import energy and export energy.

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DISTRIBUTED GENERATION
• Click to edit Master text styles
• • Refers
Second level to a system of small generation
• Third level
entities supplying directly to the distribution
• Fourth level
• Fifth level
grid, any one of which shall not exceed one
hundred kilowatts (100 kW) in capacity, as
defined in Section 4(j) of R. A. No. 9513.

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INTERCONNECTION SET-UP
Two-way connection
Two uni-directional meters
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
Import

Export

Max. Capacity = 100 kW

Situated within the premises of Third meter
a qualified end-user (QE)

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NET METERING SETUP
Two-way connection
Bi-directional meter
• Click to edit Master text styles
• Second level
• Third level
• Fourth level Import
• Fifth level

Export

Max. Capacity =100 kW

Situated within the premises of
a qualified end-user (QE) Second meter

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Scope, Applicability, & Qualification
• Click
Applicable to on-grid RE systems
to edit Master text styles
 End-user
• Second level should be in good credit standing in the
• Third level
payment • Fourthoflevelelectric bills to the distribution utility (DU).
• Fifth level
 RE systems such as wind, solar, biomass or biogas
energy systems or such other RE systems capable of
being installed within the qualified end-user’s premises
are eligible to participate in the net metering program.

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Scope, Applicability, & Qualification
• Click
Theto editRE Master System must be compliant with the
text styles
• Second level
standards
• Third level
set in the Philippine Electrical Code (PEC),
Philippine
• Fourth levelDistribution
• Fifth level
Code (PDC), Distribution
Services and Open Access Rules (DSOAR) and the
Net-Metering Interconnection Standards (NMIS).

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Pricing Methodology
 Interim (temporary/provisional) pricing for export
• Click to edit Master text styles
• energy
Second levelis the DU’s monthly charge based on its
blended
• Third level generation cost.
• Fourth level
• Fifth level
 This cost shall be automatically included in the
DU’s total generation cost to be recovered from all
its customers as part of the adjusted generation
rate pursuant to Section 2 of ERC Resolution
No. 19, Series of 2009

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Pricing Methodology
Export rate

• Click to edit Master text styles P4.9101/kWH

• Second level
• Third level
• Fourth level
• Fifth level

Generation Transmission

P9.4291/kWH
Import rate
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Net Metering Charge
• Click
Netto editmetering charge is equivalent to
Master text styles
•PhP/customer/month
Second level supply and metering rates;
• Third level
plus • the ERC-approved PhP/kWh metering rate
Fourth level
• Fifth level
based on export energy.

 DUs may file for a different net metering charge, if

necessary.

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Billing Charge
Billing Charge:
• Click to edit Master text styles
PhP for import energy
• Second level
Less: •PhP export energy
Third level
• Fourth level
PhP credited
• Fifth level in previous month
Net/Difference in Php (+ or -)

If positive: QE shall pay this amount to DU

If negative: DU shall credit this amount to QE’s next bill

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HOW TO OPTIMIZE A NET METERING CONNECTION?
• It shall displace relatively high consumer rate (import cost) of the DUs , that is:
• Click to edit Master text styles
• Annual gross benefit of the project is equivalent to the annual savings generated. It is
• Second
computed level
by multiplying the annual total generation with the import cost
• Third level
• Fourth level
• Type of usage : •Net user on a monthly basis
Fifth level

- Capacity (kWp) can supply the minimum daytime consumption even during low
irradiation months (July to January);
- generation during the high irradiation months is less than the maximum daily energy
requirement

• The system is used to displace the minimum daily energy requirement.

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SAMPLE CALCULATION
• Site is Manila (NAIA) • Economic life : 20 years
• The system is to be used 12/7 annually; • 100% loan at annual interest rate of 10%
• Click
• Daily to edit
minimum Master(daytime)
electricity text styles payable in 5 years
need :• 10 kWH/day
Second level • Annual amortization : P55,397.47
• Minimum•Irradiation
Third level : 4.5 kWH/m
2
• Displaced cost (MERALCO consumer price
• Global Irradiation : 1 kWH/m
• Fourth level 2
of electricity) : P11.00/kWH
• Optimum capacity• (kWp) : 3 kWp
Fifth level • Projected annual savings : P46,253.00
• Annual generation at 16% capacity • NPV : P647,896.00
factor : 8,410 kWH • Project IRR : 14%
• Installed Cost/kWp : P70,000.00/kWp x • Breakeven Year : 7th year
3 = P210,000.00 • The levelized cost of electricity (LCOE) :
P1.41/kWH

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SAMPLE CALCULATION
• Site is Manila (NAIA) • Economic life : 20 years
• The system is to be used 12/7 annually • 100% loan at annual interest rate of 10%
• Click
• Daily to edit
minimum Master
electricity text styles
(daytime) need : payable in 1.5 years
• Second level
1 kWH/day • Annual amortization : P23,645.84
• Third level: 4 kWH/m2
• Minimum Irradiation • Displaced cost (MERALCO consumer price
• Fourth level of electricity) : P11.00/kWH
• Global Irradiation : 1 kWH/m2
• Fifth level
• Optimum capacity (kWp) : 350 Wp • Projected annual savings : P5,396.16
• Annual generation at 16% capacity factor : • NPV : P41,034.00
490.56 kWH • Project IRR : 11%
• Installed Cost/kWp : P100,000.00/kWp x .35 • Breakeven Year : 8th year
= P35,000.00 • The levelized cost of electricity (LCOE) for
20 years : P0.94/kWH

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Net Metering
• Click to edit Master text styles
• Second level
Interconnection Standards
• Third level
• Fourth level
• Fifth level

Annex A-1

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Interconnection Standards
 General Guidelines
• Click to edit Master text styles
• Second level Application for Interconnection
• Third level
 level
• Fourth System Parameters
• Fifth level
 System Protection
 Operations & Maintenance
 Metering
 Testing and Commissioning

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General Guidelines
 Design, installation, operations and maintenance shall be in consultation
•with
Clickthe
to DU,
editsince
Master all text styles
specifications shall be of DU’s standards.
• Second level
 System requirements shall be met at the Connection Point.
• Third level
 The DU shall only
• Fourth levelallow interconnection of RE facilities with up to 100kW
capacity per •QE Fifth level
account.
 The DU shall conduct inspections and shall remove the generation from
DU system at any time due to maintenance, test, repair and emergency
conditions.
 QE to be liable for any damages of the DU should the QE execute changes
to the RE facilities without first informing the DUs.

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Application for Interconnection
QE to
QE to complete and
send DU to
file an application.
a•letter
Click to edit Master text styles
provide information
• Second
requesting DU level
for to QE.
• Third level
interconnection.
• Fourth level
• Fifth level

Ifyes:
Pro forma agreements
DU to determine DU to acknowledge
DU Application form
shall whether DIS and/or within ten (10)
provide• DescriptionDAS of proposed
is connection business days from
results of study.• Relevant Standard Planning Data
necessary. receipt.
• Other data required by DU
• Completion date
DU, with  Technical requirements
 Specifications QE and DU
QE to
to enter
 Listing of certified equipment
conduct
 Application fee into a Net-Metering
information
on-site
 Applicable rate schedulesAgreement.
inspection.
Department of Energy  Metering requirements
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System Parameters
 Voltage Level - should be the same level as the DU with automatic method
of disconnecting.
• Click to edit Master text styles
 Frequency – 60 Hz with automatic method of disconnecting.
• Second level
 Power• Quality
Third level
 Limitation
• Fourthoflevel
direct current (DC) injection – not to inject direct current
• Fifth level
greater than 0.5% of the full load rated output current at connection
point.
 Flicker severity – not to exceed 1.0 unit for short term (ST) and 0.8 units
for long term (LT).
 Harmonics – within limits in Sec. 3.2.4 of Philippine Distribution Code
(PDC)
 Power Factor – not less than 85% lagging measured at the Connection Point.

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System Protection
 Synchronization – QE to provide synchronizing devices with typical limits in
the Net Metering Standards.
 •Islanding
Click to edit
– QEMaster
systemtext styles
should detect islanding and disconnect within 2
• Second level
seconds from formation.
• Third level
 Integration withlevel
• Fourth DU’s Distribution System Grounding – shall be grounded in
accordance to • Fifth
Philippine
level Electrical Code (PEC).
 Protective Control Devices
 Disconnect device – visible for use by the DU within 10 feet from
connection point.
 Protective relays – protective relays provided in Net Metering (NM)
Standards
 Reclosing – immediate disconnection from the DU system when the
system is down.

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Operations & Maintenance
 Facility should operate in parallel with the DU.
• Click to edit Master text styles
 QE• Second
mustlevel inform the DU if it is going to synchronize.
• Third level
 If the• Fourth DUlevel system is down, the facility should
• Fifth level
automatically disconnect.
 QE to provide DU with contact numbers.
 QE shall maintain the facility in a safe manner as
approved by the DU.

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Metering
 MSP shall own and shall be responsible for the
•operations
Click to edit Master and text styles
maintenance of the meter in
• Second level
accordance
• Third level with Sec. 2.11 of Distribution Services and
• Fourth level
Open Access Rules (DSOAR).
• Fifth level

 QE to provide space for the metering facilities.

 Metering facilities shall be installed in an accessible
and visible area for reading and testing of both QE and
DU.

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Testing & Commissioning
 Commissioning test shall be Commissioning Test shall
• Click to edit
conducted Master
after thetext styles include the following:
• Second level system is
interconnection  Verification and
• Third level
installed. • Fourth level inspections
• Fifth level
 DU has the right to witness the  Production Test
testing and commissioning.  Response to
abnormal voltage
 RE facility shall be equipped with
 Response to
whatever equipment is required
abnormal frequency
to perform the test.
 Synchronization
 Unintentional islanding
functionality test
 Cease-to-energize
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28
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Net Metering Agreement

• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level

Annex A-2

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Net Metering Agreement
Parties: DU and Qualified End-user (QE)
• Click to edit Master text styles
Mirrors
• Second the
levelprovision in the Rules Enabling the Net-Metering
Program (i.e.
• Third levelCompliance Standards, Interconnection Set-Up, DU
• Fourth level
Inspection, •MeterFifth level Readings, Pricing and Other Charges).

To be submitted to ERC, DOE & NREB within 5 days from

execution.

Deemed approved and effective upon submission to ERC.

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GOVERNMENT INITIATIVE
DOE Project: Net Metering Demonstration in Private Academic Institutions
• Click:toDisplace
Objective edit Masterdaytime textload
styles
Target Area
• Second: Metro
level Manila
Consumer•Electricity
Third level Rate : PhP 11.50
• Fourth level
Financing Scheme : PV Suppliers at no initial cost to the school
• Fifth level
Payment Scheme : PhP 9.500/kWh for 14 years
Status :
• Three (3) schools
1. La Consolacion College : 133 kWp
2. MLQU : 96 kWp
3. St. Scholastica College : 96 kWp

Total Capacity : 325 kWp

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WHERE ARE WE NOW?
• Click to edit Master text styles
•92%
Secondislevel
in
• Third level
MERALCO
• Fourth level
• Fifth level

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WHERE ARE WE NOW?
• Click
ERCto edit - Master
engaged a consultant to conduct a
text styles
• Second level
net-metering study (on pricing methodology) on July
• Third level
2016 • Fourth level
• Fifth level

 The ERC came out with proposed amendments to

the Net-Metering Rules in August 2016

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WHERE ARE WE NOW?
 The following were the current issues covered in the
• Click
proposed Amendments:
to edit Master text styles
• Second level
• Third level
1. Whether
• Fourth levelor not the lifeline rate should apply to Qualified
End-users.
• Fifth level

2. Whether the mechanism of merely accumulating the

credits of net exports on the customer bill, is reasonable.

 The ERC will consolidate all amendments based on the study

and the comments gathered.

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 Thank You!

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#KuryenteMo #eGenerateMo

(+632) 479-2900
[email protected]
www.doe.gov.ph
//doe.gov.ph
@doe_ph

Department of Energy
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