Introduction to Solar Energy

Development

MODULE 1
 Why Are We Studying Solar Energy?

1. Globally, we are focused on fossil fuels but we are throwing and wasting
away our energy earnings, i.e., the direct energy from the sun;
2. Fossil-based fuels are rapidly depleting and we need to think, prepare
and be ready of our future energy needs when fossil fuel is gone;

3. The world still lack large-scale energy alternatives to fossil fuels that are
cheap, safe, and sustainable and the world is still far away from a
solution to the world's energy problem;
 Why Are We Studying Solar Energy?

4. Solar energy is the main source of energy, the fossil-based fuels

including other forms of energy such as wind, biomass, ocean, and
hydro energy resources are all considered indirect forms or by-product
of solar energy;
5. The world faces two problems: 1.) most of our energy production still
produces greenhouse gas emissions, and; 2.) Urban and global
development demand more access to energy thereby depleting further
our energy capital;
 Why Are We Studying Solar Energy?

Finally:
The students’ knowledge of global energy situations is crucial as it
equips them with the information and skills needed to address
environmental challenges, promote energy security, understand
economic dynamics, engage in technological innovation, live
sustainably, influence policy decisions, and explore diverse career
paths.
 Situationer: The Global Warming and Energy Utilization
▪ Climate change describes global warming, the
ongoing increase in global average
temperature and its effects on Earth's climate
system.
▪ The current rise in global average temperature
is primarily caused by humans, burning fossil
fuels since the Industrial Revolution.
▪ Fossil fuel use, deforestation, and some
agricultural and industrial practices add to
greenhouse gases.
▪ These gases absorb some of the heat that the ▪ Carbon dioxide, the primary greenhouse gas
Earth radiates after it warms from sunlight, driving global warming, has grown by about 50%
warming the lower atmosphere. and is at levels unseen for millions of years.
 Climate Forcings and Global Warming
► Any changes to the Earth’s climate system that
affect how much energy enters or leaves the
system alters Earth’s radiative equilibrium and can
force temperatures to rise or fall. These
destabilizing influences are called climate forcings.
► Natural climate forcings include changes in the
Sun’s brightness, Milankovitch cycles (small
variations in the shape of Earth’s orbit and its axis
of rotation that occur over thousands of years),
and large volcanic eruptions that inject
light-reflecting particles as high as the
stratosphere.
 Climate Forcings & Global Warming
Aerosols are tiny particles in the air
that produced in burning fossil fuels
(coal, petroleum, wood and biofuels).
A significant man-made source of
aerosols is pollution from cars and
► Manmade forcings include: factories.

▪ particle pollution (aerosols), which absorb and reflect

incoming sunlight;
▪ deforestation, which changes how the surface reflects
and absorbs sunlight, and;
▪ the rising concentration of atmospheric carbon dioxide
and other greenhouse gases (burning fossil fuels), which
decrease heat radiated to space.
► The absorption of outgoing thermal infrared by carbon
dioxide means that Earth still absorbs about 70 percent of
the incoming solar energy, but an equivalent amount of heat
is no longer leaving. The exact amount of the energy
imbalance is a little over 0.8 watts per square meter.
 Situationer: Greenhouse Gases in the Atmosphere
► In 2010, the world emitted some 49 billion metric tons of greenhouse gases,
thanks largely to increased coal burning in countries such as China.
► The initial IPCC report in this series, released last September, 2014 noted that
the atmosphere could bear only 800 to 1,000 billion metric tons of greenhouse
gases, in order to restrain global warming to 2oC Celsius by century's end. The
world has already emitted in total roughly 515 billion metric tons.
► The IPCC suggests that atmospheric concentrations of greenhouse gases
should not exceed 450 ppm to hold temperature rise to 2oC or less. Already,
atmospheric concentrations of just CO2 have reached 400 ppm at times and all
greenhouse gases put together are now at 430 ppm. As a result, global
average temperatures have already increased by 0.85oC.
IPCC – Intergovernmental Panel on Climate change - www.scientific American.com
 Situationer: Drivers of Greenhouse Gas Emissions

► "Economic and population growth are drivers for emissions and they have
outpaced the improvements of energy efficiency," said Ottmar Edenhofer,
economist at the Potsdam Institute for Climate Impact Research in Germany
and co-chair of Working Group III of the IPCC.

► Restraining global warming to no more than 2 degrees Celsius will require

changing how the world produces and uses energy to power its cities and
factories, heats and cools buildings, as well as moves people and goods in
airplanes, trains, cars, ships and trucks, according to the IPCC. Changes are
required not just in technology, but also in people's behavior.
 Situationer: Skewed Global Energy Utilization
1. It is clear that the world has been using the energy capital (fossil fuels) at
unsustainable rates over the last 100 years while throwing away our energy
earnings, the direct energy from the sun. Mechanical power is derived from
our reserves of energy, and we are squandering our energy capital quite
recklessly.
2. As we move toward the future, solar energy will play greater role in producing
our required energy, hence, students should be aware of these facts to plan
their career and align themselves in the field of science and engineering,
particularly of solar energy. It is becoming extremely important and urgent.

A fossil fuel is a hydrocarbon-containing material such as coal, oil, and natural gas, formed naturally in the Earth's crust from the remains of dead plants and animals.
 Situationer: World’s Fossil Fuel Utilization

The total remaining

recoverable resources
could be achieved but
on how much?

Notes: All bubbles are expressed as a number of years of production based on estimated production in 2013. The size of the
bubble for total remaining recoverable resources of coal is illustrative and is not proportional to the others. The figure specifies the
status of reserves for coal as of end-2011, and gas and oil as of end 2012.
Sources: BGR (2012); O&GJ (2012); USGS (2000, 2012a and 2012b); IEA estimates and analysis.
 Situationer: The Global Energy Utilization
FACTS:
▪ Global energy consumption is rapidly increasing and is expected to continue to
grow over the next 50 years.
CAUSES:
▪ Increased rates of industrialization in North America, Europe, and Japan;
▪ Rapid increase of energy demand from China and India as they represent
one-third of the world’s population, and the effect of human activities on
global climate change.
▪ The total primary energy demand in the world increased from 5,536 million
tons of oil equivalent (MTOE) in 1971 to 10,345 MTOE in 2002, representing
an average annual increase of 2%;
 Situationer: The Global Energy Utilization

▪ In 2008, the world energy demand had increased to 12,271 MTOE,

representing an average annual increase of approximately 3%.
▪ The main reason for a 50% increase in the annual rate is the fast-growing
energy demand in China and India due to high energy rate of these most
populous countries in the world;
▪ The deep recession in the United States and Europe in 2008, dropped the
energy use to approximately 2.1%, and even at a 2% increase per year, the
primary energy demand of 12,271 MTOE in 2008 would double by 2043 and
triple by 2063.
 Points to Ponder – depleting fossil fuels

▪ Those that anticipate global energy developments

successfully can derive an advantage, while those
that fail to do so, are risking making poor policy and
investment decisions.

‒ International Energy Agency

▪ IEA
Situationer: The Global Energy Utilization
 Primary Global
Energy Consumption Renewables

2022 (5/7)
Hydro
Electric
Nuclear
Energy
The world remains heavily reliant on
Oil
fossil fuels for energy needs, even as
renewables like solar and wind
continue rapid growth.
▪ While renewable power expanded at Coal
record rates; fossil fuels maintained
an 82% share of total primary energy
consumption. Natural
▪ solar and wind reaching a 7.5% Gas
share of primary energy
consumption.
Source: Forbes
Fuel Shares in World Total Primary Energy Supply
(7/7)

Source Share % 2011 Share % 2022

Oil

Oil 31.4 31.6

Natural Gas 21.3 23.5
Coal 28 26.7
Nuclear Energy 5.2 4.0
Renewables 13.2 14.2

Source IEA, World Energy Outlook 2013, International Energy Agency, Paris, France 2013
 Situationer: Global Policy Initiatives
1st Initiative - 1997
Kyoto Protocol, an international treaty, named for
the Japanese city in which it was adopted in
December 1997, that aimed to reduce the emission
of gases that contribute to global warming. In force
since 2005, the protocol called for reducing the
emission of six greenhouse gases in 41 countries
plus the European Union to 5.2 percent below 1990
levels during the “commitment period” 2008–12. It
was widely hailed as the most significant
environmental treaty ever negotiated, though some Did the world achieved
critics questioned its effectiveness. Kyoto Protocol Initiative?
 Actions Taken: Kyoto Protocol

• The Kyoto Protocol required only developed

countries to reduce emissions,
• The Kyoto Protocol did not compel developing
countries, including major carbon emitters China
and India, to take action.
• The United States signed the agreement in 1998
but never ratified it and later withdrew its
signature.
Did the world achieved
Kyoto Protocol Initiative?
Summary: (3/3) What
Happened to
Kyoto Protocol
 Situationer: Global Policy Initiatives
2nd Initiative - 2015
The Paris Agreement is a legally binding international
treaty on climate change. It was adopted by 196
Parties at the UN Climate Change Conference
(COP21) in Paris, France, on 12 December 2015. It
entered into force on 4 November 2016.
Its overarching goal is to hold “the increase in the
global average temperature to well below 2°C above
pre-industrial levels” and pursue efforts “to limit the
temperature increase to 1.5°C above pre-industrial
levels. (1750 - 1800)”
 Actions Taken: Paris Agreement

The Paris Agreement, has recognized that climate

change is a shared problem and called on all
countries to set emissions targets. Thus, the Paris
Agreement, which has 194 Parties, requires all
countries to reduce their emissions. Governments
set targets, known as nationally determined
contributions (NDC), with the goals of preventing the
global average temperature from rising more than 2°
C above preindustrial levels and pursuing efforts to
keep temperature rise below 1.5°C.
 Actions Taken: Paris Policy Initiatives
Fossil and non-fossil energy supply by scenario, 2020-2050

There is an orderly
process of change in
the global fuel mix in
all WEO scenarios, with
the main
differentiating feature
being the rapidity of
transition from fossil
fuels
WEO – World Energy Outlook
STEPS - Stated Policies Scenario
NZE - Net Zero Emissions by 2050
APS - Announced Pledges Scenario
 Actions Taken: Paris Policy Initiatives
Energy-related and process CO2 emissions, 2010-2050 and
temperature rise in 2100 by scenario

Policy and technology

advances since 2015
have shaved 1°C off
the temperature rise in
2100 but stated
policies still lead to a
temperature rise well
above the Paris
Agreement goals.

STEPS - Stated Policies Scenario

NZE - Net Zero Emissions by 2050
APS - Announced Pledges Scenario
An updated roadmap to Net
Zero Emissions by 2050 Energy
transition for 1.5 °C
Net Zero – it applies to a
situation where global
greenhouse gas emissions
from human activity are in
balance with emissions
reductions. At net zero,
carbon dioxide emissions are
still generated, but an equal
amount of carbon dioxide is
removed from the
atmosphere as is released into
it, resulting in zero increase in
net emissions.
 How CO2 is Eliminated in the Atmosphere
The latest climate model
scenarios show that all pathways
that keep temperature rise to 1.5oC
(with little or no overshoot) require
carbon removal. Estimates,
including both natural and
technological carbon removal
approaches, range from 5 to 16
billion metric tons per year globally
by 2050. (For context, the United
States emitted just over 6 billion
metric tons of greenhouse gases in
2021.) The faster the world
reduces its emissions in the near
term, the less it will have to rely on
carbon removal.
 Actions Taken: Global Energy Investments

Global energy
investment in
clean energy and
in fossil fuels,
2015-2023

• Fossil Fuels
• Clean Energy
Source: IEA. License: CC BY
4.0 Last updated 22 May
 Actions Taken: Transport Sector
Energy use in transport by scenario, 2000-2050

Transport has long

been the bedrock of
oil demand, but its role
weakens in the APS
and NZE Scenario as
electricity displaces
very large volumes of
oil

STEPS - Stated Policies Scenario

NZE - Net Zero Emissions by 2050
APS - Announced Pledges Scenario
 Actions Taken: Effect on Global
EmploymentGlobal employment in fossil fuels and clean energy

Clean energy
employment makes up
just over half of the
energy workforce
today and this share
rises significantly in
both the APS and the
NZE Scenario.

STEPS - Stated Policies Scenario

NZE - Net Zero Emissions by 2050
APS - Announced Pledges Scenario
 Situationer: The CO2 Build-up
Monitoring the CO2 build-up
Records derived from ice core
measurements show that the average
global CO2 concentration in the
atmosphere for 1750 to 1800 was
around 278ppm. This is the value that
the Intergovernmental Panel on
Climate Change (IPCC) used as the
pre-industrial baseline for CO2.
Atmospheric CO2 has been rising
ever since – driving ongoing
warming of the global climate. Now, in
March 2021, levels have reached
around 417ppm – a 50% increase
over the 1750-1800 average.
 417
ppm

In 1950 the world emitted 6

billion tonnes of CO2. By 1990
this had almost quadrupled,
reaching more than 20 billion
tonnes. Emissions have
continued to grow rapidly; in
2020 we are emitting over 35
billion tonnes each year or
417 ppm of CO2.

278
ppm
 Summary: Roadmap to Net Zero Emissions by
2050
1. In 2021, emissions rose by a record 1.9 Gt to reach 36.6 Gt, driven by
extraordinarily rapid post‐pandemic economic growth, slow progress in
improving energy intensity, and a surge in coal demand even as renewables
capacity additions scaled record heights.
2. Recent investment in fossil fuel infrastructure not included in our 2021 NZE
Scenario would result in 25 Gt of emissions if run to the end of its lifetime
(around 5% of the remaining carbon budget for 1.5 °C).
3. Between 2021 and 2030, low emissions sources of supply grow by around
125 exajoule (EJ) in the NZE Scenario. This is equivalent to the growth of
world energy supply from all sources over the last fifteen years.
 Summary: (2/3)

4. Among low emissions sources, modern bioenergy and solar increase the
most, rising by around 35 EJ and 28 EJ respectively to 2030. Over the period
to 2050, however, the largest growth in low‐emissions energy supply comes
from solar and wind.
5. By 2050, unabated fossil fuels for energy uses account for just 5% of total
energy supply: adding fossil fuels used with carbon capture utilization and
storage (CCUS) and for non‐energy uses raises this to slightly less than
20%.

An exajoule is a unit of energy, and it is equivalent to one quintillion joules. To count the number of zeros in an
exajoule, we can write it out as a number: 1,000,000,000,000,000,000 joules. There are 18 zeros in one
exajoule.
 Summary: (3/3)

6. In the NZE Scenario, electricity becomes the new linchpin (key player) of the
global energy system, providing more than half of total final consumption and
two‐thirds of useful energy by 2050.
7. Total electricity generation grows by 3.3% per year to 2050, which is faster
than the global rate of economic growth across the period.
8. Annual capacity additions of all renewables quadruple from 290 GW in 2021
to around 1,200 GW in 2030.
9. With renewables reaching over 60% of total generation in 2030, no new
unabated coal‐fired plants are needed.
 Overview of key assumptions and energy prices
in the New Policies Scenario
Notes:

• World population
continuously
increases of 0.9%
per year to 8.7
billion in 2035
• Fossil Fuel subsidies
are phased-out in
all net importing
regions within 10
yrs.
• Cost reduction for
energy
technologies
approaching
commercialization
Update: 2024

Is the Global Actions Enough

to Mitigate the Global
Warming?
 Global CO2 Emissions by Sector, 2022
Oil emissions grew
Emissions from oil grew by 2.5% (or 268 Mt)
to 11.2 Gt in 2022. Around half of the
year-on-year increase came from aviation
as air travel continued its recovery from
pandemic lows
Total transport emissions increased by 2.1%
(or 137 Mt), also driven by growth in
advanced economies.
The largest absolute sectoral increase in
emissions in 2022 was from electricity and
heat generation. Electricity and heat sector
emissions increased by 1.8% (or 261 Mt),
reaching an all-time high of 14.6 Gt.
Gas-to-coal switching in many regions was
the main driver of this growth:
Global CO2 Emissions Annual Changes
 Just How Much CO2 in a ton of
Emission
► The average people generates 16 tons of CO2 a year through driving,
shopping, using electricity and gas at home, and generally going through the
motions of everyday life.
► To further put that emission in perspective, you would generate one ton of CO2
by driving your average 22 mpg car in a distance of about 3,618 Km.
► 1 KWh produce and/or consumed, the equivalent CO2 emission is 0.000699
metric tons, or 1MWh is equal to 0.699 metric tons.
COP 28
WHAT WAS ACHIEVED AND WHAT HAPPENS NEXT?
 The Delegation:

► The COP28 UN Climate Change Conference in Dubai, the United

Arab Emirates, was the biggest of its kind. Some 85,000
participants, including more than 150 Heads of State and
Government, were among the representatives of national
delegations, civil society, business, Indigenous Peoples, youth,
philanthropy, and international organizations in attendance at the
Conference from 30 November to 13 December 2023.
 COP 28 Decisions

► COP28 was particularly momentous as it marked the conclusion of the

first ”global stocktake” of the world’s efforts to address climate change
under the Paris Agreement.
► Having shown that progress was too slow across all areas of climate
action – from reducing greenhouse gas emissions, to strengthening
resilience to a changing climate, to getting the financial and technological
support to vulnerable nations – countries responded with a decision on
how to accelerate action across all areas by 2030.
▪ This includes a call on governments to speed up the transition away from
fossil fuels to renewables such as wind and solar power in their next round
of climate commitments.
 Update: 2024 – World Energy Forum

► The 1.5°Celsius ambition is slipping out of reach. As highlighted

in The State of Climate Action in November, achieving 1.5°C would
now require an annual emissions reduction of around 7% globally,
more than the impact from COVID-19 and against a trend of +1.5%
per year. While the path keeps getting steeper, progress in climate
action remains insufficient, from national and corporate
commitments and actions to green-technology scaling and funding.
- World Energy Forum, January 2024
 Update: 2024 – World Energy Forum

► Adaptation will not be sufficient. Dramatic, immediate mitigation

action is needed against every tenth of a degree of warming.
COP28 showed new impactful steps:
1. The need to transition away from fossil fuels;
2. Commitments to triple renewable energy and double energy
efficiency by 2030, and;
3. To raise more funding for loss and damage and mitigation in the
Global South. (new term for under develop and developing countries)
 Update: 2024 – World Energy Forum

► While ever more action is being taken, the sum is still insufficient.
Substantial systemic constraints persist, such as high costs and
interest rates, low willingness to pay, or a lack of stable regulations.
This calls for businesses and governments to quickly shift from
incremental actions to those that can transform systems, thereby
overcoming these obstacles and enabling exponential impact.
 Update: 2024 – World Energy Forum

► Governments need to rewrite the rules

▪ They can set bolder and more near-term ambitions. They have the
power to support leaders and penalize laggards. They can change the
context for companies – and entire societies – with smart policies and
better purchasing, and through pricing externalities, supporting the
Global South, and incentivizing new technology.
 Update: 2024 – World Energy Forum

► Corporates can lead systemic change

▪ Notwithstanding governments’ role, the private sector has a
major responsibility and opportunity to accelerate action – not
least to strengthen the resilience of their businesses and
ecosystems. Companies should look beyond their own
operations and seek ways to bring about systemic impact by
reshaping value chains, industries and policies.
 Corporate Actions under COP 28
1. Schneider Electric’s Zero Carbon Project cut 25% from 1,000 suppliers’ operational emission
intensity in three years, leveraging in particular practical trainings, digital tools, and onsite
implementation support.
2. Tesla revolutionized the automotive market by making electric cars more appealing than
fossil-fueled ones for many customers, before price parity – leading on design, performance
and digital features.
3. Kloeckner, a global steel distributor, introduced the world’s first “green steel” standard, which
immediately unlocked nascent demand and willingness to pay for low-carbon steel.
4. The First Movers Coalition’s more than 90 members committed $15 billion in purchasing to
build early demand by 2030 for key technologies in seven hard-to-abate sectors.
5. Maersk strongly advocates for an ambitious carbon tax for the shipping sector, to help shift the
industry to cleaner fuels.
 World Energy Outlook
2023 - IEA

Oil
World Energy Outlook 2023 - IEA

Oil
 Philippine Companies Goin Green
1. Gcash - “GCash Forest” to battle deforestation in the country, inspired by Chinese e-commerce giant
Alibaba’s Alipay Ant Forest.
2. Shell Philippines - using 100 percent green-tech energy to power its offices. Oil
3. Jollibee - The corporation is launching its first fleet of E-bikes, the country’s first road-legal E-bikes, to
reduce its carbon footprint and environmental impact.
4. Meralco - air quality monitoring project which aims to monitor and reduce carbon emissions.
5. SM - Trash-to-Cash Recycling Market. recyclable rubbish to be exchanged for cash.
6. Cebu Pacific Airlines - Cebu Pacific’s new ecoplane uses 35% less fuel per passenger than the
company’s current fleet.
7. San Miguel Corporation - intends to plant at least seven million trees across 4,000 hectares and in at
least seven provinces.
8. Holcim – ECOPlanet a global line of green cement with a carbon footprint that is at least 30% lower while
offering exceptional performance.
 First Country to be Erased by Climate
Change
Tuvalu is an island country in
the west-central Pacific
Ocean, sitting about halfway
between Australia and Hawaii.
It’s a coral atoll nation, which
means it sits on a ring-shaped
coral reef encircling a lagoon,
with islands along the rim. The
country is a stunning oasis,
but faces the threat of
disappearing completely from
the face of the Earth.

www.msn.com
 First Country to be Erased by Climate
Change
Formerly: Ellice Island
Population: 10,600 (2024 est.)
Head of State: British Monarch:
King Charles III, represented by
Governor General Sir Lakoba Taeia
Italeli.
Form of Government:
Constitutional Monarchy with one
legislative house (Parliament 15)

Source: www.britannica.com
The Energy Development in the Philippines
 History: Early Development of Renewables

► Early 1900’s – Hydropower is already in the Energy Pipeline

▪ Initiated by the private sector either for own-use or for local power distribution.
‒ Foreign missionaries constructed a 560 kW Camp John Hay Mini-hydro in
1913
‒ Meralco constructed the 17 MW Botocan Hydro Station in 1930 which was
the Philippines’ first hydroelectric power plant.
‒ A local company PPDC built its hydropower plants in the late 30’s:
• 528 kW Balugbog hydro in Nagcarlan, Laguna in 1938;
• 448 kW Palakpakin hydro in Calauan, Laguna in 1939, and;
• 75 kW Calibato MHP in San Pablo, Laguna in 1940.
 The Government’s Policy Directions on RE
► Commonwealth Act No. 120: 3 November 1936
▪ The National Power Corporation (NPC) was created to develop hydropower plant in
the country.
‒ All streams, lakes and springs were reserve for the use of NPC in developing
hydro.
‒ President Manuel A. Roxas, directed the NPC, in cooperation with Westinghouse
International, took a survey of the country’s hydroelectric potential and prepared
the Philippine Power Program in 1948. Its major undertaking was the 32 MW
Ambuklao Power Project.
‒ Construction began in July 1950 when President Elpidio Quirino was the
President. It took six years and 5 months to complete the construction.
‒ Operation of this hydroelectric facility started on December 23, 1956 during the
administration of President Ramon F. Magsaysay. Contractors were Guy F.
Atkinson Company and the Harza Engineering Company of Chicago.
2 Presidents continued what was the program of the previous government Source: web.archive.org
 The Government’s…
► Presidential Decree 269 (1973)

▪ Created the National Electrification Administration to manage rural electric

cooperatives in the country and giving the authority to actively develop
dendro-thermal and mini-hydro-power plants and associated facilities such as
alcogas and tree plantations, water impounding reservoirs in the country;
‒ 1981, NEA commissioned the first mini-hydropower plant in Luzon
‒ 10 years hence, 15 mini-hydropower projects were operating in the country
‒ As of 1996, NEA completed 19 mini-hydropower plant with total capacity of
21.61 MW
The Government’s Policy Directions on RE
► 1977 Presidential Decree 1206 – Creation of Department of Energy
▪ Section 10. Attached Agencies. The following government corporations are
attached to the Department for purposes of policy coordination and integration with
sectoral programs: Philippines National Oil Company, National Power Corporation
and National Electrification Administration.
▪ WHEREAS, the world-wide energy situation indicates that an adequate
supply of energy resources for the country's needs has become of long-term
and vital national concern considering that the adequacy of energy
resources is indispensable to accelerated economic growth;

Source: DOE History

The Government’s Policy Directions on RE
► 1977 Presidential Decree 1206 – Creation of Department of Energy
▪ Section 10. Attached Agencies. The following government corporations are
attached to the Department for purposes of policy coordination and integration with
sectoral programs: Philippines National Oil Company, National Power Corporation
and National Electrification Administration.
▪ The Ministry was abolished during the Regime of Corazon Aquino (1986 – 1992)
because of allege corruption.
▪ During the Regime of President Fidel V. Ramos, that Department was created by
virtue of Republic Act No. 7638 otherwise known as the Department of Energy Act
of 1992.

Source: DOE History

 The Government’s…
► Executive Order No. 215: 1987 (Aquino Administration)
▪ PD 40 was amended which given NPC the sole responsibility for the
development of generation facilities and transmission line systems in the
country. Mini-hydropower development was transferred to the sole authority to
the National Electrification Administration (NEA).
▪ WHEREAS, the government, as a matter of policy, is encouraging the private
sector to participate in economic development and has started to disengage in
areas which can be adequately handled by the private sector;
▪ Other issuances supporting EO 215: This allow private contractors under a
‒ RA 6957 (BOT Law), 1990 build-operate-transfer scheme to construct and
‒ RA 7718 complementing EO215 operate power generation facilities for a
reasonable return on their investment.
 The Government’s…
► The Electricity Crisis in 1992 - An Electricity or Presidential Power Shortage?
▪ After about a decade operating as a monopoly, NPC had accumulated substantial amount of
debt in dollars The heavy indebtedness caused NPC to fail in its generation and
transmission responsibilities. Its growing financial incapacity rendered NPC ineffective
in maintaining its existing generation portfolio and in building and installing critical
capacity to anticipate an impending power crisis. - (asepcells.ph)
▪ Those with long memories will remember that the Philippines has literally experienced
dark days of the early 1990s under the administration of President Corazon Aquino.
The 1986 ouster of President Marcos led to the cancellation of a controversial nuclear
power plant, and no new capacity was built – leading to daylong outages that stalled
the economy.
▪ The incoming Ramos administration (1992-1998) solved the problem through
emergency powers granted by the 1991 Energy Crisis Act to conclude contracts for
new power generation.
 The Government’s…
► The Electricity Crisis in 1992 - An Electricity or Presidential Power
Shortage?
▪ So why hasn’t the government’s response been more proactive? One answer
is red tape. The Department of Energy estimates that it takes 165
signatures and a minimum of three years to secure the necessary permits
(which can then be challenged, and delayed, in court by local activists opposed
to, say, coal power plants).
▪ Another is reluctance of some investors in the face of contractual and pricing
insecurity. In Arroyo administration, they renegotiated the contracts made
during the energy crisis in the 1990s to try to get more favorable terms. While,
the Energy Regulatory Commission has often been slow to approve cost
recovery, delaying rate changes in the face of increasing generation costs.
Source: asiafoundation.org
 The Government’s…
► The Electricity Crisis in 1992 - An Electricity or Presidential Power
Shortage?

‒ The 1986 ouster of President Marcos led to the cancellation of a

controversial nuclear power plant, and no new capacity was built – leading
to daylong outages that stalled the economy.
‒ The incoming Ramos administration (1992-1998) solved the
problem through emergency powers granted by the 1991 Energy Crisis Act
to conclude contracts for new power generation.
‒ President Ramos has bitten the bullet
Source: asiafoundation.org
 The Government’s…
► Republic Act 7638; 1992 - the DOE Law (Ramos Administration)
▪ Created the Department of Energy (DOE).
‒ to rationalize, integrate, and coordinate the various programs of the
Government towards self-sufficiency and enhanced productivity in power
and energy without sacrificing ecological concerns.
‒ Sole authority in hydropower development was transferred to DOE.
‒ The DOE has to deal with various laws governing the energy sector
 The DOE Then and Now
► Republic Act 7156, 1992 - the Mini-hydro Law
‒ Sole authority in hydropower development was transferred to DOE.
‒ Only 1 one mini-hydro was constructed under this law prior to the passage
of RA 9513.
‒ Barriers to renewable energy development still besets the industry:
▪ Red Tape – 165 signatures.
▪ Minimum of three years to secure the necessary permits (which could still be challenge)
▪ Pricing insecurity – the Arroyo administration they renegotiated the contracts made
during the energy crisis in the 1990s to try to get more favorable terms
▪ Energy Regulatory Commission has often been slow to approve cost recovery, delaying
rate changes in the face of increasing generation costs.
 The Government’s…

► EXECUTIVE ORDER NO. 462, December 29, 1997 (Ramos Administration)

‒ Exploration, Development and Utilization of OSW Energy Resources.

‒ Subject to existing rights, the government, through the DOE, shall engage in
the assessment, exploration, extraction, harnessing, development and
utilization of ocean, solar and wind (OSW) energy resources, preferably with
the participation of the private sector under a production-sharing contract

Late 90’s ocean solar and wind technologies are already in the pipeline program of
the Philippine Government.
 The Government’s…
► Republic Act 9136; 2001 - the EPIRA Law (Arroyo Administration)
▪ Powers and Functions of the DOE.
‒ (h) Exercise supervision and control over all government activities relative to
energy projects in order to attain the goals embodied in Section 2 of RA
7638;
‒ NPC’s sole authority over the generation, transmission and distribution was
privatized
‒ ERC was created to handle the electricity prices
‒ WESM was created to create a spot market intended to lower electricity price
‒ PSALM was created to handle the privatization of NPC assets
‒ TRANSCO was created to manage the transmission assets for privatization
 Other Laws Affecting RE Development

1. Philippine Water Code of 1976 - NWRB

▪ When priority in time of appropriation from a certain source of supply can
not be determined, the order of preference in the use of the waters shall be
as follows:
1. Domestic and Municipal Use
2. Irrigation
3. Power generation When it comes to priority decisions, power
generation is only third priority behind
4. Fisheries domestic use and irrigation.
5. Livestock
6. Industrial use, and;
7. Other uses.
 Other Laws…

2. Presidential Decree 1586 – Philippine Environmental Impact Statement

▪ The EIS system defines the procedures, documents and course of actions
necessary for the issuance of environmental compliance certificates.
▪ It also covers projects and undertakings categorized as environmentally
critical projects (ECA) and projects located in an environmentally critical
areas.
 Other Laws…

3. Republic Act 8371 – IPRA Law

▪ Section 59 of the Code states that “All departments and other governmental
agencies shall henceforth be strictly enjoined from issuing, renewing or
granting any concessions, license, or lease, or entering into any
production-sharing agreement, without prior certification from the National
Commission on Indigenous People (NCIP) that the area affected does not
overlap with any ancestral domain.
 Other laws…

4. Republic Act 7160 – LGU Code

▪ Prior to any activities in their jurisdictions, the proponent shall request for
the issuance of a barangay, municipal, and provincial resolutions supporting
the proposed project in their respective areas;
▪ Proponent shall provide benefits to host communities in a form of tax such
as:
▪ Local tax
▪ Business tax
▪ Royalty tax
▪ National Wealth tax
▪ 1 centavo per kWh
 Other Laws…

5. Republic Act 7586, 1991 – NIPAS Law

▪ it is hereby declared the policy of the State to secure for the Filipino people of present and
future generations the perpetual existence of all native plants and animals through the
establishment of a comprehensive system of integrated protected areas within the
classification of national park as provided for in the Constitution.
▪ Survey for Energy Resources. – Surveys shall be conducted only in accordance with a
program approved by the DENR, and the result of such surveys shall be made available to
the public and submitted to the President for recommendation to Congress. Any exploitation
and utilization of energy resources found within NIPAS areas shall be allowed only through
a law passed by Congress.
 3 Decades Hence: Any Improvement?

1. Price of electricity is among the highest in Southeast Asia

2. Looming power crisis is still a threat particularly during summer months since
no new power plants have been constructed;
3. Hesitance of investors to come or invest in the Philippines due to cumbersome
permitting and licensing issuances;
4. Interconnection is a big problem due to inability of NGCP to develop the
necessary transmission infrastructure;
5. The government is caught between the implementation of policies towards
climate change mitigation (RE) and stable electricity supply (fossil-fuel) due to
limited source of electricity?
 The Energy Development Programs
The Strategic Focus Areas depicts how the
energy sector will move forward to attain the
envisioned clean and sustainable future. This
is underscored with the Energy Supply and
Demand Outlook that is guided with
promoting energy security through clean
energy fuels and technologies and stronger
investments. Further, the move towards
transitioning to a low carbon future is also
substantiated with environmental
management, pursuit for energy resiliency
and security, continued energy engagements
at the international front, and the collaborative
role of the attached agencies.
 The RE Roadmap: Moving Towards Accelerated
Development
Approval of RE Bill 2008
2010 2015 2020 2030

Policy is in place; salient

provision of the law will Small capacity RE projects Emergence of ocean
are added to the grid; big energy projects, e.g. Commercialization
spur interest; activities on
RE projects are in the OTEC, wave, marine of ocean energy
RE development is
pipeline and tidal project options
expected to accelerate
Current RE
Activities 4.8%
demand 1 2 3 4 5
growth rate
2-year development of RE 5-year continuing RE Diversification of RE Development
database and enhancement project packaging and resources; database Of ocean energy
of tech’l expertise of RE Intensive promotional preparation and projects
stakeholders activities Project packaging of
emerging technologies

Double RE capacity (4.8% growth rate) Optimization of

RE Resources
- 8,072.3 MW capacity available in Luzon
- 2,442.6 MW capacity available in Visayas
- 2,963.6 MW capacity available in Mindanao
 The Energy Development Programs
Nationally Determined Contributions:

THE NATIONAL RENEWABLE ENERGY PROGRAM:

▪ The National Renewable Energy Program (NREP) 2020-2040 sets

aspirational target that adheres to the RPS goal:
• At least 35.0 RE percent share of the total generation mix by 2030 and
looking further at achieving 50.0 percent share by 2040.
• The CES adopts such target of 50.0 percent share equivalent to 73.9 GW of
additional RE capacities by 2040, 62.0 percent higher than the REF.

CES – Clean Energy Scenario

 The Energy Development Programs
Clean Energy Scenario
• 35.0 percent and 50.0 percent RE share in the power generation mix by 2030
and 2040;
• 5.0 percent blending for biodiesel starting 2022;
• 1.5 percent increase in aggregated natural gas consumption from the transport
and industry sectors between 2020 and 2040;
• 10.0 percent penetration rate of electric vehicles for road transport
(motorcycles, cars, jeepneys) by 2040;
• 5.0 percent energy savings on oil products and electricity by 2040; and
• At least 12.0 percent reduction in the GHG emission for the Nationally
Determined Contribution (NDC).
 The Energy Development Programs
ENERGY SUPPLY AND DEMAND OUTLOOK:
► Power Outlook: Bold or Lip Service
▪ The country’s peak demand increases by almost four-folds with 6.6 percent
annual increment for the 20-year period, from 15,282 megawatt (MW) in
2020 to 54,655 MW in 2040;
▪ Electricity sales also increase by almost four-folds, equivalent to a nearly
7.0 percent growth rate a year, which stands at 335,691 gigawatt-hour
(GWh) by end of the planning from 91,369 GWh in 2020.
▪ Gross generation increases three-folds reaching 364.4 terawatt-hour (TWh)
in 2040 with a 6.6 percent a year growth rate from 101.8 TWh in 2020.
 The Energy Development Programs
ENERGY SUPPLY AND DEMAND OUTLOOK:
► Power Outlook: Bold or Lip Service
▪ Coal share of total power generation decelerates by about half from a high
of 57.0 percent in 2020 to 24.6 percent in 2040.
▪ Generation from coal only increases at 2.2 percent annually as only
committed projects are the added capacity over the planning period.
▪ Natural gas overtakes coal as major fuel for power generation with its share
increasing significantly to 40.0 percent of total from nearly 20.0 percent in
2020. This is attributed to the flexibility of its fuel to support the higher
penetration of renewables in the generation mix, specifically solar and wind.
 The Energy Development Programs
ENERGY SUPPLY AND DEMAND OUTLOOK:
► Power Outlook: Bold or Lip Service
▪ The total installed capacity increases by about four (4) times from 26.2 GW
to 95.7 GW in 2040 coming from existing, committed, and new build
capacities.
▪ Solar, having the lowest capacity factor, expands to more than 34.0 percent
of total by 2040 because of declining capital cost from 750 USD/kilowatt
(KW) to 650 USD/KW.
▪ Natural gas and hydro also contribute significantly to the total installed
capacity with 25.4 percent and 16.1 percent share, respectively.
 The Energy Development Programs
ENERGY SUPPLY AND DEMAND OUTLOOK:
► Power Outlook: Bold or Lip Service
▪ The aggregate share of renewables in the generation mix reaches 35.0
percent by 2030 until end of the planning period to meet the required share
of RE for the mandated RPS.
▪ Solar contributes 15.0 percent to the total power generation.
▪ Hydropower provides 14.0 percent;
▪ Geothermal 4.4 percent;
▪ Wind 1.4 percent and;
▪ Biomass less than 1.0
 The Energy Development Programs
ISSUES:
► Power Generation Projects:
▪ The increasing demand for electricity requires the new power generation
projects. Under the REF, total capacity addition reaches 69.4 GW by 2040
requiring a total investment of PhP5.2 trillion.
▪ On the other hand, the CES sees the entry of more RE power projects with
capacity addition of 92.3 GW by 2040, which is worth PhP5.8 trillion in
investments.

Note: REF – reference Scenario; CES – Clean Energy Scenario

 The Energy Development Programs
ISSUES:
► Transmission Development Projects:
▪ For the next 10 years, the rehabilitation, expansion and development of new
substations, transmission backbone projects and island interconnection
projects demand PhP348.4 billion in financing support.
▪ On a per grid basis, the Luzon grid gets PhP100.5 billion from new
transmission line project, Visayas grid with PhP162.1 billion and Mindanao
grid with PhP85.8 billion.
 The Energy Development Programs
ENERGY SUPPLY AND DEMAND OUTLOOK:

► Total Final Energy Consumption (TFEC):

▪ The transport and industry sectors, with their combined average shares equal to
56.0 percent, account for the biggest contribution to the three-fold increase in
TFEC levels between 2020 and 2040.
▪ Other end-use sectors, such as the household, services and agriculture also put in
average shares of 24.5 percent, 15.5 percent, and 1.4 percent, respectively.
▪ Non-energy, or the use of naphtha, lubes and other petroleum products as
feedstock and raw materials in industrial process, completes the demand mix with
2.2 percent share
 The goal is to stay WITHIN THE SWEET SPOT

12
SWEET SPOT

10
The Price War
8 If priced above the SWEET SPOT:
•There will be social unrest
▪ Consumers wants that •Negative economic impact
the price of electricity is •Disincentive for business to
6 generate income
cheaper
▪ Generators wants that
the price of electricity is 4
highly competitive for Under recovery
sustainability results in under
2 If priced below the SWEET SPOT: investment and
▪ Government regulates •We are not ensuring the future’s
inefficiencies
the price. Politicians, sustainability
investors and highly 0
influential people 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
influenced the decision Minimum Price Maximum Price
making process. Trans-generational Cost Sharing
 The “Flip plopping” DOE Policy
October 2020 - Energy Secretary Alfonso G. Cusi
today said the periodic assessment of the country’s
energy requirements has led the Department of
Energy (DOE) to declare a moratorium on
endorsements for greenfield coal power plants.
According to the Energy Chief, the agency's most
recent assessment revealed the need for the
country to shift to a more flexible power supply
mix. This would help build a more sustainable
power system that will be resilient in the face of
structural changes in demand and will be flexible
enough to accommodate the entry of new, cleaner, DOE SEC. CUSI DECLARES MORATORIUM ON
and indigenous technological innovations. ENDORSEMENTS FOR GREENFIELD COAL POWER PLANTS
October 27,2020
 The “Flip Plopping”…
July 2024 - The DOE clarified that the Coal Moratorium
Policy issued in December 2020 is not a total ban.
The Policy does not cover existing and operational
coal-fired power generation facilities as well as any
coal-fired power projects considered committed
power projects; existing power plant complexes which
already have firm expansion plans and existing land
site provisions; and indicative power projects with
substantial accomplishments, particularly with signed
and notarized land acquisition or lease agreement for
the projects, and with approved permits or resolution
from local government units and the Regional
Development Council where the power plants will be
located.
The “Flip Plopping”…
 The “Flip Plopping”…
August 8, 2024 - House Deputy Minority Leader France
Castro on Thursday questioned the Department of Energy's
(DOE) policy of including liquified natural gas (LNG) under its
Green Energy Option Auction (GEA) Program, saying LNG is
not renewable and therefore can't be considered green energy.
The GEA program facilitates investments in renewable energy
in a bid to achieve the target of 35% renewable energy in the
energy mix by 2035 and 50% by 2040.
"It is not that... hindi natin gustong
Secretary Raphael Lotilla confirmed that LNG is methane and maglinlang ng taumbayan (It is not our
therefore a conventional fossil fuel that cannot be classified as intention to fool the people)... but we want to
renewable energy. Lotilla said that the DOE had to include be forthright or to be frank with our people
LNG under its GEA program because the supply of green or that at this time, we still need fossil fuels to
renewable sources of energy, such as solar and wind, is not balance the variable renewable energy,"
constantly reliable.
 The Country’s RE Resources
► Summary of the Country’s RE Resources – REPF 2019
Geothermal Resource – 1,200 MW
Hydropower - 10,500 MW
Wind resources – 76,600 MW
Micro-hydro – untapped vast potential
Solar Energy – untapped vast potential as a tropical country
Ocean energy - 170,000 MW
Biomass (bagasse) total potential of 235.7 MW
 The Ambitious Plan

► The Philippines adopted an ambitious plan to increase the share of renewable

energy in the power generation mix to 35 percent by 2030 and 50 percent by
2040. This involves increasing the following:
▪ Geothermal capacity by 75 percent;
▪ expanding hydropower capacity by 160 percent;
▪ increasing wind power capacity to 2,345 MW, and;
▪ adding an additional 277 MW of biomass power.
► The Department of Energy estimates the country needs US$120 billion by
2040, presenting ample opportunities for foreign investors.
 Summary:
1. Worldwide, the direction is Net Zero Emission to address the issues of global warming
and energy supply. The direction is to develop renewable energy resources,
particularly solar and wind energy resources. These is to reduce the continuing
production of carbon dioxide vis-à-vis greenhouse gas emissions. In other countries
intermittent supply from RE is still an issue for sustainable supply of energy;
2. Locally, the Philippine government is trying its best to follow the world’s initiatives but
internal politics intervene in the country’s decision making process;
3. The Philippines has a vast potential of renewable energy resources but development is
a problem due to economic and political issues. The government is also prohibited to
invest in power generation;
4. Investment in the power sector is through private sector in a form of public and private
partnership. However, the electricity market is still unstable since private investors are
having a hard time in looking for competitive market in the Philippines.
5. The influx of local and foreign investments are not happening as planned;
6. Major plans since early 80’s is a fossil-fuel independent country but politics is not
interested in science and engineering. As future engineers, lets help develop our
natural resources and achieve our goal of fossil-fuel free country.