the experience of the energy regulatory commission

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Forum on Clean Energy, Good Governance, and Regulation 1 The Experience of the Energy Regulatory Commission Francis Saturnino C. Juan

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Presented by Francis S. Juan, Energy Regulatory Commission (Philippines)

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Page 1: The Experience of the Energy Regulatory Commission

Forum on Clean Energy, Good Governance, and Regulation 1

The Experience of the Energy Regulatory Commission

Francis Saturnino C. Juan

Page 2: The Experience of the Energy Regulatory Commission

Forum on Clean Energy, Good Governance, and Regulation 2

The EPIRA

R.A. 9136(EPIRA)

The BLUEPRINT for the Electricity

Industry Restructuring

RESTRUCTURING

PRIVATIZATION

GENERATION

TRANSMISSION

DISTRIBUTION

SUPPLY

OPENACCESS

&RETAIL

COMPETITION

OPENACCESS

&RETAIL

COMPETITION

PRIVATIZATIONPRIVATIZATION

Page 3: The Experience of the Energy Regulatory Commission

Forum on Clean Energy, Good Governance, and Regulation 3

The Power Sector

GENERATION

TRANSMISSION

DISTRIBUTION

SUPPLY

COMPETITIVE

REGULATED

REGULATED

COMPETITIVE

NPCIPPs

TRANSCO

Private Utilities

Electric Cooperatives

SUPPLIERS

Page 4: The Experience of the Energy Regulatory Commission

Forum on Clean Energy, Good Governance, and Regulation 4

PRIMARY ENERGY MIX*PRIMARY ENERGY MIX*

2007 Energy Mix is based on 2007 forecast

Imported Oil33.8%

Indigenous

Energy

55.8%

Ethanol0.0%

Imported Coal10.3% Coal

3.2%

Oil1.4%

Geothermal22.8%

CME0.0%

Other RE15.7%

Natural Gas6.4%

Hydro6.3%

Self-sufficiency level = 55.8%

2006

2007

Imported Oil 31.8%

Imported Coal 11.0%

Biomass 16.0%

Hydropower 4.8%

Natural Gas 4.5%

Local Coal 4.3%

Local Oil 5.7%

CME 0.1%

Solar, Wind Mini-hydro

0.2%

Geothermal 21.5%

Indigenous Energy

57.2%

Total Supply - 43.5 MTOE

2007

Imported Oil 31.8%

Imported Coal 11.0%

Biomass 16.0%

Hydropower 4.8%

Natural Gas 4.5%

Local Coal 4.3%

Local Oil 5.7%

CME 0.1%

Solar, Wind Mini-hydro

0.2%

Geothermal 21.5%

Indigenous Energy

57.2%

Total Supply - 43.5 MTOE

Self-sufficiency level = 57.20%

Energy SituationerEnergy Situationer

*From the Department of Energy

Page 5: The Experience of the Energy Regulatory Commission

Forum on Clean Energy, Good Governance, and Regulation 5

POWER GENERATION MIX*POWER GENERATION MIX*

Power SituationPower Situation

2007

Geothermal

17.1%

Hydro

14.4%

Wind and Solar

0.1%Coal

28.3%

Oil Based

8.6%Natural Gas

31.5%

Self Sufficiency Level = 66%

2006

Coal26.9%

Natural Gas28.8%

Oil8.2%

Hydro17.5%

Geothermal18.4%

Wind and Solar 0.1%

Self Sufficiency Level = 65%

2007 Generation Mix is based on preliminary data

*From the Department of Energy

Page 6: The Experience of the Energy Regulatory Commission

Forum on Clean Energy, Good Governance, and Regulation 6

Interconnection

• Leyte-Luzon (440 MW)

• Leyte-Cebu (400 MW)

• Cebu-Negros (100 MW)

• Negros – Panay (100 MW)

• Leyte-Bohol (100 MW)

PLANT TYPEInstalled

(MW)%

Share

Oil-based 3,616 23

Hydro 3,293 21

Geothermal 1,958 12

Coal 4,213 26

Natural Gas 2,834 18

Wind 25 0.16

Solar 1 0.01

Total 15,941 100

Power GenerationPower Generation

as of December 2007*

Note:

Installed Capacity for NPC/NPC-IPP as per NPC Power Economics Dept. data.

Dependable capacity of NPC/NPC-IPP based on 2007 NPC Eligible Generating Capacity as of July 2007

Peak Demand as of October 2007 per TransCo S.O. (Luzon – May, Visayas – August, Mindanao – September)

GRIDInstalled Capacity

(MW)

Dependable

Capacity(MW)

Peak Demand

(MW)

Luzon 12,174 10,311 6,643

Visayas 1,833 1,498 1,102

Mindanao 1,933 1,671 1,241

Total 15,941 13,479 8,986

*From the Department of Energy

Page 7: The Experience of the Energy Regulatory Commission

Forum on Clean Energy, Good Governance, and Regulation 77

Sample Power Bill

Page 8: The Experience of the Energy Regulatory Commission

Forum on Clean Energy, Good Governance, and Regulation 8

• Pass-through nature

• Setting of base generation charge

• Regulator-approved NPC-TOU rates

• Recoverable generation cost from IPPs

• Ex-ante review of PPAs

• Least cost supply obligation

Generation ChargeGeneration Charge

Page 9: The Experience of the Energy Regulatory Commission

Forum on Clean Energy, Good Governance, and Regulation 9

• Case Background

• ERC Decision

• Directive to Renegotiate and Reflect True Cost

• Unresolved Issues

Wind Energy ExperienceWind Energy Experience

Page 10: The Experience of the Energy Regulatory Commission

Forum on Clean Energy, Good Governance, and Regulation 10

• “Make energy prices reasonable and affordable”

• “Intensify renewable and alternative energy use”

• “Enhance energy efficiency and conservation”

Policy Thrusts of Gov’t.Policy Thrusts of Gov’t.

Page 11: The Experience of the Energy Regulatory Commission

Forum on Clean Energy, Good Governance, and Regulation 11

Our VisionAsia's benchmark for excellence in power regulation

http://www.erc.gov.ph