The pre

1. SOLAR POWER
OPPORTUNITIES IN THE
PHILIPPINES
RUTH P BRIONES
Chairman/CEO, Greenergy Solutions Inc.

2. TOPICS
 Assessment of Philippines’s solar energy potential
 Best practice examples of solar generation and investment
returns in the Philippines
 Outlining the project application process to secure approval
 Foreign investment opportunities and project finance

3. PART I:
Assessment of the Philippine
Solar Energy Potential

4. 4
Solar Energy Potential in Asia
PHILIPPINES: 4.5-5.0 kWh/m2/day

5. 5
The Renewable Energy Map Potential in the Philippines
LUZON
VISAYAS
MINDANAO

6. 6
Sites/ Areas
with solar
energy
Potentials in
the Philippines
792,147,408 MWhr/year
Rank No 68 globally, 2008
Second country in Southeast
Asia in terms of irradiation
and insolation.
Solar irradiation: 1900
kilowatts a square meter

7. 7
Solar Energy
Investment
Potential
for the
Philippines
SECOND COUNTRY
IN ASIAIRRADIATION AND
ISOLATION
PHILIIPPINES
Most
comprehensive
Renewable Energy
Law in Asia
Has all the foundation to
become a renewable
energy leader in the region
owing to the strong semiconductor industry and the
manpower base

8. 8
Solar Energy projects registered under
DOE as of December 2013
AWARDED SOLAR PROJECTS
PENDING PROJECTS UNDER RE
LAW
GRID USE
56
GRID USE
4
OWN USE
5
33.0 MW
POTENTIAL
CAPACITY
 Grid use
 Own use
POTENTIAL
CAPACITY
1,012.0 MW
1.594 MW

9. PART II.
Best practice examples of solar
generation and investment
returns in the Philippines

10. 10
Best practice examples of solar generation
and investment returns in the Philippines
Asian Development Bank
Rooftop Project
CEPALCO 1.1 MW Photovoltaic
Power Plant
 Funded by Asian Development Bank
 Installed in 2003
 Commissioned in 2012
 133rd largest solar power plant
 574-kW
worldwide , 2008
 Consist of 6,480 Sharp
ND-Q7E6Z Photovoltaic modules
 Designed to provide 1,500 MWhr
of electricity annually
capacity located
in its
Ortigas headquarters;
 Installed by Suntech with integration
by Propmech
 About 600 MWhr/year of solar
electricity.
 Largest rooftop installation in the
country.
•

11. 11
Best practice examples of solar
generation and investment returns in the
Philippines
• Starbucks , St. Charge store, Quezon City,
Philippines
1. Size: 20.58 kWp solar PV System designed
2.
3.
4.
5.
6.
Source: www.tuscsolar.com
with 84 Monocrystalline panel;
Produced 3,671 kWh displacing 10.6% of
electricity sourced from grid – ten months
operation;
Savings of Php 34,000.00 in ten months
The system has a 25-year year economic
life;
Installed to replace expensive electricity
sourced from grid and as cooling the
temperature of the roof and interior;
Promotes green advocacy of Starbucks

12. PART III.
Outlining the project application
process to secure approval of a
Solar Renewable Energy Project

13. 13
Outlining the project application process to secure approval
of a Solar Renewable Energy Project
The Development Stages
Site and project
assessment
II.
Design and
optimization
III. Procurement
IV. Installation and
commissioning
V. Operation and
maintenance
VI. Customer
enablement
I.
Technical and Regulatory
Requirements
• Track Record/Experience
• Work Program
• Key Personnel Experience
• List of Existing company owned
equipment available for RE projects
operations
Financial Requirements:
i. Audited Financial Statement
ii. Bank Certification to substantiate
the Cash Balance
iii. Projected Cash Flow for two
years
iv. List of existing company owned
equipment for the project

14. 14
The Department of Energy Renewable
Energy Developer License Processes
DOE DC2009-07-0011)
Pre-development
Stages
RE Developer
procure permits
Service contract as
RE Developer
• Preliminary Assessment
• Feasibility Study
• Financial Closing
• Declaration of
Commerciality
• Environmental
Compliance Certificate
• Free and Prior Informed
Consent
• Certificate of NonOverlap
• Local Government
Endorsements
• Other government
permits
• Individual Filipino
• Corporation: 60%
Filipino; 40 % Foreign
• 100% Foreign owned –
shall register under the
Philippine Laws for
Technical and Financial
Assistance

15. PART IV.
Foreign investment
opportunities and project
finance for solar power

16. 16
Legal and Regulatory Institutional Frameworks For
Foreign Investments in Solar Projects in the Philippines
• Republic Act No 9513 -Renewable Energy Law
• Executive Order No. 226-Omnibus Foreign Investment
Code of 1987
 Republic Act No. 7042- Foreign Investment Code of 1991
 Republic Act No.7721- Foreign Banks Act
 Republic Act No.7652 – Investors Lease Act
 Republic Act No. 7718- Build- Operate- Transfer Law
 Investment Priority Projects of 2014
 Philippine Millennium Development Goals

17. 17
Sources and Manner of Financing
A. Public Sector Loans – Government Banks ( Land Bank of the Philippines,
Development Bank of the Philippines)
B. Private Sector Loans ( World Bank, International Financing Corporation,
Asian Development Bank)
C. Short Term Loans
D. Domestic Borrowings – local banks
E. Other Financing Institutions – international and local

18. 18
Solar electric power has a great deal of appeal for investors looking
at opportunities in the renewable energy market in the Philippines
Easy to assess and forecast the availability of the resource.
No variability associated with the cost of the main fuel,
sunshine.
 Compared to other renewable sources of energy, solar PV
is quick to deploy.
A utility scale solar PV plant can be developed in 1.5 years as
compared to an average of 2 years for onshore wind and up
to 7 years for a geothermal power plant.
Rapid deployment makes solar an attractive solution in the
Philippines in order to meet the country’s renewable portfolio
standards and keep up with increasing energy demand.

19. 19
INVESTMENT PROPOSAL
AND APPROVAL
• Any investment proposal
shall comply with certain
requirements under
Philippine laws.
Project Funding
Scheme
Merger - must comply with the legal
requirements under the Corporation Code of
the Philippines;
Acquisition - must comply with Section 40
of the Corporation Code and subject to the
restrictions
regarding
foreign
equity
ownership under the 1987 Constitution.
Management Contract - must comply with
Section 44 of the Corporation Code.
Joint Venture - may be entered into without
legal restriction on registration unless the
parties thereto form another business
organization requiring registration such as a
corporation or partnership

20. 20
INVESTMENT PROPOSAL AND APPROVAL
PROJECT INFORMATION
REQUIRED
BASIC INFORMATION USUALLY
SOUGHT BY AN INVESTOR/FUNDER
• Name of proponent, Physical address, Postal
address, Telephone number, Fax Number, Email address, name of contact person,
Mobile Phone Number of contact person.
• Brief description of investment proposal
• Proposed Value of Investment
• Proposed Corporate status of the proponent
• Proposed capital of investment entity and
• Site of proposed investment
• Basis of access to site
• Proposed duration of investment
• Anticipated rate of return on investment
• Environmental Impact of the investment
• Amelioration and remediation of environment
•
•
timing of capital take up
• Name and references of the EPC contractor
•
•
•
•
impact
Proposed employment impact
Number, grades and source of any proposed
expatriate staff and proposed duration of their
employment
Anticipated benefits of the investment to the
economy and infrastructure
Audited balance sheet for proponent
organization
Due diligence certificate for proponent
Company profile of proponent

21. 21
Technology: is it proven?
The Solar
Power
investment
bankability
challenge
Can the EPC provide references and has
capability to deliver the project on time?
What is the anticipated ROI?
Will it be viable commercially with the
Feed-in-tariff rate of Php9.68 per kWhr?
When is the facility generate a good
return?

22. 22
KEY DRIVERS IN
SOLAR PROJECT
FINANCE
Project Analysis
— Completion
Risk
Contractors
Manufacturers
Transmission
Construction
Contract Terms
Construction
Technology
Risk
Project Analysis
— Operation
Risk
Operator
Operating
Costs

23. FOREIGN INVESTMENT OPPORTUNITIES AND
PROJECT FINANCE
Solar projects can be complex and funding sources fickle.
It is important for developers to complete the solar project
while funding is still available and to ensure investors the
project will operate as planned.

24. 24
Foreign investment
Opportunities and
Project finance
Foreign and local solar technology developers are pushing for a massive installation of
solar panels on rooftops of households, commercial establishments and buildings in the
country.
Potential market for solar industry players : estimated at about $450 million, or P19 billion,
yearly. Based on the 50,000 households (representing 10 per cent of the half a million
constructions yearly) that can install solar panels with a capacity of 2 kilowatts.
To produce a kilowatt of solar power from these rooftop panels, one would need to invest
about $4,500 for the actual components and installation works.
Investment can be recovered in about seven years;
Solar panels usually last for at least 25 years.

25. 25
Please Contact:
• Ruth P Briones
• Email: hrpbriones@gmail.com
• Phone Nos: +632 430 1725
• Mobile No: +63 916 627 0910