COUNTRY REPORT

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Philippines Hydropower Highlights
Mr. RICARDO G. DELA CRUZ Mr. ARNULFO M.
ZABALA Mr. REY V. SALVANIA (Renewable Energy
Management Division) Department of Energy
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OUTLINE

• Overview
• Department of Energy Act of 1992
• Renewable Energy Management Division
• Republic Act No. 7156 (RA 7156)
• Tax Incentives under RA 7156
• Philippine Power Generation
• Installed Generating Capacity
• Power Sector Performance

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• Philippine Hydropower Generation
• Classification of Hydropower
• Hydropower Installed Capacity
• Hydropower Capacity Additions
• Hydropower Challenges
• Hydropower Programs
• Philippine Transmission System
• Existing Transmission Lines and Substation

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• Philippine Electricity Sales
• Power Consumption by Sector
• New Industry Relationships under
• Republic Act No. 9136 (RA 9136)
• New Industry Structure

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OVERVIEW

• REPUBLIC ACT NO. 7638 (RA 7638) an act creating
  the Department of Energy, rationalizing the
  organization and functions of government agencies
  related to energy, and for other purposes. this
  act is also known as the department of energy
  act of 1992.

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• The Department of Energy (DOE) shall prepare,
  integrate, coordinate, supervise, and control all
  plans, programs, projects, and activities of
  the Government relative
• to energy exploration, development,
  utilization, and conservation.

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• The Renewable Energy Management Division (REMD)
  is a newly-created division of the DOE Energy
  Utilization Management Bureau. REMD main
  function is to formulate policies, plans, and
  programs related to the accelerated development,
  transformation, utilization including the
  commercialization of renewable energy resources
  (e.g. biomass, hydro, ocean, solar, and wind) and
  technologies and effective implementation
  thereof.

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• REPUBLIC ACT NO. 7156 (RA 7156) an act granting
  incentives to mini-hydroelectric power developers
  and for other purposes. this act is also known
  as the Mini-hydroelectric Power Incentives Act
  of 1991.

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TAX INCENTIVES UNDER RA 7156

• Special Privilege Tax
• Tax and Duty-Free Importation
• of Machinery, Equipment, and Materials
• Tax Credit on Domestic Capital Equipment
• Special Realty Tax Rates on Equipment and
  Machinery
• Value-Added Tax (VAT) Exemption
• Income Tax Holiday

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Philippine Power Generation
Installed Generating Capacity, in MW
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Philippine Power Generation
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Hydropower Generation
CLASSIFICATION OF HYDROPOWER IN THE PHILIPPINES

• Micro-Hydro - up to 100 kW
• Mini-Hydro - 101 kW to 10, 000 kW
• Large-Hydro - gt 10,000 kW (10 MW)

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Hydropower Installed Capacity, in MW
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Hydropower Installed Capacity, in MW
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Hydropower Challenges

• Socio-environmental concerns
• Type of development
• Commercialization of technology

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Hydropower Programs

• Enhanced public acceptance
• Formulation of comprehensive programs
• Commercialization of technology
• Creation of hydropower database
• Pursuit of technical cooperation with other
• countries
• Rehabilitation program for existing
• hydropower plants

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Philippine Transmission System
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Philippine Electricity Sales
Power Consumption by Sector, in GWh
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Philippine Electric Power Industry

• REPUBLIC ACT NO. 9136 (RA 9136) an act
  ordaining reforms in the electric power industry,
  amending for the purpose certain laws and for
  other purposes. This Act is also known as the
  Electric Power Industry Reform Act of 2001.

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New Industry Relationships under Republic Act
No. 9136
LEGEND
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The New Structure of the Industry
Competitive generation sector
Regulated transmission and distribution sectors

• Creation of several GENCO clusters

Competitive electricity service providers

• Unbundling of electricity tariffs for transparency

End-users

• Opening up of high voltage transmission lines for
  easy access of distributors and large consumers

• Opening up of distribution lines for contestable
  end-users