Decarbonisation of Electricity Generation on Philippine Islands using Tidal Stream and PV Solar
Description of the Project
Ocean energy, specifically Tidal Stream Energy (TSE), is expected to make a significant contribution – together with other renewable energy sources – to achieve the goals of the Paris Climate Agreement. NAMA, together with Frankfurt School of Finance – UNEP Centre (FS) and their technology partner OceanPixel (Singapore), proposed the Decarbonisation of Electricity Generation on Philippine Islands using Tidal Stream and PV Solar (Programme) to the Nationally Appropriate Mitigation Action (NAMA) Facility. The proposal was accepted beginning of 2021, and the NAMA Facility agreed to fund further preparation needs of the Programme and allocated 20 million euros for the implementation phase.
The programme aims to develop the TSE technology to full market maturity. The technology has been tested in real-world conditions throughout several parts of the world and is currently being commercially used. The Philippines, with its enormous potential of 170 GW of ocean energy among more than a thousand inhabited islands, offers ideal conditions. The power plants on the small islands with isolated grids are to be converted from old and inefficient diesel generators to modern hybrid energy systems, all based on renewable energies. The programme supports 50 MW of installed capacity in a combination of 25 MW of TSE, 25 MW of photovoltaics and 100 MWh of battery storage. The essential feature of the programme is supporting private investors through subsidised loans.
Currently, the NAMA supporting organization partners are conducting the preparatory phase, which will end with the submission of a detailed feasibility study for the NAMA facility in August 2022. The Philippine partners are the Department of Energy and the Climate Change Commission of the Philippines, which steer the programme. Other stakeholders, such as the Energy Regulatory Commission and the NPC-SPUG (National Power Corporation – Small Power Utilities Group), are deeply involved in the programme preparation. UNOPS’ Energy Transmission Partnership (ETP) and UNDP’s DREAMS programme are supporting the programme by developing a marine energy roadmap and coordinating technical assistance programmes to various partners on the regulatory framework, licensing procedures, and integration of TSE into national support instruments for TSE. The two leading RE funding banks, the Landbank of the Philippines and the Development Bank of the Philippines, have agreed to include TSE projects in their RE portfolios. If the NAMA facility accepts the programme in the second half of 2022, the implementation phase will likely start in early 2023.
The NAMA Facility grant of 20 million Euro is expected to generate around 150 million Euro of private investments. The expected CO2-reductions amount to 2,1 million tons during the first 10 years and 7,7 million tons during the 20 years of duration of the supported Projects. The Programme shall enable a stable, 24hours per day energy supply to the inhabitants of the islands in a sustainable and environmentally friendly way (presently often only 4 to 6 hours per day). Operation and maintenance along with the stable energy supply shall generate positive socio-economic effects regarding occupation and income of the population on the islands.
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