RSF Development under the Philippine DOE's Expanded Roof-Mounted Solar Program : A Case Study of UPOU TLH Building aProf. Ari Luis Halos UPOU FMDS ● Introduction ● Preliminary Design of new Roof mounted Solar Facility (RSF) in UP Open University ● PH DOE Department Circular 12-0035 ● Evaluation of Alternative Business Models ● Analysis Introduction UPOU Existing Roof-mounted Solar Facility (RSF) 66 panels @ 180W 11.88 kW In operation since 201X __ kWhr generated __ CO2 emissions avoided Barriers to adoption of Roof-mounted Solar Facilities (RSFs) ● Cost ● ● ● ● ● Finance Information Subsidy disbursement process Trust Other barriers ○ ○ ○ Slow decision making Uncertainty about the future of client’s RSF decisions Revenue loss to DUs Dwarkeshwar Dutt,Understanding the barriers to the diffusion of rooftop solar: A case study of Delhi (India),Energy Policy,Volume 144, 2020,111674,ISSN 0301-4215,https://doi.org/10.1016/j.enpol.2020.111674. Conceptual Design of new Roof mounted Solar Facility (RSF) in UP Open University Teaching and Learning Hub (TLH) Building Existing System Parameters of UPOU TLH Building ● Current Power Supply ○ 3 phase 13.6kV from Meralco step down to 230V AC via 3 x 37.5 kVA transformers ○ 1 phase 125 kVA Backup Genset ● Load ○ Offices ○ Mostly gensets, computers & lighting Preliminary Design of RSF for UPOU TLH Building 1. PV Modules: a. 2. Inverters: a. 3. Longi 580W LR5-72HTH-580M x 144 = 83.52 kW Deye 33KW 3 phase SUN-33K G03 x 2 Battery Bank: a. None - grid tied Philippines DOE Department Circular 2023-12-0035 PH Government Policy on Solar ● RA 9513 : "Renewable Energy Act of 2008" (RE Act) - State to accelerate use of RE resources ● DOE's 2020-2040 National Renewable Energy Program (NREP), ○ ○ 35% RE in power generation 2030 50% by 2040 ● RA 11285:"Energy Efficiency and Conservation Act" ● ○ institutionalize energy efficiency and conservation, ○ enhance the efficient use of energy, and ○ grants incentives to energy efficiency and conservation projects Government Enercon Program (GEMP) ○ Reduce electricity and fuel consumption by 10% 22% Renewable Energy share in power generation mix As of 2022 EXPANDED ROOF-MOUNTED SOLAR PROGRAM POLICY OBJECTIVES. a) b) c) d) e) f) Attain 35% RE share by 2030 and 50% by 2040; Attract investments in RE thru innovative business models Empower End-Users in using roof-mounted RE systems Decongest transmission & distribution thru decentralization Offer alternative compliance mechanism to EEC Act & Government Energy Management Program (GEMP); and Streamline processes and requirements of roof-mounted solar projects Business Models ● ● ● Supply Contingency Option ○ Electricity End-Users with Self-Generation RSF of above 100 kW Lease-to-Generate Option ○ All energy generated shall only be exported either to the DU or to the Grid, Restricted Peer-To-Peer Energy Trading ○ applies to contiguous area where RSPs, Prosumers, and Consumers electricity trading within and/or among themselves ○ RSPs provide trading platform & operate P2P trading where excess electricity may be sold to DU or Grid; General Provisions 1. 2. 3. 4. 5. Prior to construction RSPs shall secure applicable permits a. DOE b. ERC, including the Distribution Impact Study by the DU Comply with PDC, PGC, DSOAR, etc; Follow safety standard requirements on Solar PV Systems under PEC; As compliance to GEMP, government agencies may participate ni the ERSP, and Renewable Energy Certificates (RECs) generated allocated according to Renewable Portfolio Standards (RPS) Rules Evaluation Of Self Owned Supply Contingency Business Model using OpenSolar.com Cost vs. Savings System Performance Environmental Benefit Financial Impact Evaluation of Alternative Business Models using Engineering Economic Analysis Engineering Economic Analysis of UPOU TLH RSF General Assumptions ● Project Cost ○ ● Economic Life ○ ○ ● Buildings : 30 years Solar Panels ■ Manufacturer’s Guarantee : 20 years ■ Obsolescence : 10 years Hurdle Rate ○ ● 83.52 kW x P30,000/kW = P2,505,600 10% as per ICC Revisions on ICC Guidelines and Procedures (Updated Social Discount Rate for the Philippines) September 30, 2016 Others ○ ○ Panel generation factor : 4 hrs/day 1%/year solar panel derating Engineering Economic Analysis of UPOU TLB RSF Evaluation of Alternative Business Models ● Arrangements ○ Supply Contingency Option ■ UPOU Constructs System with own funds and uses electricity generated to fully offset consumption ○ Lease to Generate Option ■ UPOU Constructs and sells all electricity to MERALCO at average Generation Cost ○ Restricted Peer-to-Peer ■ Power Developer constructs system and sells power to UPOU but UPOU invests in Detailed Architectural and Engineering Design (DAED) Engineering Economic Analysis of UPOU TLB RSF Evaluation of Alternative Business Models ● Cost of Energy ○ Supply Contingency Option ■ Meralco Supply Cost : P11.73//kWh (VAT Inclusive) ○ Lease to Generate Option ■ Meralco Generation Cost : P6.6468/kWh ○ Restricted Peer-to-Peer ■ Difference of Meralco Supply Cost and 12% VAT inclusive Generation Cost : P4.2856/kWh Engineering Economic Analysis Supply Contingency Option Lease to Generate Option Restricted Peer-to-Peer RSF Owner UPOU UPOU RSF RSF Energy Offtaker UPOU DU DU UPOU Rate 11.73 /kWh from savings 6.6468 /kWh revenue based on Meralco average generation rate 0.01 /kWh loosely based on ER 1-94 i 10% n 20 UPOU investment Cost Classification NPV Simple Payback (years) 2,505,600.00 2,505,600.00 4.2856 /kWh savings from buying from RSF at Meralco generation rate 25,056.00 250,560.00 RSF development cost RSF development cost Various repairs DAED Capital Outlay Capital Outlay MOOE MOOE 9,671,748.76 4,409,525.63 -14,674.63 4,198,480.57 1.76 4.11 21.55 0.48 Analysis Engineering Economic Analysis Results 1. UPOU building a new Roof-mounted Solar Facility is economically feasible a. b. 2. 3. Offsetting own use under Supply Contingency Option is the best option (highest NPV) Selling all generated power to the Distribution Utility (DU) under the Lease to Generate option is the next best option Leasing roof space to a Rooftop Solar Provider for supply of electricity to the DU under the Lease to Generate option is the worst Where only MOOE is available to UPOU, the Restricted Peer to Peer option is economically feasible with a positive NPV and the highest IRR Thank you!