Studies
Renewable energy. Rural electrification  Power generation

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Renewable Energy Development Project for the Electrification of Busuanga Island, Philippines

Country : Philippines
Client : Provincial Government of Palawan
Start Date : 08/2015
Completion Date : 02/2018
Value of services : 671 750 €
Funder : French State, Treasury Department - FASEP (Private Sector Study and Assistance Fund)
Associate/Partner : N/A
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Description :
The BRED project (Busuanga Renewable Energy Development) was initiated following the implementation of the Master Plan for Electrification of Isolated Rural Areas drafted by IED on behalf of the Philippine Ministry of Energy. At the end of this study, the ministries in charge of the environment and energy have expressed the wish to carry out a detailed feasibility study to identify a suitable model for the development of electricity generation from renewable energies for the supply of island networks.

The project focused on Busuanga Island, located in the north of the province of Palawan. Indeed, this area includes rare ecosystems, but the problems of deforestation represent a significant risk for its development. The very strong growth in electricity demand (extension of the distribution network and strong economic growth due to tourism activities) makes it necessary to reinforce existing production capacity, consisting solely of thermal power plants (heavy fuel oil or diesel fuel).

The project aimed to determine the best technical and organizational schemes to:
i. Achieve a high rate of penetration of renewable energies in the energy mix to develop local potentials (biomass, solar);
ii. Rehabilitate degraded land and generate income through the creation of energy plantations;
iii. To define replicable technical drawings on the thousands of islands that make up the Philippine Archipelago
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Description of the Actual Services Provided The detailed feasibility study resulted in a recommended hybrid system consisting of:
• 2 units of 5MW biomass (boiler and steam turbine)
• 2 units of 2.5MWc PV + Battery storage
• EMS - Energy Management System
• Establishment of a biomass supply program (2 woodland options - Melia Dubia or Napeer Grass and land mobilization)
• A second configuration will allow direct consideration of higher biomass and PV capacities, as soon as a decision is made to decommission existing heavy-power plants - 10 MW boiler
The F / S included the development of an electricity demand forecasting model to size the production system (s), the diagnosis of existing production and distribution facilities, the consultation of suppliers.

The F / S has been approved by the provincial and national authorities in 2018 and the development of the project has been launched since mid 2018, with the aim of reaching the "ready to build" stage in 2019:
• Incorporation of the BRED Company - JV IED Invest and REURASIA;
• Obtaining authorizations and licenses, and legal security of land;
• Negotiation of the power purchase agreement and OA procedures
•Financial arrangement