CBRED is an RE support project is aimed to address the barriers to RE development in the Philippines that have persisted despite various government and private sector RE projects in the past, to enhance the national capacity on integrated energy planning and to contribute to and coordinate with ongoing RE activities.

The Project will achieve these goals primarily by building capacity in three major areas: (a) Policy and planning; (b) Market preparation and implementation; and, (c) Indigenous technology development support.

This UNDP-GEF project shall build capacity for both grid and off-grid market development mechanisms of both electricity and non-electricity RE applications.

Project Strategy

PROJECT DEVELOPMENTAL GOAL: GHG emissions from activities using fossil fuels is aimed to be reduced through the removal of the major barriers to the development and widespread implementation of renewable energy applications to replace part of the current fossil fuel use in the Philippines.

PROJECT PURPOSE: The overall capacity (technical,policy, planning, institutional, financial) in the country, both in government and the private sector, to develop, design and make use of the energy potentials of RE resources shall be significantly improved.

Global Benefits of the Project

Reduction in GHG emissions. The Department of Energy (DOE-GOP) has calculated the impact of the proposed project on the Philippine Energy Plan (PEP) which projects fuel use to 2010 and thence estimated emission reductions of GHG. Incremental RE production is assumed in three locations: the grid, electricity in remote Barangay and thermal/mechanical, non-power uses. Incremental grid production will come from mini-hydro, wind, bagasse and municipal waste sources. Incremental off-grid production will come from micro-hydro, wind and solar PV systems. Nonpower, thermal/mechanical incremental production will be found in wind pumps, water heating, industrial uses and an increase in animal waste. All calculations were made to be resource sensitive, meaning that energy supply was constrained to maintain an environmentally sustainable limit.

The GHG estimates were based on a procedure derived from the National Energy Plan of reducing all baseline energy use (electricity and non-power) to a fuel-oil equivalent. The RE incremental additions resulting from the project serve to displace part of the total baseline energy generation. Emission reductions are estimated based on assumptions about the blend of fossil fuels replaced by the project RE incremental additions. For example for grid power, it its assumed that baseline generation comes from oil-based, coal and natural gas while incremental generation comes from mini-hydro, wind and biomass. Estimates place total emission reduction by 2010 at about 29,500 Gg CO2.

The greatest potential benefit of the project globally is in the long-term emission reduction potential. Long-term emission reductions are indirect. More strategic reductions that the project will contribute to is in helping reduce costs, remove barriers and expand markets for renewable energy in the Philippines and globally. Such developments are expected to produce far greater reductions in future GHG emissions than the direct reductions discussed above.

National Benefits of the Project

The benefit to the country shall be in form of hard currency savings on fossil fuel imports. Putting on the ground large-scale grid-connect and thermal RE projects as well as small-to-medium size on-grid and off-grid will generate employment opportunities and assist the poverty alleviation thrust of the administration. Improved market penetration will also increase economic activities through private sector participation.

The DOE estimates that by 2010 the project will directly stimulate the addition of over 350 MW in grid-connected RE, over 20 MW of off-grid, remote barangay RE power and an annual savings of over 3 MMBFOE in conventional fuels in RE non-power applications.

Benefits of the Project to the Users

Access to electricity allows access to communication services in remote locations improving the social, political and educational opportunities. Access to income generating activities is an integral part of this project's promotion of RE. These are directed toward the alleviation of poverty particularly in the remote villages.

Objectives of the Project

In keeping with the GEF mandate, the overall goal of the project is the reduction of the growth rate of GHG emissions by removing the major barriers to and reducing the costs of development of renewable energy to replace fossil fuel use in the Philippines. The project has been conceived therefore to remove major barriers by setting the following main objectives:

1. Strengthening of the capacity of the relevant GOP agencies to formulate, enact and implement sound RE policies;
2. Enhancement of RE data banking and provision of information on RE for targeted audiences to build markets;
3. Enhancement of coordination among organizations concerned with RE;
4. Assisting the market penetration of RE in remote off-grid communities through the provision of incentives, and innovative financing and delivery mechanisms; and,
5. Improvement of the quality of, and knowledge and skills on, RE technologies and systems.