Wiring the Southeast Asian City: Lessons From Urban Solar Applications in the Philippines

2.9 Wiring the Southeast Asian City: Lessons From Urban Solar Applications in the Philippines Jessie L. Todoc Independent Researcher and Consultant, Manila, Philippines

INTRODUCTION More than 20 years of solar PV development have resulted in the deployment of at least 228 GW of capacity at the end of 2015 (IEA, 2016). In fact, 2015 saw the highest growth in solar PV capacity at around 51 GW, or by 26.5% (IEA, 2016). China and Japan accounted for more than half of the solar PV capacity additions in 2015, and together with Germany, for more than half of the total or cumulative installed capacity by the end of 2015. But Germany has experienced declines in additional solar PV capacity in recent years, and seems to typify the trend among European markets, which has been compensated for by the growth in the Asia-Pacific (and American) markets. Joining China and Japan with the top capacity additions are India, Australia, and South Korea. In Southeast Asia, Thailand, Malaysia, and the Philippines have been the growing markets. Indeed, the Asia-Pacific markets have dominated grid-connected solar PV since 2013. The past few years through 2015 also saw a surge in utility-scale solar PV capacity, with Urban Energy Transition https://doi.org/10.1016/B978-0-08-102074-6.00031-0

32 GW installed in 2015, compared with 21 GW in the previous year. In contrast, grid-connected distributed solar PV grew only between 16 GW and 18 GW per year in 2011–2015. However, grid-connected distributed solar PV has been growing in emerging or new PV markets because of net metering, as net metering schemes “are easier to set in place and do not require investment in complex market access or regulation for the excess PV electricity (IEA, 2016, p. 11).” The Philippines has also seen a phenomenal growth in solar PV installations, including particularly rooftop solar PV. In fact, since the introduction of net metering in 2013, rooftop solar PV installations have grown exponentially, far exceeding the global average. Deutsche Bank (2015) expects the Philippine solar market to become a multigigawatt market in the next several years. Rooftop solar PV has several benefits. ADB (2014) summarizes the general benefits of a PV system and the specific benefits of rooftop or distributed solar PV (please see Table 1).

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336 TABLE 1

2.9. WIRING THE SOUTHEAST ASIAN CITY

Benefits of Rooftop Solar PV

CONSTRUCTION Site access

Photovoltaic systems are at the point of consumption, thus do not require additional investment for access during construction of for operation and maintenance

Modularity

They can be designed for easy expansion if power demand increases

OPERATION AND MAINTENANCE Primary energy supply

Solar energy is freely available, and the PV system does not entail environmental costs for conversion to electricity

Maintenance

PV systems require little maintenance

Peak generation

These systems offset the need for grid electricity generation to meet expensive peak demand during the day

Mature technology

PV systems nowadays are based on proven technology that has operated for over 25 years

IMPACT Investments

Rooftop PV system costs help offset part of the investment needed for new power generation, transmission, and distribution in the power grid

Cost

Fuel savings from PV systems typically offset their relatively high initial cost

Environment

PV systems create no pollution or waste products while operating, and production impacts are far outweigh by environmental benefits

Source: ADB (2014), p. xii.

IFC (2014) discusses the specific benefits of rooftop solar PV, including: • Value creation from under-utilized rooftops • Savings in network losses and costs of transmission infrastructure • Enhanced supply reliability and energy efficiency • Simpler or less complex project development • Ability to self-replicate This chapter will trace the development and growth of rooftop solar PV in the Philippines with the aim of determining and analyzing what has driven its growth, and notwithstanding, what could be hindering the development of its full potential as a sustainable energy resource. The chapter will also identify aspects of the technology, policy, and market that should be addressed so that this growth would be sustainable. The chapter is divided into two

parts. The first part traces the evolution of rooftop solar PV in the country. The second part examines sustainability issues and draws a conclusion.

RENEWABLE ENERGY BACKGROUND Riding in the global trend toward clean and sustainable energy, the Philippines passed, in December 2008, the Republic Act 9513, or the Renewable Energy Act of 2008 (RE Act), to accelerate the development of renewable energy (RE) resources by providing fiscal and nonfiscal (or market-based) incentives to project developers and equipment manufacturers and suppliers. The overarching goal is to increase energy selfreliance and reduce dependence on imported fuels, and thus enhance energy security, as well

337

RENEWABLE ENERGY BACKGROUND

as reduce impacts of energy on the environment. Following the signing of the RE Act, the DOE quickly proceeded to formulate the Implementing Rules and Regulations (IRR) of the new law, which was completed and signed in May, 2009. Following the IRR, the National Renewable Energy Program (NREP) was prepared and launched in June 2011. The NREP guides the full implementation of the RE Act and contains quantitative and time-bound targets on penetration of different RE technologies. The overall target of NREP is to triple RE installed capacity from 5369 MW in 2010 to 15,236 MW by 2030 (Fig. 1). The Department of Energy is the lead agency mandated to implement the provisions of the Act. To facilitate this mandate, the Act created the Renewable Energy Management Bureau

(REMB) under the DOE and the National Renewable Energy Board (NREB), a multisectoral body composed of representatives from various RE stakeholders to formulate the mechanisms, rules, and guidelines for the implementation of the RE policies in the RE Act. The Renewable Energy Act provides for fiscal and nonfiscal incentives to reduce the capital investments in RE. The fiscal incentives include: • Income tax holiday for 7 years • Duty-free importation of RE machinery, equipment, and materials • Special realty tax rates on rquipment and machinery • Net operating loss carry-over • Corporate tax rate after 7 years (10%) • Accelerated depreciation • Zero percent (0%) value added tax rate

The National Renewable Energy Program (NREP) Consolidated RE Roadmap Target additional geothermal capacity of 1495 MW is reached

Consolidated Milestones 2011

2015

Promulgation of remaining policy mechanisms, rules under the RE Law completed by end2011 Target additional biomass capacity of 276.7 MW is reached

2020

2025 Target additional hydro capacity of 5396 MW is reached by 2023 Target ocean power capacity of 70.5 MW is reached by 2025

1st Ocean Energy facility operational by 2018

Target additional wind capacity of 2345 MW is reached by 2022

2027

2030

Target additional solar capacity of 284.05 MW is reached by 2030

Implementation of Sectoral Sub-Programs and the Policy and Program Support Component

7526 MW by 2015 Existing RE capacity, 2010: 5369 MW

FIG. 1

12,682.5 MW by 2020

15,151.3 MW by 2025

Targeted RE-based installed capacity

The Philippnes National Renewable Energy Program. Source: DOE.

15,236.3 MW by 2030

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2.9. WIRING THE SOUTHEAST ASIAN CITY

• Cash incentive for RE developers for missionary electrification • Tax exemption of carbon credits • Tax credit on domestic capital equipment and services • Exemption from payment of universal charges for own consumption • Priority dispatch The RE Act and its IRR also specify several non-fiscal incentives, or market-based policy mechanisms or instruments to facilitate the entry and penetration of renewables. Rule 2 of the IRR provides precise definitions, the general purpose, and guidelines of these RE policy mechanisms: (a) Renewable Portfolio Standard (RPS)—“is a policy which places an obligation on electric power industry participants such as generators, distribution utilities, or suppliers to source or produce a specified fraction of their electricity from eligible RE resources, and may be determined by NREB.” (Section 4) (b) Feed-in-Tariff System (FiT)—“is a scheme that involves the obligation on the part of the electric power industry participants to source electricity from RE generation at a guaranteed fixed price applicable for a given period of time that shall in no case be less than twelve (12) years to be determined by ERC.” (Section 5) (c) Green Energy Option—“is a mechanism to be established by the DOE that shall provide end-users the option to choose RE resources as their source of energy.” (Section 6) (d) Net Metering for Renewable Energy—“is a consumer-based renewable energy incentive scheme wherein electric power generated by an end-user from an eligible on-site RE generating facility and delivered to the local distribution grid may be used to offset electric energy provided by the DU to the end-user during the applicable period.” (Section 7)

NET METERING Net-metering, per the RE Law, applies to a distributed generation system “in which a distribution grid user has a two-way connection to the grid and is only charged for his net electricity consumption and is credited for any overall contribution to the electricity grid.” The IRR of the RE Law further defines net-metering as “a consumer-based renewable energy incentive scheme wherein electric power generated by an end-user from an eligible on-site RE generating facility and delivered to the local distribution grid may be used to offset electric energy provided by the DU to the end-user during the applicable period.” The purpose of the net-metering program is “to encourage end-users to participate in renewable electricity generation.” Distribution utilities are mandated to enter into net-metering agreements, without discrimination, with qualified end-users who will be installing an RE system, subject to technical and economic considerations, such as the DU’s metering technical standards and national interconnection standards. In return, DUs executing net-metering agreements are entitled to resulting RE certificates that shall be credited in compliance with the obligations of the DUs under the Renewable Portfolio Standard (RPS). The ERC was tasked with establishing the net-metering rules, including interconnection standards, pricing methodology, and other commercial arrangements necessary to make net metering successful. These rules are contained in the ERC Resolution No. 9, series of 2013 “A Resolution Adopting the Rules Enabling the NetMetering Program for Renewable Energy,” which was issued on May 27. (The Rules were published on July 9, 2013 and became effective on July 24.) As a “distributed generation” system defined in the RE Law, the Rules limit the application of net-metering to small renewable generation systems supplying directly to the distribution grid that do not exceed 100 kW in capacity. The Rules

339

NET METERING

open the net-metering program to all “qualified end-users” who are entities that generate electric power from an eligible on-site RE generating facility and who are in good credit standing in the payment of their electric bills to the DU. All types of RE systems are eligible for the net metering program. The Rules also contained the Net-Metering Interconnection Standards that provide general guidelines on interconnection between the distributed RE generating system and the DU distribution system, including compliance of the RE facility to the Philippine Electrical Code, Philippine Distribution Code, and Distribution Service Open Access Rules, and specific technical guidelines on system parameters (voltage, frequency, power quality, and power factor), system protection, operation and maintenance, metering, and testing and commissioning.

The Rules also provide the template for the Net-Metering Agreement between the qualified end-user and the DU. The Rules also specify the pricing and crediting methodologies, respectively: (a) the DU’s monthly generation charge that is based on its blended generation cost shall be used as the preliminary reference price (export price); (b) the net amount payable by or creditable to the QE shall be obtained by subtracting from the subtotal amount for import energy, the following: (i) the subtotal peso amount for export energy, and (ii) the peso amount credited in the previous month, if any. If the resulting amount is positive, the QE shall pay this positive peso amount to the DU; if the resulting peso amount is negative, the DU shall credit the negative amount to the QE’s electric bill in the immediately succeeding billing period (see Fig. 2.) Import meter

Energy imported

Export meter

Customer imports energy from the distribution network • •

E.g., Night time with no energy generated by the Solar PV Household energy demand is supplied by the distribution network

less Import meter

Energy exported

Export meter

Customer exports energy to the distribution network • • •

Daytime with energy generated by the Solar PV Household uses up a portion of the energy generated by Solar PV for basic load Energy generated in excess of the Household load is exported to the distribution network

FIG. 2 How net metering works in the Philippines. Source: Reodica, Anna Maria A. (2015), “Integrating renewables into the distribution network: MERALCO experience,” presentation at the Technical Forum on Rooftop Solar PV, 10 Dec 2015, Pasig City, Philippines.

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2.9. WIRING THE SOUTHEAST ASIAN CITY

Since the start of the net-metering program, several issues have been raised that have called for the amendment of the net-metering rules (ERC, 2016): 1. Whether the lifeline rate should apply to qualified end-users (or utility customers who have availed of or entered into net-metering); 2. Whether the mechanism of merely accumulating the credits of net export on the customer bill is reasonable; 3. Clarification on the use of the approved netmetering agreement template. The potential reduction in electricity imported or bought from the utility could reach the lifeline threshold and makes the customer eligible for the lifeline rate. However, customers who could afford to install rooftop solar PV in their homes could not be classified as low-income households for which the lifeline subsidy has been targeted. Thus, ERC to resolve this issue recommends this amendment to the Net-Metering Rules: Section 16bis. Any end-user that qualifies for the Net-Metering Program shall be ineligible for the discounts provided to lifeline (customers) under the DU existing lifeline program. NREB requested clarification on whether or not DUs can pay in cash the accumulated peso credits at the end of each calendar year. ERC clarified that the DU “is not precluded from paying in cash after a certain period as may be agreed upon between the DUE and the QE.” However, in light of developments elsewhere as regards this issue, and to firm up the relevant provision of net metering rules, ERC opens the discussion to another option— negative peso amounts shall only be credited until the end of the calendar year, and any excess shall no longer be available for crediting the following year. On the use of a Net-Metering Agreement Template, ERC recommends using only the ERCapproved template, and deviations from this template shall not be accepted and approved.

GROWTH OF ROOFTOP SOLAR PV AND MARKET POTENTIAL Meralco is the Philippines’ biggest distribution utility. Its franchise area of 9685 sq km. encompassing more than 6 million customers in 36 cities and 75 municipalities, including Metro Manila, represents only 3% of the country’s land area, but more than 50% of the country’s total energy consumption. Meralco has played a key role in defining the net metering rules. Since the announcement of the net metering rules in 2013, the number of net metering customers of Meralco have shot up to 207 in less than two years, with a total installed capacity of 1652 kWp (Fig. 3). As expected, the number of residential customers with net metering outnumbered the commercial and industrial customers, in fact, by a factor of 8 as of October 2015, but the total installed capacity only by a factor of 1.5, and the average capacity of commercial and industrial rooftop solar PV under net metering was almost six times that of residential customers. At that time, Meralco expected the total number of net metering customers and their total installed capacity to more than double by end-2015, or in 2 months. Meralco accounts for more than 90% of both total net metering customers and installed capacity. Based on actual data from ERC and DOE, the number of net metering customers in the Meralco franchise area increased by 110% between October 2015 and May 2016, and by 76% until March 2017. But the growth in total installed capacity during these two periods in the Meralco franchise area increased from 66% to 75% (see Tables 2 and 3). Similar growth patterns are being experienced by VECO, the next biggest utility after Meralco. The number of net metering customers grew more than fourfold between May 2016 and March 2017 at VECO, while total installed capacity increased more than sixfold.

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GROWTH OF ROOFTOP SOLAR PV AND MARKET POTENTIAL

Net metering Customers (count & capacity) (as of October 2015)

450

# of commissioned customers kWp capacity

400

3829

483

3000.0

350

2500.0 Residential

Commercial & industrial

Customer count

184

23

Installed kWp1 capacity

989

300 2000.0

250

207 169

200 150

1105.0

89

1652 1500.0 1000.0

Average kWp capacity

663 1652

Total kWp capacity 5

28

100 44

50 1

0

556.4

500.0

328.2

0.0 5.4 2013

FIG. 3

2014

2015

Growth in net metering customers of Meralco. Source: Reodica (2015).

TABLE 2

Net Metering Customers as of May 27, 2016

Distribution Utility

Number of Customers

Capacity (kW)

AEC

6

37.12

CEBECO 1

4

24.00

CEBECO II

1

3.00

CELCOR

7

23.97

DECORP

3

57.52

LUECO

4

8.83

LUELCO

1

3.57

MECO

5

20.60

MERALCO

434

2734.84

TEI

2

16.25

VECO

6

24.85

Total

473

2,954.55

Source: ERC.

342 TABLE 3

2.9. WIRING THE SOUTHEAST ASIAN CITY

Net Metering Customers as of March 31, 2017

Distribution Utility

Number of Customers

Capacity (kW)

MERALCO

763

4793.76

VECO

27

159.62

CEBECO III

1

3.00

CEBECO I

5

84.00

DLPC

10

84.20

AEC

6

41.32

BATELEC I

1

10.00

PELCO II

4

26.00

LEYECO V

2

6.00

PANELCO

1

100.00

OEDC

2

16.73

Total

822

5,324.63

Source: DOE.

Thus, as of March 31, 2017, a total of 822 electricity customers with a total installed capacity of more than 5000 kWp have availed themselves of the net-metering program of the government. The bulk of these, 763 (or 93%), as expected, are in the Meralco franchise area, with a total installed capacity of close to 4800 kWp (or 90%). The net metering agreements in the two other major cities of the country, Cebu City and Davao City, served by the second and third largest private distribution utilities, respectively, VECO (Visayan Electric Company) and DLPC (Davao Light and Power Company), follow Meralco. The single largest net metering customer is probably the lone customer with 100 kWp rooftop solar PV served by Panelco (Panay Electric Cooperative) in the Panay Island. (Data on the individual customers of Meralco, which likely could also have such customers, are not available at the time of this writing.) Only 11 out of the 140 distribution utilities (including electric cooperatives) have net-metering agreements with their customers.

Based on the data from Meralco, most netmetering customers are their residential customers and the average size of rooftop solar PV installation per household is 5 kWp. The 2012 Family Income and Expenditures Survey estimated that there are 21.4 million households in the Philippines, of which 29%, or 6.2 million, belong to the highest income brackets (Php250,000 and above per year), which represents those that could afford to have solar PV systems on their roofs. This represents a huge market for rooftop solar PV. In addition to net metering customers, DOE and the utilities in the Philippines also classify rooftop solar PV customers as own-use or commercial projects. As of December 31, 2016, DOE had awarded 12 own-use rooftop solar PV with a total capacity of 6320 kW, of which 2714 kW were already installed. In addition, DOE had awarded six commercial projects with a total capacity of 46.18 MW. So to date, the total capacity of the rooftop solar PV installed in the country must be already at least 57 MW, assuming

343

GROWTH OF ROOFTOP SOLAR PV AND MARKET POTENTIAL

that all these awarded commercial and own-use projects will have been completed at the time of this writing. In addition, a total of 36 rooftop solar PV projects (commercial and own-use) have pending applications at the DOE as of December 31, 2016. Interestingly, almost all these pending, and many awarded own-use and commercial rooftop solar PV projects, are with commercial malls. Indeed, shopping malls proliferate in the Philippines and characterize its retail industry, which in turn has important contributions to the Philippine economy. As reported by the Philippine Statistics Authority (PSA), the retail industry contributed 13% of the country’s GDP in 2014 and 24% of the entire services sector, gross value added. The traditional stores have evolved from simple shopping centers into one-stop complexes offering various activities from just shopping to dining, working, entertainment, and even religious functions. As shown in Table 4, there are more than 500 shopping malls all over the country, not including those that were constructed in 2015 and 2016 and are under construction. The PV system can substitute the power requirements, particularly for lighting, which represents 20%–30% of the total power consumption of malls (Ecofys/CSI, 2015). Fig. 4 is an image of the first rooftop solar PV installed in a shopping mall. The potential for installing rooftop solar PV on hospital roofs is much higher. Private hospitals alone already number more than 1000 (Table 5). The statistics from DOE do not indicate that rooftop solar PV projects have been installed in hospitals. But Ecofys/CSI (2015) reported that Urban Green Energy (UGE) and its partner in the Philippines, Orion Group International, had installed a 153 kW hybrid solar-wind energy system for Calamba Doctors’ Hospital. UGE had designed a system that uses six of the hospital rooftops. The facility will eventually offset 20% of the hospital’s electricity bill. The system also includes a monitoring device, which transmits real time energy

production data that can be accessed through the internet. UGE is now working with Calamba Doctors’ Hospital to implement similar systems in their other medical facilities across the Philippines. Local governments are also a big market for rooftop solar PV. Based on data from PSA, there are more than 42,000 barangays, more than 1600 cities and municipalities, and 81 provinces in the Philippines (Table 6). Each of these local government units will have its own building, whether a TABLE 4

Number of Shopping Malls in the Philippines

Area

Number of Malls

Angeles

20

Bacolod

10

Baguio

14

Batangas

5

Cagayan de Oro

14

Cebu

23

Dagupan

4

Davao

25

Iloilo

23

Naga

10

Olangapo

2

Metro Manila 198

198

OTHER REGIONAL MALLS North Luzon

51

South Luzon

59

Mindanao

34

Visayas

29

Total

521

Under construction

23

Expected completion by 2015

3

Expected completion by 2016

12

Source: CSI Energy Solutions International.

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FIG. 4

2.9. WIRING THE SOUTHEAST ASIAN CITY

The first rooftop solar PV installed in a mall. Source: Author.

TABLE 5

Number of Private Hospitals in the Philippines

Region

Number of Private Hospitals

NCR

70

CAR

9

Region I

36

Region II

21

Region III

58

Region IV

105

Region V

31

Region VI

24

Region VII

26

Region VIII

15

Region IX

25

Region X

32

Region XI

51

Region XII

53

CARAGA

10

ARMM

5

Total

571

DOH Licensed private hospitals

1071

Source: CSI Energy Solutions International.

THE NAMA FACILITY PROJECT AND SUSTAINABILITY OF ROOFTOP SOLAR PV

TABLE 6 Number of Local Government Units in the Philippines September 30, 2015

June 30, 2015

Provinces

81

81

Cities

144

144

Municipalities

1490

1490

Barangays

42,036

42,029

Source: PSA.

simple one-story barangay hall or multistory city/municipal or provincial government hall.

THE NAMA FACILITY PROJECT AND SUSTAINABILITY OF ROOFTOP SOLAR PV Despite the exponential growth in netmetering customers (particularly in the Meralco franchise area) since the program was launched in 2013, the DOE believes that the country’s rooftop or distributed solar PV potential is not being fully exploited. It estimates that the market for distributed solar PV is at EUR 400–800 million annually. At an estimated cost of EUR1500/ kW, these correspond to 267–533 MW of rooftop solar PV annually. DOE has identified several barriers for the slow or less optimal uptake of rooftop solar PV, but it proposes that the biggest hurdle is the financial barriers—banks and leasing companies have been reluctant to offer reasonably priced, reasonably termed, and standardized financing products due to perceived market and technology risks, and the perception that the market is too small. In this regard, DOE has partnered with the Center for Clean Air Policy (CCAP) to develop a NAMA Facility project under the government’s program Enabling Distributed Solar Power in the Philippines. The proposed EUR20 million Distributed Solar Power NAMA Support Project (NSP), which has obtained

345

initial approval from the NAMA Facility, will establish a Financing Support Fund (FSF) that “will reduce the perceived risk by local financing institutions and facilitate the flow of commercial debt to the distributed sector” (NAMA facility, 2017). The FSP will consist of “a partial credit guarantee fund and a project preparation facility designed to develop a pipeline of bankable projects. The partial credit guarantee fund will enable local banks to provide competitive financing for solar projects and to enter the solar financing market on a large scale” (CCAP, 2017). The NSP will also build the financial sector capacity to evaluate distributed PV projects and bring a variety of financing options for DG PV customers. The FSF will leverage approximately EUR75 million in private sector (funds) and directly lead to financing 50 MW in DG PV installations (NAMA Facility, 2017). The NSP will accelerate the development of DG PV market estimated at over 3000 MW that will lead to annual direct reductions of 1.8 million tons of CO2 over 25 years, or cumulative long-term indirect reductions of 47 million tons of CO2 by 2040. In addition to financial barriers, regulatory and institutional barriers have been identified: • Distributed energy projects must undergo complicated and multiple permitting processes that increase the soft costs of installations. • The absence of technology certification and installer accreditation programs leads to higher risks, higher transaction costs, and lower safety and trust to grid operators, consumers, and lenders. The NSP will address these additional barriers by establishing a comprehensive Technical Assistance Facility to support the development of solar technology standards and installer accreditations. The Facility will also help simplify permitting and approval processes for solar installations and build capacity of local governments and grid operators to process solar

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2.9. WIRING THE SOUTHEAST ASIAN CITY

BOX 1

THE NAMA FACILITY The NAMA Facility is a multilateral support fund initially established by the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) and the Department for Business, Energy and Industrial Strategy (BEIS) of the United Kingdom (UK) in 2012. In 2013 they contributed jointly an initial €69 million of funding to support developing countries and emerging economies that show leadership on tackling climate change and that want to implement ambitious climate mitigation measures, otherwise called nationally appropriate mitigation actions (NAMAs). BMUB and BEIS jointly contributed an additional €49 million, to fund a second bidding round for NAMA Support Projects 2014. In 2015, the Danish Ministry of Energy, Utilities and Climate (EFKM) and the European Commission joined the NAMA Facility as new Donors. The third call for NAMA Support

permitting applications. Following conversation with DOE, the project would also involve the Technical Education and Skills Development Agency (TESDA) toward the development of certification or competency programs on rooftop solar PV (Box 1).

FINANCING AND BUSINESS MODELS Unsubsidized rooftop solar electricity costs between USD0.08–USD0.13 per kWh, are 30%– 40% below retail electricity in many markets globally; and in the Philippines, average solar electricity cost is USD0.10 per kWh vs an average retail electricity cost of USD0.26 per kWh (Deutsche Bank, 2015). Yet, solar PV systems remain to be characterized by a high capital

Project Outlines was made possible due to a joint contribution of additional funding of up to EUR 84 million by BMUB, BEIS, EFKM and the European Commission. Recognizing the current and future role of NAMAs in the climate architecture, BMUB and other donors continue to provide tailor-made funding for their implementation in partner countries. They jointly provide up to EUR 59 million for the fourth Call of the NAMA Facility. The NSP of the Philippines has been preliminary selected for funding under the fourth call of the NAMA Facility. The project is embedded in the Philippines’ Intended Nationally Determined Contributions (INDC), which targets 70% reduction of GHG emissions by 2030. Source: The NAMA Facility http://www.nama-facility.org/ about-us/

upfront cost and low operating cost over a long service life. Thus, the affordability of rooftop solar PV systems rests on the ability to finance the capital cost. ADB (2014) highlights four financing models for rooftop solar PV projects: 1. Direct purchase: A building owner may choose to fund a rooftop PV system using the owner’s own funding or debt financing. The owner would be responsible for all project development decisions and would incur all associated costs. 2. Third-party financing: Under third-party financing mechanisms, the owner does not purchase the PV system, but instead enters into an arrangement with a company to make periodic lease payments or electricity payments for the system. These third-party financing mechanisms can be attractive

DU AND LGU REGULATION OF ROOFTOP SOLAR PV

because they can reduce the risk and complexity involved in owning and operating a PV system. And systems owned and operated by third-party providers often perform better because the providers monitor their electricity output frequently, and specialists perform necessary maintenance or repair. (a) Solar leasing: The provider leases the owner’s roof space, installs the equipment, and then owns and operates the facility for an agreed period. (b) Power Purchase Agreements: A power purchase agreement has the provisions to sell all the generated power to the building owner at an agreed price. The whole system will be transferred to the owner at the end of the agreed period at no cost. In the Philippines, two banks—the Bank of the Philippine Islands (BPI), a private commercial bank, and the Development Bank of

the Philippines (DBP), a government-owned bank—have been active in offering debt finance to rooftop solar PV investments, either through term loan or leasing. The BPI has been active in financing clean energy (renewable energy and energy efficiency) projects since it joined the Sustainable Energy Finance program of the International Finance Corporation (IFC), which was launched in the Philippines in 2008. The DBP has been offering financing for clean energy and environment projects since the early 1990s through its Environment Development Program (EDP) lending facility.

DU AND LGU REGULATION OF ROOFTOP SOLAR PV The Interconnection Standards of the Net-Metering Rules also provide the general requirements and procedures for application for interconnection with the DU. Fig. 5 shows

Application process Receipt of application

Technical evaluation

Technical evaluation

Conduct of a distribution impact study (DIS) with the following scope of work:

Design of interconnection Facilities

• Circuit modeling • Load flow and short circuit analysis • Voltage study

Project agreement

Approval of facilities

Execution of project

• Verification of penetration limit • Load profiling Testing and commissioning before energization

Testing and commissioning

FIG. 5

347

Utility regulation of net metering applications. Source: Reodica (2015).

348

2.9. WIRING THE SOUTHEAST ASIAN CITY

FIG. 6 The PEC and LGU regulation of net metering applications. Source: Author.

Submit plans

Review plans

Issue permit

Inspect rough

Inspect wirings

Final inspection

Issue certificate of electrical inspection

the application and evaluation processes of Meralco for rooftop solar PV. The Net-Metering Rules also require rooftop solar PV installations to comply with the requirements of the Philippine Electrical Code (PEC). PEC, in turn, requires that new or alterations of existing wiring installations undergo electrical (safety) inspection. The basic process for undergoing inspection as provided by the PEC is shown in Fig. 6. The enforcement of the PEC lies with the local government units (LGUs). (The specific technical provisions of the PEC relevant to rooftop solar PV will be discussed in a latter section.) End-users availing themselves of netmetering should comply with both the requirements and procedures of the DU and the LGU having jurisdiction on the distributed generation facility, as depicted in Fig. 7.

Local governments, particularly at the city and municipal level, should be the ones to first realize the potential benefits of rooftop solar PV as they are very much involved in the regulation of the systems, particularly insofar as electrical safety and structural integrity are concerned. Under the National Building Code, local governments through the Office of the Building Official (OBO) regulate the construction of new buildings or the retrofitting or renovation of existing buildings, including its structures and electrical wiring. Building owners must seek the corresponding permits prior to construction or installation, and these must undergo inspection prior to, during, and after implementation. In the first years of the implementation of net metering, the Department of Energy, with technical and financial support from GIZ and ICA, has identified the role of LGUs, first in bringing

349

DU AND LGU REGULATION OF ROOFTOP SOLAR PV

LGU

QE

DU

Written request Provide information and documents

Process application for electrical and/or building permit Approved Issue electrical permit and/or building permit

Submit application (together with required data and fee) Not approved Submit additional data/documents for completion (if required)

Acknowledge receipt and statement of completion (10 bus. days)

Define whether distribution impact study is required Required Not required

Inform applicant about results and consequences of study

Realize RE installation

Inspect RE facility

Issue certificate of final inspection

Corrections

Inspect RE facility

Submit documents required Acknowledge receipt

OK

Sign connection agreement

FIG. 7

Overall procedures in net metering applications. Source: Author.

350 TABLE 7

2.9. WIRING THE SOUTHEAST ASIAN CITY

Engagement With the LGUs

Dates

Title of Workshop

March 26, 2014

Workshop LGU Regulation for Solar PV Rooftops

August 20, 2014

Support CCC Roundtable Discussion on Formulation of Checklists for LGU Electrical Safety Inspection of solar PV installations

September 4, 2014

Workshop “One year Anniversary of Net-Metering in the Philippines: Review, Lessons Learned and Next Steps”

October 21, 2014

Validation Workshop on Reference Paper for LGU Electrical Safety inspection of solar PV Installations

December 10, 2015

Technical Forum on Rooftop Solar PV

January 8, 2016

MOA signing ACMEEE and ICASEA: Development of Rooftop Solar PV Inspection Manual and Checklist

September 15, 2016

Meralco Dialogue, Round 1

March 21, 2017

Meralco Dialogue, Round 2

Source: Author.

down the administrative cost of rooftop solar PV, and second in ensuring the safety of installations. The three parties, together with other key stakeholders, notably Meralco, organized a series of consultation workshops to pin down the regulatory issues insofar as local governments are concerned. Not surprisingly, electrical safety compliance of rooftop solar PV installations came to the forefront. A key, or main, conclusion from this dialogue with the LGUs was that the current provisions of the PEC on electrical safety of rooftop solar PV installations need to be updated based on the latest version of the National Electrical Code (NEC), which is the main reference of the PEC. ICA continued the engagement with the LGUs through the Association of City/Municipal Electrical Engineers and Electricians (ACMEEE) and supported the development of a rooftop solar PV inspection manual and checklist based on NEC 2014. ICA and ACMEEE obtained the support of Meralco by conducting series of dialogues between its engineers and the electrical inspectors of selected LGUs. ICA and ACMEEE

completed the manual and checklist in February 2017. At the time of this writing, and with the manual completed, Meralco has committed to facilitate the dissemination of a rooftop solar PV manual and checklist within its franchise area. Table 7 summarizes the engagement with the LGUs as regard net metering and rooftop solar PV.

ELECTRICAL AND FIRE SAFETY A rooftop solar PV system, like any electrical system, presents electrical safety risks of electrical fires and electric shock. However, this aspect of rooftop solar PV tends to be undermined in the design and implementation of a rooftop solar PV project. Compliance to electrical safety requirements should be the major consideration in wiring design. However, this tends to be overlooked. For example, knowledgeable local government electrical inspectors in the Philippines complain about the kinds of electrical plans for rooftop solar

ELECTRICAL AND FIRE SAFETY

PV submitted to them prior to the issuance of wiring permits. Wiring design also got minimal treatment in ADB (2014), as against, for example, inverter selection, despite acknowledgement of the importance of wiring design in energy efficiency and electrical safety. The handbook’s section on “Ensuring Safety” focused on protection against electrical safety hazards (electric shocks) rather than wiring design. At best, the handbook presented the requirements of the Philippine Electric Code for solar PV systems (Article 6.90), but fails to describe how those provisions should be complied with (or had been complied with by the ADB pilot project). Non-compliance to electrical safety requirements is the major cause of electrical safety hazards and failures in rooftop solar PV systems. Eghtesady (2012) presents the types of electrical safety hazards and failures, as well as their respective remedies, in solar PV installations. The main systems failures related to rooftop solar PV refer to equipment and wiring failures (Table 8). Eghtesady also notes that the worker (installer) and his or her workmanship can be a source of failure. That is why it is a must that the contractor is licensed to perform such work and comply with an electrical code. In the Philippines, this means the contractor should be licensed by the Philippine Constructors Accreditation Board (PCAB) and comply with the Philippine Electrical Code. The PEC is the “bible” of electrical practitioners in the Philippines. Heavily referenced in the American NEC, it applies to all electrical installations in the Philippines and defines general installation and safety standards. Enforcement of the PEC rests with local government electrical inspectors. Compliance with the PEC ensures electrical safety in the homes. The electrical safety requirements of solar PV systems are provided by Article 6.90 of the Philippine Electrical Code. The provisions of Article 6.90 describe in detail:

351

1. Solar PV system components in common system configurations (PEC 6.90.1) 2. Installation of components and connection (PEC 6.90.1.4) 3. Circuit requirements (PEC 6.90.2) 4. Overcurrent protection (PEC 6.90.2.3) 5. Disconnecting means (PEC 6.90.3) 6. Wiring methods (PEC 6.90.4) 7. Grounding (PEC 6.90.5) 8. Marking (PEC 6.90.6) 9. Connection to other sources (PEC 6.90.7) 10. Installation of battery systems (PEC 6.90.8) The basic safety requirements of the PEC for a typical rooftop solar PV system are shown in Table 9. Wollny (2014) also recommends using a visual inspection checklist as shown below in conducting inspection of rooftop solar PV system (see Table 10). During a consultation with local government inspectors and practitioners, Wollny (2014) also recommended updating Article 6.90 of the PEC to the 2014 version of the NEC. In this regard, ACMEEE, with funding from ICA under its Electrical Safety program and in consultation with Meralco, has developed an inspection manual and checklist for rooftop solar PV based on NEC 2014. The Manual, designed precisely for local government inspectors, discusses ground-faults in grounded and ungrounded systems, overcurrent protection, and equipotential grounding. The Manual divides rooftop solar PV systems into the string circuit, the array circuit, and the inverter circuit, and presents the inspection checklists based on these circuits (Figs. 8 and 9). The Manual, following the PEC, also presents the requirements of electrical plan templates. (At the time of this writing, however, the PEC Committee of IIEE, incharge of updating the PEC, has just submitted to the Board of Electrical Engineering a revised or updated version of the PEC based on NEC 2017.) Electrical failures of connections, appliances, machines, and others are the number one causes

352 TABLE 8

2.9. WIRING THE SOUTHEAST ASIAN CITY

Failures and Their Remedies in Rooftop Solar PV Systems

Failures

Remedies

EQUIPMENT • Modules: Cell short circuit, cell open circuit, interconnect open circuit, open circuit, short circuit, glass breakage, delamination, hot spot, DC arc fault, by-pass diode, encapsulant, bonding path resistance, reverse current overload, corrosion, strain relief, insulation, weather • Inverter: capacitor, bridge circuit, insulation, output overload, DC input miss wiring, ventilation, termination, component short of open circuit, loss of control circuit, surge, harmonic, synchronization, overvoltage, weather, ground fault • Combiner: insulation, loss of control circuit, termination, undersized bus • Disconnecting means: undersized, insulation, inadequate withstand current • Overcurrent protective devices: undersized, inadequate interrupting capacity • Connectors: inadequate voltage rating, lockable vs. nonlockable, make first break last ground pin in multi-pin connectors (plug)

• Use appropriate overcurrent protective device type and rating • Assure that the maximum open circuit voltage does not exceed the equipment voltage rating • Assure that the maximum modules short circuit current does not exceed the inverter maximum input short circuit current rating • Equipment are listed by a recognized testing agency according to approved test standards and labeled or identified as listed

WIRING • • • • • • • • • • • • • •

Short circuit Ground-fault current Excessive DC open circuit voltage Open circuit Overload Over heat (i.e. ambient solar radiation, harmonics, irradiance factor, etc.) Lack of, improper or inadequate grounding (equipment system) Undersized raceway Improper terminations Improper connector Intermix or dissimilar metals (i.e., Cu and Al) Improper binding screws or splicing devices Improper expansion joints Rodents

Source: Eghtesady (2012).

• Use wire size suitable for the short circuit current of modules including the irradiance factor and solar exposure de-rating effect • Use appropriate type and rated overcurrent protective devices • Include the effect of continuous operation of the system and ambient temperature • Coordinate terminal temperature ratings of various equipment terminals with that of wiring insulation • Use wiring insulation that is suitable for the exposed environments (wet, UV, corrosive, etc.) • Assure wire stranding is compatible with wiring termination (i.e. fine strand vs standard strand) • Do not intermix different wiring materials (Cu vs Al) • Provide properly sized equipment grounding that is based on circuit overcurrent protective device rating and terminates into a fitting that is rated and sized appropriately • Provide properly sized system grounding electrode conductor for grounded system that is based on PV source ungrounded (energized) conductors

ELECTRICAL AND FIRE SAFETY

TABLE 9

353

Basic Safety Requirements of Rooftop Solar PV Installation Based on the PEC 2009

Rooftop Solar PV Component

Safety Requirements of the PEC Article 6.90

Solar cable (PEC 6.90.4): To ensure the electrical safety throughout the entire life of the PV installation cables should be particularly durable and resilient to the harsh environment

Solar PV cables should have the following features:

DC connection, Circuit breaker (DC Main switch) (PEC 6.90.7): The DC circuit breaker is required and allows the installer to repair and maintain the inverter and other AC components while disconnected from the solar PV modules

DC switch should be installed immediately before the inverter

Grid connection, Circuit breaker (AC Main switch) (PEC 6.90.7): The AC circuit breaker is required and allows the operator or authorities to disconnect the PV inverter and other PVA systems from the AC in-house network

AC switch should be installed in the panel board, right after the inverter

Main Circuit Breaker (AC): For safety reasons, the REinstallation must be equipped with a disconnect device for use by the DU to electrically isolate the RE—facility from the DU’s network and to establish working clearances for maintenance, safety and system considerations

The disconnect device should be physically located within 10 ft from the connection point or, if this is not practical, between the PV solar system and the connection point (PEC 6.90.7) The main AC circuit breaker is required and allows the utility to unlock the entire PV system from the local utility grid (PEC 6.90.3)

• • • •

Earth and short circuit protection Very high mechanical strength UV, ozone, and weather resistance Temperature resistance (design temperature on the roof: 70oC) • Single core and double insulation

Source: Derived heavily from Wollny (2014).

of fires in the Philippines. However, as indicated in Fig. 10, its share had declined from 37.8% in 2012 to 26.6% in 2015. The IIEE attributes this decline to the Electrical Safety Enforcement and Awareness (ESEA) campaign it launched in February 2011 in cooperation with International Copper Association and following Presidential Proclamation 193 (June 2011) that declared every month of May as Electrical Safety Month (March, for a long time, has been celebrated as Fire Prevention Month). IIEE, through its national office in Metro Manila and several chapters all over the Philippines, conducts public awareness campaigns on electrical safety, including unity walks, fun runs, barangay seminars, public school inspections, and others (see also Boxes 2 and 3). However, the public

awareness on electrical safety has yet to reach the same level of awareness on fire prevention. Although rooftop solar PV systems have rarely been identified as a cause of electrical fires, the presence of PV systems on roofs of buildings could create substantial hazards during a fire and hamper firefighting efforts. “Rooftop PV systems present unique safety considerations that require better understanding (UL, 2014, p. 3).” For example, the most important characteristic of PV systems is that they produce direct current, and the system continues to generate electricity as long as the modules are exposed to sunlight. Thus, for example, Wollny (2014) recommends, in addition to the disconnecting means mentioned in Table 9, that a fire worker switch that interrupts—when

354 TABLE 10

2.9. WIRING THE SOUTHEAST ASIAN CITY

Visual Inspection Checklist

STRUCTURAL STABILITY OF THE ROOFTOP INSTALLATION ✓ Mounting of the solar panels in the mounting frame (clamping of the solar panels) ✓ Sufficient mounting of the solar panels on the flat roof (loading or fixation with regards to wind impact) ✓ The weight of the modules is approximately 20 kg per module ✓ Stability of the roof surface ✓ Sufficient wide gap between module field and rooftop edge ✓ Will fire compartments not be overbuilt and will there be sufficient distance to the fireproof walls? ✓ Large on-roof PV systems: Is the PV plant divided in different arrays with intermediary spaces (for maintenance and safety reasons)? ✓ Consider an intermediary space as protective measure for the event of a fire in the building (this fire fighters can maintain safety) CABLE HAULING ✓ Protect cable hauling against earth fault and short circuit ✓ Cables have to be UV and temperature resistant ✓ Check if the appropriate DC cable for solar application is used ✓ Preferential use of solar cables ✓ Cables are properly fixed on the substructure or whether there are conducted adequate fixings in order to prevent lying on the roof or on sharp edges ✓ If possible, DC cables should not be hauled inside the building ✓ If possible, cables should be laid in shaded areas ✓ DC cable inside a building shall be contained in metal raceways or enclosures ✓ AC and DC cables have to be physically separated from each other EQUIPMENT GROUNDING ✓ Main equipotential bonding, every non-current carrying metal part of an LV—installation must be connected together and grounded ✓ An effective ground-fault current path has to be established PANEL BOARD ✓ The board is equipped with a visible lockable disconnect device for the solar system ✓ Visible checking of the quality of the workmanship, wiring, termination, conductor, meter, feeder, and fuses (or circuit breakers) ✓ Protection against direct contact and electric shock hazards MARKING AND LABELING ✓ Marking is required on all interior and exterior PV conduits, raceways, enclosures, cable assemblies, and junction boxes in order to alert the fire service to avoid cutting them

355

TECHNICAL STANDARDS

✓ All DC combiner and junction boxes have to be marked as well ✓ Some systems are quite complex; all connections points than relate to locations on the PV should be labeled SCHEMATIC CIRCUIT DIAGRAM ✓ An electrical plan of the PV installation and the integration in the in-house network is displayed on site ✓ A general overview is displayed for emergency worker Source: Derived heavily from Wollny (2014).

PV string circuit

PV array circuit

Inverter output circuit AC panel

SDM

String 1 Combiner box

DC disc.

AC disc.

String 2 Bidirectional meter

PV string circuit conductor

PV array circuit conductor

Inverter output circuit conductor

FIG. 8 The subdivisions of a rooftop solar PV system used in the “Grid-tied Solar PV System Manual with Inspection Checklist.” Source: ACMEEE.

enabled—the DC cable connection to the modules must be in place. This disconnecting device should be located close to the PV modules and protect the fire worker from contact with live PV cables installed on the roofs of the building, and terminating at the inverter.

TECHNICAL STANDARDS In 2015, the International Finance Corporation (IFC) commissioned a market study of distributed energy opportunities in the Philippines, and rooftop solar PV has been identified as one of the DE technologies with huge, if not the

largest, potential. However, during the consultations conducted with various stakeholders, the following were identified as the issues particularly associated with solar PV (Ecofys/ CSI, 2015): (a) lack of industry or local technical standards (b) Is the technology appropriate or suitable for local conditions? (c) product reliability (d) ease of installation (e) Did the technology undergo a certification process? Thus, in the same study, project developers, utilities, and end-users (including industries,

Sec 5.1- Solar PV String (Source) Circuits Inspection Checklist

String (Source) Circuits Checklist Compliant ?

Item No.

Checklist Activity

5.1.1

Reference

Yes

No

NEC 690.31

5.1.3

Check connectors are compatible

5.1.5

Check string cable supports are adequate

NEC 690.31

5.1.7

Check cable enter raceway or metallic enclosures in bushed openings

NEC 110.7, 300.16

NEC 690.32 & 33

5.1.9 5.1.11

For DC STRING wiring inside building premises

5.1.11a

Check Wiring Method is Metallic up to DC Disconnect

NEC 690.31(G)

5.1.11b

Check Wiring Method is labeled

NEC 690.31(G)(3)

5.1.11c

Check Wiring Method supports are adequate

NEC 300 NEC 690.31(G)(2)

5.1.11d

Sec 5.1- Solar PV String (Source) Circuits Inspection Checklist

String (Source) Circuits Checklist Item No.

Checklist Activity

5.1.13

For multi-Strings 5.1.13a

Check PV panels are labelled

5.1.13b Check String circuits are tagged in every common raceway/Combiner box 5.1.15

For DC Grounding System 5.1.13a

Check string EGC is run with the ungrounded conductors

5.1.13b

Check size of EGC

5.1.13c

Check GEC is tapped to the Zero reference system

5.1.13d 5.1.17

Check size of GEC For String Overcurrent Protection

5.1.17a

Check IEC or UL marking

5.1.17b

Check trip-Rating

5.1.17

Check Voltage rating

Reference

Compliant ? Yes

No

Sec 5.1- Solar PV String (Source) Circuits Inspection Checklist

String (Source) Circuits Checklist Item No.

Checklist Activity

5.1.19

For String Circuits with dc-to-dc converters 5.1.19a Check size of conductor is based on dc-to-dc converter rating 5.1.19b

Check converters can be isolated for servicing

Reference

Compliant ? Yes

No

NEC 690.8(A)(5) NEC 690.15 & .15(A)

Sec 5.2 - Solar PV Output Circuits/Inverter Input Inspection Checklist

Output Circuits/Inverter Input Checklist Item No.

Checklist Activity

5.2.1

Reference

Compliant ? Yes No

At the combiner box

5.2.1a

Check combiner bus rating

5.2.1b

if array OCPD is provided, Check rating

5.2.1c

NEC 690.8(B)(1) 690.9(A) 690.15(A)

.1c1

If isolating switch is used, Check Max current is 30A or less

.1c2 .1c3

690.15 690.15(B)

Check combiner disconnect is approved type

690.15(D)

5.2.1d

Check EGC terminal bar is appropriate

408.40

5.2.1e

If system is not solidly grounded, Check EGC is tapped to GTB

690.47(A)

5.2.3a

Check wiring method is metallic and mechanically secured

690.31(G)

5.2.3b

Check raceway method label is provided

690.31(G)(3)

5.2.3c

Check array wire sizes, including EGC

690.8(B)

5.2.3d

Check array wires are color-coded

310.110

5.2.3

At the array circuit wiring

.3d1

For solidly grounded system, Check grounded wire is WHITE

200

.3d2

For ANY system, Check EGC wire is GREEN

250.119

Continued

Sec 5.2 - Solar PV Output Circuits/Inverter Input Inspection Checklist

Output Circuits/Inverter Input Checklist Item No.

Checklist Activity

5.2.5

Reference

Compliant ? Yes No

At the inverter location

5.2.5a

690.15

5.2.5b

690.15(B)

5.2.5c

Check warning sign

5.2.5d

Check each ungrounded conductor is provided with OCPD

690.9(A)

5.2.5e

Check Ground-fault protection is appropriately provided

690.41(B)

5.2.5f

If system is solidly grounded, Check GEC is installed

690.47(A)

690.15(B)

5.2.5g

690.12

Sec 5.3- Solar PV Inverter Output Inspection Checklist

Inverter Output Checklist Item No.

Checklist Activity

5.3.1

Check size of AC output conductor, including EGC

5.3.3

For AC output Overcurrent protection

Reference

At inverter location, NEC 705.12(D)(2)

5.3.3a

Check trip-rating of OCPD

NEC 690.6(D), 240.4

5.3.3b

Check OCPD for reverse current feed listing, check UL 489 marking

NEC 705.12(D)(4)

5.3.5

Check AC disconnecting means is provided

NEC 705.20 - 22

5.3.7

Check Markings

NEC 690.17(E)

At Point of Interconnection 5.3.9

Check connection is made to a dedicated CB

5.3.11

If Fuse is used, check AC disconnect is provided

NEC 690.15 - 16

5.3.13

Check Busbar ampacity at Point of Connection

NEC 705.12(D)(2)

5.3.15

NEC 705.12(D)(1)

If sum of CB supply ratings is 120%, check positioning of CBs 5.3.15a

Check position of dedicated CB

NEC 705.12(D)(2)

5.3.15b

Check Warning sign is placed

NEC 705.12(D)(72)

At Service Equipment 5.3.17

FIG. 9

Check power directory

ACMEEE Rooftop solar PV Checklists. Source: ACMEEE.

NEC 705.10

Compliant ? Yes No

TECHNICAL STANDARDS

FIG. 10

359

Electrical Fires in the Philippines. Source: BFP.

BOX 2

ESEA ESEA, or Electrical Safety Enforcement and Awareness, is the Electrical Safety Campaign of the IIEE in the Philippines launched in May 2011 with financial and technical support from International Copper Association. One of the immediate outcomes of the campaign was Presidential Proclamation 193 that was signed in June of the same year and has declared May as Electrical Safety Month. The ultimate objective of ESEA is the enforcement of the Philippine Electrical Code as the mandatory minimum standards of electrical safety in all electrical installations. Volume 1 of the PEC contains the minimum electrical

commercial establishments, and consumers) called for the establishment of national standards on solar PV systems and components, particularly in the face of rapid growth in the deployment of these technologies. Standards are essential for ensuring safety and quality of products and services. Harmonization

safety requirements in homes and buildings, or low voltage installations. ESEA tries to achieve this objective through increasing public awareness and capacity building of electrical practitioners, starting with local government inspectors, who are the enforcers of the requirements of the PEC. Besides awareness campaigns that are now conducted by IIEE chapters all over the country, ESEA also conducted regional training of local government inspectors in 2014–2016 on key provisions of the PEC. Source: Author.

of national standards facilitates the free flow of trade of goods and services, as well as human capital. Both are particularly relevant for solar PV. For one, the reliability, performance, and durability of solar PV equipment and components are critical for the smooth operations of solar PV systems, from small off-grid microscale

360

2.9. WIRING THE SOUTHEAST ASIAN CITY

BOX 3 While supporting the enforcement of the PEC in the Philippines through ESEA, ICA is also supporting the harmonization of electrical safety installation and inspection standards in the ASEAN. To date, each country has its own inspection and installation standards to promote electrical safety in low voltage installations. However, according to the Institutions of Engineers, Malaysia (IEM), the requirements of IEC 60364 Low Voltage Electrical Installation standards are the ones widely adopted in the ASEAN. Except of the Philippines, which refers to the NEC. IEM on behalf of the ASEAN Federation

systems to utility scale solar PV power plants. Second, solar PV cells and modules are the most heavily traded among clean energy technologies worldwide, with trade reaching nearly USD 52 billion in 2015 (Kelly and Sugathan, 2017). So far, standards in the solar PV sector have not emerged as a source of trade friction among countries. But with the rapidly growing deployment of solar PV systems, the development of national standards or adoption of international standards and harmonization of national standards will become a necessity (Kelly and Sugathan, 2017). The international development of solar PV standards has been influenced by, and thus parallels, the development of solar PV industry. During the “precursor and embryonic” phases that are characterized by scientific discovery and basic technology development, standards development has focused on basic measurement principles and validation of technology functions. During the “nurture and growth” phases and progressing toward “maturity,” standards development focused on performance, safety, and quality (Kelly and Sugathan, 2017).

of Engineering Organizations (AFEO) is leading an initiative to harmonize electrical inspection and installation standards in the region using IEC 60364 series as reference. The IEC 60364 series include the international standard IEC 60364-7-712:2017 Electrical Installations of Buildings: Requirements for special installations or locations—solar photovoltaic power supply systems, the parallel version of Art 6.90 of the Philippine Electrical Code which is based on Article 690 of the NEC. Source: Author.

Six international standards development organizations (SDOs) have had the most impact on the solar PV industry. Table 11 lists these SDOs and defines respective membership and focus of activities. Many national solar PV standards are based on the IEC standards. The IEC Technical Committee 82 is responsible for establishing international standards on solar PV systems and has developed and published 86 standards and technical specifications (as of March 2015), including for modules, balance of systems or system components, both for electrical safety and system performance. The IEC TC 82 Solar photovoltaic energy systems consist of 39 participating countries and 10 observing counties, and more than 350 experts who participate in one or more of the six technical working groups (TWG) and three Joint Working groups (JWG) that prepare the IEC standards of different categories. Of the 69 IEC PV standards published by TC82, most were prepared by WG 2: Nonconcentrating Modules of Solar PV and JWG 1: Guideline for Decentralized Rural Electrification (DRE) with 26 and 18 IEC standards, respectively (Table 12).

361

TECHNICAL STANDARDS

TABLE 11

SDOs With Solar PV Standards

SDO

Code

Membership

Focus of Activities

International Electrotechnical Commission

IEC

National Committees

Performance and safety of products, systems, and services

ASTM International

ASTM

Individual Experts

Measurement of principles and specialty tests

Semiconductor Equipment Manufacturers’ Institute

SEMI

Member Companies

Primary Manufacturing-related (materials and equipment)

Underwriters’ Laboratories

UL

Invited Experts

Product safety

International Code Council

ICC

Invited Experts

Building and fire codes

Institute of Electrical and Electronics Engineers

IEEE

Individual Experts

Grid-connected codes

Source: Kelly and Sugathan (2017).

TABLE 12

IEC PV Standards

TWG/JWG Working Groups (WG) 5 6 WGs

Titles Total IEC PV Standards 5 69

Total No. of IEC Publications

WG1

Glossary

1

WG2

Modules, nonconcentrating

26

WG3

Systems

9

WG6

Balance-of-system (BOS) components

6

WG7

Concentrator modules

5

WG8

Photovoltaic (PV) cells

2

JWG1

JCG TC 82/TC 88/TC 21/SC 21A (DRE), or of-grid systems

18

JWG82

TC21/TC82—Secondary cells and batteries for Renewable Energy Storage Managed by TC 21

1

JWG32

Electrical safety of PV system installations Managed by TC 64

1

Joint Working Groups (JWG) ¼ 3 JWGs

Source: IEC.

In the Philippines, standards development rests mainly with the Bureau of Philippine Standards (BPS) of the Department of Trade and Industry. BPS was established through RA 4109 Standardization Law of the Philippines in

1964. In support of RA 4109, RA 7394 Consumers’ Act of the Philippines, passed in 1992, named three Standards Development Bodies which shall develop, enforce, and regulate standards in the Philippines:

362 TABLE 13

2.9. WIRING THE SOUTHEAST ASIAN CITY

Participation of ASEAN-6 in IEC TC 82

ASEAN 6 (CODE)

IEC Membership

P/O Status

Subcommittee (WG/JWG) Membership

Indonesia (ID)

Full member

P

–

Malaysia (MY)

Full member

P

WG1, WG3, WG6, JWG1

Philippines (PH)

–

–

–

Singapore (SG)

Full member

P

WG2

Thailand (TH)

Full member

P

WG3, WG6, JWG1

Vietnam (VN)

–

–

–

• Department of Agriculture—standards for agricultural products • Department of Health—standards for food, health products, and health devices • Department of Trade and Industry (BPS)— standards for products not covered by DA and DOH The BPS as the national standardization body promulgates the standards created by DA and DOH as Philippine National Standard (PNS). It can also liaison with other Standards Development Organizations (SDOs) to promulgate or adopt the standards these other SDOs develop as PNS given that they conform with BPS Directives, which are in accordance with ISO (International Standards Organization). Standards developed by BPS, as much as possible, should be aligned with International Standards to reduce barriers to trade. ICA conducted a comparative study of national solar PV standards and adoption of international standards among the six major ASEAN members—Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam (or the ASEAN-6). Among the ASEAN -6 countries, four joined in the IEC TC 82, namely: Indonesia, Malaysia, Singapore, Thailand with full membership and Participating status (P-member). Malaysia, Singapore, and Thailand are active members in the subcommittees of IEC TC82. Philippines and Vietnam are not members of IEC TC 82 (see Table 13.)

There are 69 national technical standards on solar PV in ASEAN region, 53 of which are IEC standards adopted (with the identical title). Malaysia has the highest number of IEC standards adopted with 20 MS/IEC standards, it is followed by the Philippines with 14 PNS/IEC; Singapore adopted 10 IEC standards, while Indonesia adopted 6 IEC standards. Most of the standards adopted are on Nonconcentrating Module (WG2) (see Tables 14 and 15). The effective implementation and enforcement of standards is also tied to the presence of testing laboratories. Thus, the study also surveyed the presence of solar PV testing laboratories in the ASEAN-6. Table 16 lists the solar PV testing laboratories in ASEAN-6. Apparently, the Philippines has a solar PV testing laboratory at the University of the Philippines, but it is not known whether it remains functional. In any case, the Philippines, in this regard, lags behind its neighbors, even those who have adopted only a few IEC solar PV system standards. For example, Indonesia, Singapore, and Vietnam have adopted fewer IEC standards than the Philippines, but have at least five solar PV tesing laboratories. The final recommendations from this ICA study are: • Indonesia, Philippines, Thailand, and Vietnam will need to come up with the international standards on System, BOS,

TABLE 14

Adoption of ASEAN-6 of IEC TC 82 Standards Working Groups

TC-82

WG1

WG2

WG3

WG6

Joint Working Groups WG7

WG8

JWG1

JWG82

Total No. of Standards

JWG 32

ID

5

MY

1

4

PH

1

13

3

1

1

1

10

1

1

6

17

1

20

22

14

14

10

10

SG

6

1

TH

2

2

3

VN

1

1

3

53

69

Total

TECHNICAL STANDARDS

BalanceofSecondary Electrical IEC National System Concentrator Photovoltaic Guidelines Cells and Safety PV Solar PV Stds on ASEAN Module, Countries Glossary Nonconcentrating System BOS Modules (PV) Cell for DRE Batteries Installation Adopted Solar PV

363

364

2.9. WIRING THE SOUTHEAST ASIAN CITY

TABLE 15

The IEC TC 82 Standards That Have Been Adopted by the Philippines

Items

PNS IEC Standards on Solar PV

1

PNS IEC 60904-1:2014—Photovoltaic devices—Part 1: Measurement of photovoltaic current-voltage characteristics

2

PNS IEC 60904-2:2014—Photovoltaic devices—Part 2: Requirements for reference solar devices

3

PNS IEC 60904-3:2014—Photovoltaic devices—Part 3: Measurement principles for terrestrial photovoltaic (PV) solar devices with reference spectral irradiance data

4

PNS IEC 60904-4:2014—Photovoltaic devices—Part 4: Reference solar devices—Procedures for establishing calibration traceability

5

PNS IEC 60904-5:2014—Photovoltaic devices—Part 5: Determination of the equivalent cell temperature (ECT) of photovoltaic (PV) devices by the open-circuit voltage method

6

PNS IEC 60904-7 Photovoltaic devices—Part 7: Computation of the spectral mismatch correction for measurements of photovoltaic devices

7

PNS IEC 60904-8:2014—Photovoltaic devices—Part 8: Measurement of spectral response of a photovoltaic (PV) device

8

PNS IEC 60904-9:2014—Photovoltaic devices—Part 9: Solar simulator performance requirements

9

PNS IEC 60904-10:2014—Photovoltaic devices—Part 10: Methods of linearity measurement

10

PNS IEC 61215:2014—Crystalline silicon terrestrial photovoltaic (PV) modules—and type approval Design qualification

11

PNS IEC 61345:2014—UV test for photovoltaic (PV) modules

12

PNS IEC 61646:2014—Thin-film terrestrial photovoltaic (PV) modules—Design qualification and type approval

13

PNS IEC 61701:2014—Salt mist corrosion testing of photovoltaic (PV) modules

14

PNS IEC/TS 61836:2012—Solar photovoltaic energy systems—Terms and Symbols

Source: BPS.

Concentrator modules, Guidelines and Secondary cells and batteries. • Indonesia should consider adapting International standards to harmonize them to ASEAN countries. • The Philippines and Vietnam should consider being members of the TC82 to partake in the deliberation and development of the IEC/ISO solar PV standards. • Singapore, even with its more than five testing laboratories, is only a member of one IEC technical committee (WG2). Their participation in some TCs may significantly contribute to the ASEAN members, considering they have the same or similar

climate conditions in the neighboring countries. • Vietnam, with five testing facilities on Solar PV, should consider being part of the technical committee of TC82. Their attendance might make a significant contribution to ASEAN countries.

TECHNICAL CAPACITY Associated with both technical standards and electrical safety is the issue of technical capacity, or competence. Coupled with lack or inadequate technical standards and outdated electrical safety code, the issues or barriers being faced

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TECHNICAL CAPACITY

TABLE 16

The Solar PV Testing Laboratories Within ASEAN-6

ASEAN–6

Solar Testing Laboratory—Location

Component of Testing

Indonesia

1. Solar Home Systems and Component—Energy Technology Center (B2TE) BPPT 2. Energy Conversion and Conservation Centre (PTKKE) 3. Indonesia National Science Institute (LIPI) 4. Institute of Technology Bandung (ITB)

Testing PV System, BOS, Materials Test of small inverter for DC lamps in the SHS

Malaysia

1. UM Power Energy Dedicated Advanced Center (UMPEDAC)— University of Malaya 2. Inverter Quality Control Centre—Faculty of Electrical Engineering, Universiti Teknologi Malaysia

PV System Testing of Inverter

Philippines

Solar PV Testing Lab.—University of the Philippines

Testing of Material, Systems

Singapore

Solar Energy Research Institute of Singapore (SERIS) administered labs of different places:

Conduct: Solar PV in-house R&D labs, Module characterization and testing including: Testing of industrial silicon wafer solar cells, PV modules for the tropics, PV module testing, highperformance PV systems for the tropics, R&D in management of the variability of PV for grids with a high solar share

1. 2. 3. 4. 5.

PV Characterization & Calibration Lab. Organic Solar Cells Lab Liquid based functional coating lab Solar and Energy efficient building lab Outdoor facilities – Large rooftop testing of solar technology (500 m2) – Meteorological station (15 m2 rooftop area) 6. PV module development and testing facility—off-campus at CleanTech One at the Nanyang Technological University. 7. The new National Solarisation Centre (NSC) under SERIS Thailand

1. CES Solar Cells Testing Center (CSSC) at the King Mongkut’s University of Technology Thonburi, (KMUTT) in Bangkok 2. Intertek—PV Testing facility with services such as testing, inspecting and certifying products

Services offered such as testing, inspecting and certifying products; Test of PV performance, gain efficiencies

Vietnam

1. 2. 3. 4. 5.

The five labs are capable of testing PV modules, Balance of System (BOS), and testing inverter in the laboratory

Quality Assurance and Testing Center 1 (Quatest 1), Hanoi Quality Assurance and Testing Center 2 (Quatest 2), Danang City Quality Assurance and Testing Center 3 (Quatest 3), HCMC Long An Redsun energy Ltd, Long An Quality Assurance And Testing Center of Binh Duong province

Source: Author

by the Philippines rooftop solar PV industry are the lack of certified qualifications or training program in rooftop solar PV, as well as the lack of accreditation program for rooftop solar PV installers or system integrators. A national certification program for SHS or off-grid solar PV system up to 1 kWp design, installation, and servicing and maintenance was developed in 2007–2008 and launched in 2011–2012 by TESDA through the USAID project AMORE

and with support from the International Copper Association. A similar qualifications program should be in place for rooftop solar PV. Notwithstanding, there have been separate, even if uncoordinated efforts toward this end. For example, the Meralco Power Academy (MPA) conducted 5-day basic training on rooftop solar PV systems (Table 17) and 4-day advanced training on solar PV project development (Table 18), based on certification programs

366 TABLE 17

2.9. WIRING THE SOUTHEAST ASIAN CITY

Basic Training on Rooftop Solar PV Systems at MPA

Duration

Modules

Day 1

1. 2. 3. 4.

Day 2

5. Installing system components 6. PV system materials 7. PV system electrical installation

Day 3

8. System mechanical installation 9. Performance analysis, maintenance, commissioning, and trouble-shooting 10. Solar PV net metering 11. Hands-on PV installation

Day 4

12. 13. 14. 15. 16.

Day 5

17. Hands-on ground mount PV 18. Discussion on panelboard/inverter wall 19. Advanced topics

Safety basics Electrical basics Solar energy fundamentals PV Modules

Fastening PV to roofing systems Hands-on roofing and PV Hands-on PV on sloped roofs Breakdown of sloped roofs Solar PV parts OEM/supply

Source: MPA.

TABLE 18

Advanced Course on Solar PV Project Development at MPA

Duration

Topics

Day 1

1. Overview of the global and local solar market developments 2. Types of solar PV developments 3. Solar PV design (on-grid and off-grid)

Day 2

4. Predevelopment activities 5. Site development and civil design 6. Solar equipment, technology and specification

Day 3

7. Developing solar PV project feasibility 8. Solar PV project development 9. Project evaluation and analysis

Day 4

10. 11. 12. 13. 14. 15.

Source: MPA.

Solar PV project finance and modeling Solar project financing Evaluating risks Organizational structuring Financing strategies Other financial considerations

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TECHNICAL CAPACITY

of the North American Board of Certified Energy Practitioners (NABCEP). GIZ also conducted solar PV training based on separate training modules. However, these training programs, though very useful in improving the capacity of practitioners, still fall short of being certified qualifications or competency programs. Two important outcomes of the engagement with the LGUs are the capacity building of local government electrical inspectors and development of rooftop solar PV electrical inspection manual and checklist that is being pursued by the ACMEEE, Meralco, and the International Copper Association. To date, the ICA has organized a technical forum for LGUs and developed the inspection manual and checklist. Meralco, along with other stakeholders, supported the technical forum and provided inputs in the development of the manual. The three parties are collaborating toward the dissemination of the manual to LGUs as a tool for building capacity of local government electrical inspectors in rooftop solar PV.

Basic Knowledge

Design Knowledge

• Basics of solar PV systems

• Technical drawings

• Basic electricity and electrical system

• Electrical drawings

• Electrical workmanship • Solar PV components

• Site surveys • Electrical system design • Solar PV system design • Budgeting and procurement • Finance analysis

FIG. 11

At the regional level, APEC supported a collaboration between US DOE and the International Copper Association toward the development of a training curriculum on rooftop solar PV design and installation for ASEAN. The training curriculum, which was based on a compendium of accredited training curriculum in the US (NABCEP), Australia (AEC), and Europe, was developed in consultation with renewable energy policy-makers and selected national training institutes in ASEAN, including the Philippines. To address the lack of or inadequate capacity in rooftop solar PV, for example, it was recommended that relevant training institutes adopt this APEC training curriculum on rooftop solar PV design and installation. It was also recommended that TESDA, who participated in the development and dissemination of this APEC training curriculum, starts with this curriculum as reference in the development of a national certification program for rooftop solar PV design and installation. Fig. 11 summarizes the modules of the APEC curriculum.

Installation Knowledge

Hands On Knowledge

• Commissioning and performance verification • Maintenance and inspection • System monitoring • Troubleshooting • Common and brand specific installation procedures • Industry standards and safety practices • Safety procedures

• Basic electrical instrumentation • Electrical circuit measurements • Solar PV system performance verification • Inspection and monitoring • Site survey • Safety procedures • System installation

The APEC/ICA curriculum for rooftop solar PV design and installation. Source: Derived from APEC (2015).

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2.9. WIRING THE SOUTHEAST ASIAN CITY

DOE is in the best position to coordinate all these efforts toward improving technical capacity in rooftop solar PV. And the NAMA Facility should be an opportunity to assume this role. To be sure, the project will include the development of an accreditation program for installers or system integrators (service providers). DOE is also talking with TESDA toward the development of a national certification program similar to its SHS certification program, but focused on rooftop solar PV under this facility.

CONCLUDING REMARKS The Philippine government has been successful in accelerating the uptake of rooftop solar PV through the net metering policy. But growth has been concentrated in Metro Manila and the residential sector, and so the market potential remains huge. In the meantime, the net metering policy is being reviewed to improve its design and implementation. A NAMA Facility project is also being developed aimed primarily toward enhancing the financing of rooftop solar PV. Other aspects that will affect sustainability in the application of the technology, particularly standards development, electrical safety regulation, and local capacity development in the design, installation and inspection of rooftop solar PV, have been overlooked. But it is not too late to address the gaps in these aspects of the technology. In fact, parallel, though uncoordinated, efforts that address these gaps have been initiated by various stakeholders. The DOE should coordinate these efforts. Specifically, it should lead or support the following activities in the short- and medium-term: • Work with the BPS toward the establishment of a separate technical committee that will continue the deliberation and adoption of standards (these technical committee could be just for solar PV or for all renewable energy technologies, considering and anticipating growth in other sectors)

• Training of local government inspectors on rooftop solar PV and national dissemination of the new rooftop solar PV manual and inspection checklist being developed by ACMEEE • Government accreditation of solar PV integrators (designers and installers) • Work with TESDA in the development of a national certification program on rooftop solar PV design, installation, inspection, and servicing and maintenance • The NAMA Facility project, although still waiting final approval at the time of this writing, provides funding opportunities to address these gaps, and should integrate the preceding activities.

Acknowledgement and Disclaimer The article is derived largely from the work of the author as representative of International Copper Association Southeast Asia in the Philippines between 2010 and 2017 and as manager of its SEA Energy Access and Renewable Energy program between 2011 and 2014. During which period and in such capacity he was in contact with most of the authors/persons and organizations mentioned as sources in this article. However, the accuracy of the information and insights in this article are solely his responsibility and should not be attributed to International Copper Association nor the persons/authors and other organizations mentioned in the article.

References ADB, 2014. Handbook for Rooftop Solar Development in Asia. ADB, Manila. APEC, 2015. Training Curriculum for Solar PV Installers and System Designers, Final Report. APEC. Center for Clean Air Policy, 2017. “Transforming the energy sector in the Philippines,” http://ccap.org/ccap-solarnama-in-the-philippines-wins-financing/. Deutsche Bank, 2015. Solar Industry Report. Deutsche Bank Markets Research, 27 February. Ecofys and CSI, 2015. “Philippines’ Distributed Energy Market: Final Report,” Study Commissioned by IFC Philippines. April. Eghtesady, B., 2012. “What are the basic electrical safety issues and remedies in solar photovoltaic installations?”, presentation, City of Los Angeles Department

FURTHER READING

of Building and Safety, http://sites.ieee.org/clas-sysc/ files/2012/11/What-are-the-basic-electrical-safetyissues-and-Version-2.pdf. ERC, 2016. Proposed Amendment to Resolution No. 9, Series of 2013, A Resolution Adopting the Rules Enabling the Net-Metering Program for Renewable Energy. GIZ, (Ed.), 2014a. Net-Metering Reference Guide. second ed. GIZ, Makati City. International Energy Agency, 2016. Trends 2016 in Photovoltaic Applications, 21st ed. IEA, Paris. International Finance Corporation, 2014. Harnessing Energy from the Sun: Empowering Rooftop Owners, White Paper on Grid-Connected Rooftop Solar Photovoltaic Development Models. IFC, New Delhi. Kelly, G., Sugathan, M., 2017. Standards in the Solar Photovoltaic Value Chain in Relation to International Trade. Issue Paper, International Centre for Trade and Sustainable Development, March. NAMA Facility, 2017. “Philippines–enabling distributed solar power in the Philippines,” http://www.nama-

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facility.org/projects/enabling-distributed-solar-powerin-the-philippines/. Reodica, Anna Maria A., 2015. “Integrating renewables into the distribution network: MERALCO experience,” presentation at the Technical Forum on Rooftop Solar PV, 10 December 2015, Pasig City, Philippines. UL, 2014. PV system effects on roofing flammability. Sust. Energy J. New Science, December. Wollny, M., 2014. “LGU Reference Paper in Assessing the Safety of Solar PV Rooftop Installations. GIZ,” December.

Further Reading ERC, 2013. Resolution No. 09, Series of 2013: A Resolution Adopting the Rules Enabling the Net-Metering Program for Renewable Energy. GIZ, 2014b. Solar PV Guidebook Philippines. GIZ, Manila.