PHILIPPINE CHRISTIAN UNIVERSITY

Graduate School Studies

NATURAL POWER FOR A GREENER & RICHER NEGROS

An Environmental Planning Advocacy Report

for
Prof.Geronimo Antonio B.Singson, MPA, REB,EnP,MMEP

By
John Marie Lizares REB, REC
 PHILIPPINE CHRISTIAN UNIVERSITY
Graduate School Studies

Table of Contents

Background ………..1

Statement of the Problem ………..1

Scope & Delimitation of Terms ………..5
Related Literature ………..7
Hypothesis ………..7
Assumptions ………..7
Results ………..9
Discussion ……….11
Conclusion ……….14
Recommendation ……….14
Appendix ……….18
NATURAL POWER FOR A GREENER AND RICHER NEGROS

INTRODUCTION

BACKGROUND

a. Negros Occidental is one of the

bigger provinces.
b. The Provincial Administration of Negros
Occidental has been pushing for Water
and Food Security. The province
has been very successful with its programs.
c. Negros Occidental is one of the stronger producers of Geothermal
power together with Laguna, Sorsogon, Albay, Batangas, Leyte and
Northern Cotabato.
d. It is one of the provinces with a population that has a very strong
environmental advocacy
e. The Bacolod City is in the top 10 or even top 5 destinations for
BPO/IT/Outsourcing cities. But GDP per capita of Negros is 25-35
lower compared to Cebu.
f. Negros Occidental is the No.1. Organic food producer of the Philippines
g. Power cost in the Bacolod City and surrounding areas is around
12.67-13.6 pesos/kw- hour including adjustments.
h. Many of the food products from the province have very low value
added and/or are not packaged properly.

STATEMENT OF THE PROBLEM

1. Even though Negros Occidental is one of the bigger provinces, it lags

behind Cavite, Pampanga , Ilocos Norte and Cagayan de Oro with regards to

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Solar Power. It lags behind Ilocos Norte, Rizal, Guimaras and Aklan with
regards to Wind Power.

2. Power in Bacolod City is 12.6-13.6

pesos/kw-hr compared to around
12.50pesos/kw-hr in NCR and 12.7-
14.5 pesos/kw-hr Cebu City and
surrounding areas.

3. Since shipping is expensive in

Negros because of the absence of an international port and power is

relatively expensive compared to NCR, the province does not have a very
good manufacturing base. The handicap is even exaggerated with a not so
favorable cost of power compared to Manila.

4. The province has a lot of handicrafts, but the industry is not big enough
to give good wages to other people. The handicrafts are beautiful but not
cheap compared to plastic items which would serve the same purpose. So
the province need to look for gainful employment for more people .

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We need to increase our manufacturing base so that more people
will be employed and we could improve the value of the agricultural
products grown in the province. We should look for ways to bring
down the cost like power and shipping. We need to increase
production without increasing the carbon footprint of the activity so
that the quality of life of the Negrenses will improve.

a. Sugar will not be brought to other

places as sugar only but also as candy,
packaged pastries etc.

b. Chocolates from cacao could easily be produced like what Malaysia

does. If UAE combines dates with chocolates and other ingredients.
Both these countries have strong power/energy sectors. With a better
value for the cacao, cacao growing can easily be expanded and made
efficient.
c. Negros could go into widespread
Food canning, processing/packaging
of like sugar, bangus, tilapia, coffee,
cacao in which will add value to the

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 product.
c.1. Negros produces a lot of pork.
It is the 3rd largest producer after
Bulacan and Batangas. But we do
not have a lot of canning. Cebu and
Iloilo does a lot of canning even
though they are just the 6th and the 4th largest producer.

With better value added to the final product, the transfer cost
from the farmer to the processor/packager can be
. increased. This will increase the incentive
. for the farmers to increase their production.
. This will improve not just the urban
. economy but also Rural economy.

To add to more employment, Negros Occ.needs to expand the

BPO/IT/outsourcing business. A big cost of the BPO business is the cost of
electricity to run the computers for encoding, downloading and uploading
of data, processing of data etc. Power is consumed a lot also with the air
conditioning, video communications etc by these businesses. If Negros
Occ. Could bring down the cost of power substantially, more BPO
businesses would do business in the province.

With 30-50% cheaper power,

more people will be employed
in the Packing/processing,
and also in Agriculture.

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SCOPE AND DELIMITION OF TERMS

The study will be limited to two areas:

a. One area for the Power and BPO tandem

The study can determine if a decrease in
power cost by 30-50% will enable the
location to increase its competitiveness.
The study can make a recommendation if it
is viable to put wind turbines among houses.
a.1. Delimitatons However, the
study can not determine if the 30-50%
savings in electricity can increase the employment of BPO by 30,000-
80,000. This study will not determine if the cost of moving the big
posts of the wind turbines from the nearest seaport will be prohibitive
commercial areas.

Another area is for the Power and manu-

facturing tandem
The study will determine that
a decrease in power cost of 30-50% will
enable the location to encourage more
investors in food processing, packaging etc.
Because there are some solar companies considering a Solar & wind
farm project in Pulupandan, then the location is worth considering. If
the property to be developed for the food processing/packaging zone
together with the solar & wind farm is within 1 kilometer from the
Pulupandan seaport and also within 1 kilometer from the future
Guimaras-Negros bridge, then the location would be very viable.

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b.1.Delimitations. But the study will not determine if the savings in power
can bring in an additional employment of 20,000-50,000 employees. The
study will not determine also how much of the volume to be produced from
these new enterprises will reach the international market. We shall not know
how much increase in revenue from manufactured good since we do not
know how many people will invest in this activities. Capitalization of the
plants or equipment for a canning plant, chocolate making and storage,
vacuum sealing and other packaging options are not known as of the
moment.

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REVIEW ON RELATED LITERATURE ( See Appendix)

HYPOTHESIS

With 30-50% cheaper power, more people will be employed in the

Food packing/processing, BPO and also in Agriculture.

ASSUMPTIONS

a. Though initial discussion by some power players to enter

Pulupandan, it is assumed that the town would allow tall wind
turbines to be placed near the shoreline or within 1 kilometer
from the area where the bridge from Guimaras will connect
with Negros.
b. It is assumed that a manufacturing economic zone will be
established within 1 kilometer from the area where the bridge
from Guimaras will connect with Negros.

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c. Some power companies are looking for properties valued at
200pesos/m2 or lower. This might not be realizable. However, it is
assumed that if the power producer and the food processor/
packager are one and the same company and the sites are
adjacent to each other, they would be able to save a lot on the
taxes and transmission costs. They would be able to bring
down the final cost of power by 30-50%

d. Some engineers in the power industry have stated that power more
could be produced per sq.m. of property if one combines the solar and
wind turbines. Their explanations are logical. The wind turbines
should not be behind one another. That means there should be
sizeable distance between one wind turbine and another wind turbine
at the back. So with a big distance between the front and rear
turbine, there is no reason why the power producer could not put solar
panels in between the wind turbines. The shadow of the wind turbines
are not that sizeable so much so that solar panels could still absorb so
much sun. So it is assumed that combination of wind turbines
and solar panels could produce more power per square meter
of land.

e. With the power adjustments (foreign exchange and fuel costs), the
power cost in Bacolod City varies from 12.67- 13.6. For the
presentation in power savings, the cost of Power in Bacolod
City and the surrounding areas will be based on 13pesos/kwhr.
f. It is assumed that all sites considered for solar and wind power
would have regular power from the national grid to cover for
power during night operations and power beyond the capacity
of the solar and wind systems.

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 g. In the computation of the cost of power from the solar system( and
also wind power), a big cost is purchase price. So that the cost could
be amortized, it is assumed that we would need to replace the
entire system for a more efficient one every 12 years.

RESULTS

Two sources of information regarding the cost of solar power. Initial cost
will include the purchasing and interest price.

Result one is from an article..Cost of purchase is 360,000 pesos

Interest cost 128,111( 7.25 years)

total cost………………………………………P488,111
Power- 448kwhrs/month or
Power in 12 years……………………….64,512 kwhrs
Cost per kwhr……………………………. 7.5662 pesos/kwhr

Installation area= 17m2 for 4kwp system

Result two is from a supplier..Cost of purchase is 2,400,000 pesos

Interest cost 401,548( 3years )

total cost………………………………………P2,801,548
Power- 6,000 kwhrs/month( more or less at 50%effeciency) or
Power in 12 years……………………….864,000 kwhrs
Cost per kwhr……………………………. 3.243 pesos/kwhr
Est.installation area= 255m2 for 60kwp system 1-phase

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Average cost per kwhr……………………….. 5.405 pesos/kwhr

Even if we add 10% for cost of Maintenance/cleaning

( This is what we shall use for solar power cost in succeeding

discussion)………………………….………………6.0 pesos/kwhr

With 8000kwhr/month solar power system, what could we expect?

What can it power?

A solar power system with 8000 kwhr /month or 267kwhr/day will have
26.7kw/hr( At 10hrs operation).

We could have 8 HP aircon to cool a building floor area of around

130m2 with 34 people and power 34computers.

How big an area do you need?

We would need around 303m2 of installation area. So aside from the

roof area of 130m2, another 173m2 of grounds is needed

(based on the 17m2 for every 15kwhrs/day or 448kwhrs/month. Since the

power was increased by 17.8 x, the area will also be increased by 17.8x) .

How much will a 8000khhr/month power system cost?

If based on the attached literature( maybe more than 5-10years old),

8000kwhr/month or 267kwhr/day would cost around 6.4M

( 360,000 pesos x 17.8)

If based on a current supplier’s price , it would be 3.2m pesos.

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So price then would range from 3.2M-6.4M or average of 4.8M.

So Solar power has indeed become a lot cheaper than

current power rates.

DISCUSSION

BPO business- North American Market

a. For the North American Market, maybe 80-82% of the power

consumption will be during the night time operation. Majority of the
accounting/payroll, HR training of new agents, purchasing of local
necessities are done during daytime (maybe 18-20% of total power
consumption). The company could still have some savings by using some
solar power.

a.1. Using 8,000 kwhr again with 80% power consumption during the
night=8000x80%=6400kwhr.

Cost of power for night operations= 6400x13 pesos/kwhr= 83,200pesos(

night operations)

Cost of power day operations 8000x20%=1600 x6 pesos= 9600pesos

Total power cost= 92,800 pesos or 11.60pesos or average savings of

1.40pesos or 10.77% of 13pesos/kwhr.
BPO - European Market

b. The European market with say 5 hours of Philippine daytime

operation( London is 7hours behind while Paris, Madrid, Berlin and
Rome are 5hours behind) with say 65% power consumption using
solar power and 35% using regular power.

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 b.1. Using 8,000 kwhr again with 35% power consumption during the
night=8000x35% = 2800 kwhr

Cost of power for night operations= 2800kwhr x 13pesos/kwhr-=

36,400pesos night operations)

Cost of power day operations 8000x65% = 5200 kwhr x6 pesos= 31,200

pesos

Total power cost= 67,600 pesos or 8.45pesos or average savings of 4.55

pesos/kwhr or 35% of 13pesos/kwhr.

12
BPO - Australian and New Zealand Market

c. New Zealand and Australian Market Melbourne & Sydney are 2hours
ahead while Auckland and Wellington are 4hours ahead) with say 80%
power consumption using solar power and 20% using regular power.

c.1. Using 8,000 kwhr again with 20% power consumption during the night
or beyond capacity of solar power, 8000x20% = 1600kwhr

Cost of power for night operations= 1600x 13pesos/kwhr= 20,800 pesos

for regular power

Cost of power day operations 8000x80% = 6,400kwhr x6 pesos=

38,400pesos

Total power cost= 59,200pesos or 7.40 pesos/kwhr or average savings of

5.6 pesos/kwhr or 43.07% of 13pesos/kwhr.

For Food packaging/processing..

d.Using 8,000 kwhr again with 10% power consumption during or beyond
capacity of the solar power, 8000x10% = 800kwhr

Cost of power for off peak operations= 800x 13pesos/kwhr-= 10,400

pesos for regular power

Cost of power day operations 8000x90% = 7200kwhr x6 pesos=

43,200pesos

Total power cost= 53,600pesos or 6.7 pesos/kwhr or average savings of 6.3

pesos/kwhr or 48.46% of 13pesos/kwhr.

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CONCLUSION

A. The BPO Enterprises in Negros would be able to increase their

competitiveness if they utilize solar power.

For BPO, market to be targeted according to priority will be:

Australian/New Zealand market with 43.07% savings in power

European market with 35% savings in power cost and the

American Market with only 10.77% savings in Power cost

B. For Food packaging/processing sector will be able to increase its

competitiveness by using solar/wind power. The sector could have
48.46% power savings.
C. With the expanding food packaging/processing, more people in the
Agricultural sector will expand and improve their businesses because
of the added value in the system.
D. The Competitiveness of the food packaging/processing and
agricultural sector will further be increased in the completion of
the Panay-Guimaras-Negros Bridge.

RECOMMENDATIONS

1. Negros Occidental to push for Solar power to be attached to BPO

enterprises in Silay or Talisay because these places are in the educated
population centers for easy recruitment of agents. Areas for BPO
needing solar power should not be Bacolod City or in areas with very
expensive land because the business would need more space for the
solar panels.
2. The Solar panels could cover the roof of the establishments and
surrounding areas( like parking area)

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3. To maximize the competitiveness , Negros Occ. will look for BPO
enterprises that cover the Australian/New Zealand and European
markets to have the maximum savings because of solar power.

4. It is recommended that the food packaging/processing enterprises use

solar and wind power. To Maximize cheaper power from Wind and Solar
, it is recommended also to locate packaging/processing enterprises in
areas not so near to Bacolod City because land is expensive there.
Preferred location should be near a major port and preferably near the
place where the bridge from Guimaras will connect with Negros. This
way, the finished products would have easy access to the national and
international markets. So the best place is somewhere in Pulupandan.

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5. To increase budget for training and awareness for the high value crops
that could be planted/grown/cultured and go thru canning/packaging/
processing/vacuum packing like coffee, cacao, bangus, pork etc. With
the added value given by these canning/packaging/processing/ vacuum
packing enterprises, more people to grow/culture more high value
products to give better incomes to the people in the agricultural and
packaging sector.

6. To maximize natural power for the same area of land, the solar and
wind turbine technologies could be combined in one location in remote
areas. Wind turbines are not suggested urban areas( withing city
limits). Depending on the outlook of the person, the wind turbines
might destroy the beauty of the landscape.

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7. To optimize the first cost( Purchase price), the solar power system will
involve only the solar panels. Battery/storage system will not be used
for storage because it will just double the cost.

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 APPENDIX

PHILIPPINE CHRISTIAN UNIVERSITY

Graduate School Studies

APPENDIX

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From Solar A1

Solar Panel Philippines –

Price of Installation and
Maintenance
Home » SEA/Others » Solar Panel Philippines – Price of Installation and Maintenance

• By Solar AI Technologies
• | November 17, 2022

The cost of solar has dropped by 89% in the last 10 years and they are only
going to continue to go down. But, what’s the actual price of installing solar
panels in the Philippines? Read here to find out more!

The price of solar panel installation in the Philippines has gone down over the
years and continues to decrease. While getting solar has become much more
affordable, several different factors still determine the eventual upfront price of a

19
solar panel installation. Initial costs and the type of solar panel used can vary
from roof to roof. Solar companies in the Philippines also have different prices
and packages for a full solar PV system installation.

Factors that affect the Solar Panel

Installation Price
In the Philippines, there are 2 types of solar panel systems: grid-tied and hybrid.
Grid-tied solar setups don’t come with a solar battery and your home will tap on
the grid for energy when your system is not generating electricity — at night or on
very cloudy days.

On the other hand, hybrid systems include a solar battery that stores excess
electricity generated by your system. Such systems are generally more
expensive as you’ll also have to factor in the cost of the solar battery. While grid-
tied systems make up the majority of existing solar panel setups in the
Philippines, especially in Cebu and Metro Manila, around 3 in 10 solar homes
have hybrid systems.

In this article, we’ll focus only on the cost of grid-tied solar panel installations
without solar batteries!

To start off, let’s address the most common factors that can affect your grid-tied
solar installation cost.

Size of the System

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The size of your solar panel system will be limited by the available installable
area on your roof. It also depends on how much solar electricity you want the
system to generate. To maximize your potential savings from your solar PV
system, we recommend calculating your average monthly electricity consumption
based on your utility bills from at least the past 3 months.

Since solar panels generate electricity during the day, one great way to get the
greatest cost savings out of your solar panel system would be to optimize its size
to meet your daytime energy needs.

Note: Many households are using more electricity than usual as most people are
working from home during the pandemic. So, it might also be worthwhile to
compare your electricity bills from before the pandemic to get a better sense of
your average energy consumption.

Bonus Tip: In 2019, an amendment to the Net Metering Program was introduced
by the Energy Regulatory Commission (ERC). You’ll now be able to enjoy lifeline

21
rate subsidies on your electricity bill if your home consumes less energy. With
this program in place, you can also consider equipping your roof with as many
solar panels as it can fit — even if you won’t consume all the solar electricity
generated during the day. Using energy generated by your solar panel setup
when there is sunlight will mean that your house will draw less energy from the
grid. This lowers your overall household energy consumption and will help you
get more energy subsidies and significantly reduce your monthly electric bill!

Roof Pitch, Type, and Material

Source: Inch Calculator

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Solar panels can be installed on almost all rooftops. Even so, your roof’s material
and type will determine the type of mounting gear needed for your installation
and affect solar panel placement. The different types of installations generally
equate to different costs. For reference, in the Philippines, the most popular
types of roofing are metal, tiled, and wood roofs.

Along with roof type, roofs without easy accessibility — with a ladder or via a
balcony — may also require additional scaffolding. All these considerations may
cause the price of your solar panel installation to fluctuate. Here’s a quick
preview of solar installations of the various types of roofs and which is the most
ideal for a solar setup.

Metal roofing (trapezoidal): Trapezoidal metal roofs are one of the best roof
types for solar installations. The installation process is minimally invasive. Small
mounting brackets are drilled onto the trapezoidal protrusion of your roof for the
solar modules to be mounted and clamped to. The spaces in between the
trapezoidal peaks also allow for rainwater to flow through easily preventing water
collection. This simple installation process ensures that prices are kept low. It
also allows you to easily remove your solar panels from your roof in the future if
you need to do so.

Metal roofing (corrugated): Solar installation on corrugated metal roofs is more

complicated. The process usually requires solar installers to build a mounting
rack to ensure that your solar panels are angled in the right direction for optimum
performance, properly ventilated, and stably secured. This procedure requires
more manpower and can generally cost you a little more than a metal trapezoidal
roof installation.

Tiled roofing: This type of solar installation is a 2-step process. Roof tiles are
usually first removed for the installation of a mounting frame before they are
returned to their original spots. Your solar panels are then attached to the
mounting frame. Drilling is generally required to make sure that the mounting
frame is well secured. More work is needed in a type of solar panel installation
and this can add to costs.

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Wooden roofing (truss): Installing solar on wood truss roofing is not
recommended. The brittle nature of this type of roofing makes it susceptible to
breakage under the weight of your solar setup. A solar installation on a wooden
roof can also be a fire hazard. That said, with added care on the part of your
solar installer, solar installations on wooden truss roofs can still be possible. Be
that as it may, the difficulty and extra precautions needed for this type of
installation will definitely result in much higher costs.

Note: Steep roofs will generally require a longer installation process. In these
special cases, installers have to be a lot more careful to ensure that your solar
panels are safely and securely fixed onto your rooftop. Extra manpower is also
often necessary for steep pitches and this can incur added labor costs and a
higher overall solar panel installation price.

Type of Solar Panel

When it comes to the price of solar modules, there are 2 important
considerations — the type of technology and brand. The 3 most common types
of solar panel technologies are Monocrystalline, Polycrystalline, and Thin
Film. Each type of solar panel has its advantages and limitations. That said,
monocrystalline solar panels are currently the most frequently selected for
residential solar installations because they are space-efficient and have the
highest efficiency.

In terms of panel brands, most solar installers in the Philippines will recommend
ones made by “Tier 1” solar panel manufacturers. This tiering system
was introduced by the Bloomberg New Energy Finance (BNEF) as a measure of
a manufacturer’s reliability and consistency. Among “Tier 1” solar panels, there
are also slight price differences. These depend on where the solar panels are
manufactured, their efficiency, and warranty durations. The most popular solar
panel brands in the Philippines are Trina, Hanhwa, JA Solar, and REC.

Overall Solar Panel Price Estimates

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To help you make a better solar decision, here’s an estimate of the standard grid-
tied system prices for landed homes in the Philippines. Don’t forget that
installation costs are also affected by the factors mentioned above.

So, what is the price of a grid-tied solar panel installation in the Philippines? The
price is generally determined by your house, roof, and solar system size. The
price of solar panels in the Philippines can range from as low as ₱150,000 to
higher than ₱1,000,000. This price range is valid for different regions in the
Philippines including Cebu and Metro Manila.

Small Affordable Houses (₱400,000≤): Most commonly, a solar PV system for

affordable houses includes 5 solar panels equating to a 2kWp system. The
installation area would be around 12m2. The estimated cost of your solar panel
system would range from ₱150,000 – ₱210,000 and will be sufficient for a small
home that consumes 224kWh of electricity per month.

Medium-cost Houses: For medium-cost houses, you’ll often install

approximately 10 solar panels — a 4kWp system — that’ll be enough to cover an
average monthly energy consumption of 448kWh. The system with an installation
area of 17m2 will add up to cost around ₱300,000 – ₱420,000.

25
Large High-cost Houses: Rooftop solar systems for high-cost houses vary
broadly. An average system would include around 38 solar panels (15kWp) with
an installation area of 86m2. This will cost anywhere from ₱900,000 – ₱1,260,000
because of the higher number of panels and larger installation area. For
extremely large houses, an installation can go up to 75 solar panels (30kWp) and
cost as high as ₱1,800,000.

NATIONAL GEOGRAPHICREFERENCE

Solar Energy
Though costly to implement, solar energy offers a clean, renewable source of
power.

1:30

WHAT IS SOLAR POWER?

3 MIN READ

Solar energy is the technology used to harness the sun's energy and
make it useable. As of 2011, the technology produced less than one
tenth of one percent of global energy demand.

26
Many are familiar with so-called photovoltaic cells, or solar panels,
found on things like spacecraft, rooftops, and handheld calculators. The
cells are made of semiconductor materials like those found in computer
chips. When sunlight hits the cells, it knocks electrons loose from their
atoms. As the electrons flow through the cell, they generate electricity.

On a much larger scale, solar-thermal power plants employ various

techniques to concentrate the sun's energy as a heat source. The heat is
then used to boil water to drive a steam turbine that generates
electricity in much the same fashion as coal and nuclear power plants,
supplying electricity for thousands of people.

The sun has produced energy for billions of years. Every hour the sun beams more energy onto Earth
than it needs to satisfy global energy needs for an entire year.

PHOTOGRAPH BY OTIS IMBODEN

How to Harness Solar Power

27
In one technique, long troughs of U-shaped mirrors focus sunlight on a
pipe of oil that runs through the middle. The hot oil then boils water for
electricity generation. Another technique uses moveable mirrors to
focus the sun's rays on a collector tower, where a receiver sits. Molten
salt flowing through the receiver is heated to run a generator.

Other solar technologies are passive. For example, big windows placed
on the sunny side of a building allow sunlight to heat-absorbent
materials on the floor and walls. These surfaces then release the heat at
night to keep the building warm. Similarly, absorbent plates on a roof
can heat liquid in tubes that supply a house with hot water.

Solar energy is lauded as an inexhaustible fuel source that is pollution-

and often noise-free. The technology is also versatile. For example, solar
cells generate energy for far-out places like satellites in Earth orbit and
cabins deep in the Rocky Mountains as easily as they can power
downtown buildings and futuristic cars.

Pitfalls
Solar energy doesn't work at night without a storage device such as a
battery, and cloudy weather can make the technology unreliable during
the day. Solar technologies are also very expensive and require a lot of
land area to collect the sun's energy at rates useful to lots of people.

Despite the drawbacks, solar energy use has surged at about 20 percent
a year over the past 15 years, thanks to rapidly falling prices and gains
in efficiency. Japan, Germany, and the United States are major markets
for solar cells. With tax incentives, and efficient coordination with
energy companies, solar electricity can often pay for itself in five to ten
years.

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