Integration of Productive Uses of Renewable Energy for Sustainable and Inclusive Energization in Mindanao (l-PURE Mindanao)

CTR Reference No.

CTR 2021/417 116

Title of the Project

“Integration of Productive Uses of Renewable Energy for Sustainable and Inclusive Energization in Mindanao (l-PURE Mindanao)”

Implementing Organisations

The key implementing partners are National Electrification Administration (NEA), lead applicant, Mindanao Development Authority (MinDA), co-applicant, electric cooperatives which includes COTELCO, SOCOTECO II, SUKELCO, TAWELCO, as affiliates/or associates and local government units (LGUs), community-based organizations (CBOs) and academes in North Cotabato, Saranggani, Sultan Kudarat, Lanao Del Sur and Tawi-Tawi as associates.

All the key implementing partners are frontrunners in implementing similar projects and activities in the target areas and beneficiaries.

NEA and MinDA primarily are government agencies mandated to implemented programs, projects and activities related to electrification and economic and social activities that will uplift the conditions of HHs in Mindanao.

Electric Cooperatives and Affiliates/or Associates on its work packages:

  • Cotabato Electric Cooperative, Inc. (COTELCO)
    • Work Package 1.1 PURE Arakan – Corn Sheller and Miller
    • Work Package 1.5 PURE Tulunan – Rice Miller
    • Work Package 1.6 PURE Kidapawan – Corn Sheller and Miller
    • Work Package 2.1 PV Mainstreaming COTELCO

 

  • South Cotabato II Electric Cooperative, Inc. (SOCOTECO II)
    • Work Package 1.2 PURE Glan – Ice Making Facility
    • Work Package 2.2 PV Mainstreaming SOCOTECO II

 

  • Sultan Kudarat Electric Cooperative, Inc. (SUKELCO)
    • Work Package 1.3 PURE Bagumbayan – Corn Sheller and Miller
    • Work Package 1.8 PURE Sen. Ninoy Aquino – Water System
    • Work Package 1.9 PURE Kalamansig – Coffee Dryer and Miller
    • Work Package 1.10 PURE Lebak – Water System

 

  • MinDA with LGU and CBO
    • Work Package 1.4 PURE Picong – Water System

 

  • Mindanao State University Tawi-Tawi (MSU Tawi-Tawi)
    • Work Package 1.7 PURE Tawi-Tawi – Seaweeds Dryer

 

  • Tawi-Tawi Electric Cooperative, Inc. (TAWELCO)
    • Work Package 2.3 TAWELCO Barangay Line Enhancement and Household Connections

 

 

Project Location

Mindanao, Philippines

Operational Duration

April 2021 to December 2022 (20 months)

Allocated Budget

EUR 4,499,999.36

Objectives

 

Overall Objectives

To help bring about improved economic and social conditions to families in marginalized and disadvantaged communities in Mindanao using renewable energy solutions for their livelihood activities and household energization.

Specific Objectives

  1. Increase the production and income of farmers and employment generation potential through the introduction of productive use of renewable energy (PURE) in the Agri fishery value chain of the following areas:
    • Arakan, North Cotabato
    • Glan, Saranggani
    • Bagumbayan, Sultan Kudarat
    • Picong, Lanao del Sur
    • Tulunan, North Cotabato
    • Kidapawan City, North Cotabato
    • Sitangkai and Sibutu, Tawi-Tawi
    • Sen. Ninoy Aquino, Sultan Kudarat
    • Kalamansig, Sultan Kudarat and
    • Lebak, Sultan Kudarat

 

  1. Increase the availability of electricity service in the franchise area of COTELCO and SOCOTECO II through the provision of 3,077 solar home system and demonstrate that it is a viable least-cost electrification option for off-grid and widely dispersed households.

 

  1. Increase and extend the availability of electricity service in selected seaweed farming communities in Tawi-Tawi in the municipalities of Sitangkai and Sibutu, through line extension from the RETS solar-hybridization Project to these areas.

 

  1. Mainstream Productive Uses of Renewable Energy (PURE) through knowledge management initiatives, policy formulation and lECs.

 

 

  1. Increase the knowledge and capacity of ECs and LGUs in the development and operation of Renewable Energy Technologies.

 

  1. Demonstrate good practices in mainstreaming gender aspects in renewable energy projects.

Main Target Groups

  • Off-grid, poor and under-served communities and houses in North Cotabato, Saranggani, Sultan Kudarat, Lanao del Sur and Tawi-Tawi
  • Concerned Electric Cooperatives (ECs)
  • Concerned Local Government Units (LGUs)
  • Concerned Community-Based Organizations (CBOs) and informal groups including women groups.

Main Activities

  • Component 1.0 10 post-harvest Agri-fishery processing facilities using renewable energy technologies installed and operated.

 

  • Component 2.1 1500 solar homes systems installed and operated in the franchise areas of COTELCO.
  • Component 2.2 1577 solar homes systems installed and operated in the franchise areas of SOCOTECO II.
  • Component 2.3 Construction of 9.93km 3-phase, 0.80km 1-phase Distribution Lines connecting selected seaweed farming communities in Tawi- Tawi- in the municipalities of Sitangkai and Sibutu to the RETS solar-hybridization project. Additional 2,184 households electrified.

 

  • Component 3.1 Project Management and IEC Activities.
  • Component 3.2 Capacity Buildings and Trainings.

 

Sustainability of the Project

 

Financial Sustainability. Financing of follow-up activities and O&M costs will be covered by revenues from the net profit (sales minus operational expenses) from the operation of the PURE facilities and could be allocated as follows:

  • 20% - repair and maintenance fund to be remitted to the Electric Cooperative every end of the month
  • 10% - cost recovery/savings (to be used for replacement of parts and components) to be remitted to Electric Cooperative every end of the month
  • 70% - CBO livelihood fund

The above allocation may change depending on the MOU to be signed between the ECs, the LGUs, and the CBOs during the project implementation.

To ensure a regular revenue stream, a holistic approach will be taken integrating a sound technical design, stronger support for local business development and productive use of electricity and customer relationship management to improve consumers’ ability and willingness to pay.

 

Institutional Sustainability. The ECs and the CBOs are the key players in the operation maintenance and the billing-collection in a sustainable way. The Project will involve an intensified capacity development and training of both the ECs and the CBOs enabling them to operate and manage the PURE system sustainably. Ownership by the CBOS and support from organizations committed to long term development in the remote areas of the Philippines ensure institutional sustainability of the Project. MinDA, a co-applicant in the Project, will continually oversee the project and ensures that the Project is part of their agenda of improving energy access in Mindanao.

As chair of the Mindanao Power Monitoring Committee (MPMC), MinDA is tasked to coordinate efforts to improve the power situation in Mindanao. MPMC is co-chaired by DOE and with representatives from NEA, NPC, ERC. This implementation exercise will also establish and strengthen institutions for rural energy development in Mindanao. Linkages among MinDA, LGU’s, sectoral agencies and academic institutions will be strengthened in implementing rural energy projects.

The academic institutions, particularly the state colleges and universities, are envisaged to take a central role in increasing awareness in the community through introduction in the curriculum, among others, the basic information of renewable energy and its potent role in uplifting the economic conditions as well as in taking care of the environment.

Policy Level Sustainability. The proposed Project will raise RE awareness of the local partners including the policy making sector, MinDA and the LGU. It will also induce behavioural changes on the adoption of RE technologies specifically for off-grid applications among the Project partners prompting them to collaborate, mobilise and direct resources to off-grid RE electrification options. The proposed Project will document its experiences in undertaking the activities and will be the source of information to produce policy studies that may lead to development of guidelines in implementing renewable energy-based off-grid systems and appropriate business models, among others. MinDA intends to prepare a policy paper on the mainstreaming of PURE under this proposed Project and will be lobbied to policy makers.

Conferences on Renewable Energy and Appropriate Technology (CREATE) will be organized in partnership with the Academe and different sectors. RE Investment Conference and policy forums will likewise be facilitated by the Project thru MinDA.

 

Environmental Sustainability. The proposed Project will have a positive contribution to climate change mitigation and adaptation. The use of RE and energy-efficient technologies in producing energy has been proven to drive down carbon emissions. Using the standard factor of 7.03 x 10- 4MT C02/kWh set by the US Environmental Protection Agency, the estimated carbon footprint offset by the proposed Project is 40,390.08 MT C02 per year.

 

Target SDGs

The I-PURE Mindanao Project has been aligned with the target Sustainable Development Goals (SGDs), a blueprint to achieve a better and more sustainable future for all people and the world by 2030:

  • 1. No Poverty
  • 2. Zero Hunger
  • 3. Good Health and Well-being
  • 4. Quality Education
  • 5. Gender Equality
  • 6. Clean Water and Sanitation
  • 7. Affordable and Clean Energy
  • 8. Decent Work and Economic Growth
  • 9. Industry, Innovation, and Infrastructure
  • 10. Reduced Inequality
  • 11. Sustainable Cities and Communities
  • 12. Responsible Consumption and Production
  • 13. Climate Action
  • 14. Life Below Water
  • 15. Life On Land
  • 16. Peace, Justice, and Strong Institutions
  • 17. Partnerships for the Goals

Link to more information on the project