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On-grid photovoltaic The GEF has supported the market transfer and installation of grid-connected PV systems in 21 projects. An estimated PV peak power of 40 MW has been installed, mostly in combination with small wind and hydro, and often to support minigrids. The GEF funded these projects with US$160 million, cofinanced with almost US$1.6 billion. CASE STUDY: PHILIPPINES—ON-GRID PHOTOVOLTAIC effectively providing reliable generating capacity. The PV plant helped postpone the need for additional substation installations in the distribution system for up to three years, reducing the need for CEPALCO to purchase additional thermal-plant-based power and reducing its GHG emissions by of 1,200 tonnes per year. More importantly, the plant provides the first full-scale demonstration of the environmental and, ultimately, economic benefits of the conjunctive use of hydro- and PV-based power—and represents the first significant use of grid-connected PV in a developing country. This project marks significant progress toward solving the storage issue faced by many renewable energy technologies. If conjunctive use allows current hydro facilities to be used for storage, many renewables, including PV and wind, can be viewed in combination as a “firm hybrid”—a completely renewable source of power. CEPALCO is considering replicating this plant with a 30-hectare solar park that would be commissioned by 2012. Further information is available at: http://www.cepalco.com.ph/solar.php *The GEF fund is a loan that turns into a grant after CEPALCO operates the plant successfully for five years. Project Title: CEPALCO Distributed Generation PV Power Plant GEF Agency: Cofinancing: OBJECTIVE World Bank/IFC US$3.5 million GEF: US$4 million Dates of Implementation: 2003–04 (*2009) The overall objectives of the CEPALCO (Cagayan de Oro Electric Power & Light Company) project are to act as a demonstration plant for grid-connected applications of PV power plants in the developing world and to demonstrate the principle of conjunctive PV-hydro peak power generation. OUTCOMES A 1 MW (6,500 solar panels on 2 hectares of land) PV power plant was built and integrated into the 80-MW distribution network of CEPALCO, a private utility on the Philippine island of Mindanao. The PV system operates in conjunction with a 7 MW hydroelectric plant with dynamic load control, enabling the joint PV/hydro resource to reduce distribution-level and system-level demand, CEPALCO 1 MW on-grid PV in Philippines 18 THE GLOBAL ENVIRONMENT FACILITYPDF Image | INVESTING IN RENEWABLE ENERGY: THE GEF EXPERIENCE
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