Tripartite pact hastens city’s shift to clean energy

By Rjay Zuriaga Castor

The Iloilo City government is at the crossroads of the clean energy transition as it forged an agreement with the Energy Regulatory Commission (ERC) and MORE Electric and Power Corporation (MORE POWER) to boost renewable energy technologies and cushion the impact of higher electricity rates in the area.

The tripartite agreement aims to promote the use of Net-Metering and Distributed Energy Resources (DER) to reduce greenhouse gas emissions, generate economic development, and at the same time, manage electricity costs.

According to ERC, a Net-Metering program turns regular consumers into “prosumers” (producer-consumer) by installing a solar facility on its premises and allowing them to sell excess electricity. Meanwhile, DERs enable consumers to supplement the power supply coming from large utilities and power producers.

“With this partnership, we aim to promote green practices, aligning with the national government’s targets. In Iloilo, our efforts include solar panels at the national high school, city hall, dialysis centers, and eye care facilities,” Mayor Jerry P. Treñas said in a report from the ERC’s website.

Iloilo City is the second pilot local government unit of ERC for the Net-Metering and DER program. The city government of Pasig entered into the same agreement in July this year.

“We hope that other LGUs are similarly inspired to partner with national agencies to bring solutions closer to our people,” ERC Chairperson and CEO Monalisa C. Dimalanta said.

As one of its obligations in the agreement, MORE Power is required to establish a one-stop shop for net-metering applications.

“Our collaboration with the city has been active for the past three years, and we warmly welcome the involvement of ERC. Being the first in Visayas to enter into this agreement showcases our strong support for the government,” MORE Electric and Power Corporation CEO and president Roel Castro said.

The ERC said it will assist in streamlining documentary submissions, as well as the processes for installation, payment, and permitting of the Net-Metering and DER.

The Net-Metering Program is a non-fiscal incentive mandated by the Renewable Energy Act. The ERC implemented the Program in 2013 and issued amendments to the rules enabling the program in 2019.

To “democratize the power grid,” ERC in 2022 approved the DER rules which include the guidelines, interconnection standards, Certificate of Compliance (COC) requirements, and pricing methodologies, among others.

As of June 30, 2023, the ERC has already granted Certificates of Compliance to 72 eligible end-users in Iloilo City, totaling 985.37 kilowatt-peak capacity under the Net-Metering program.