The Department of Energy (DOE) discussed major amendments to its Renewable Portfolio Standards guidelines for both on-grid and off-grid areas during nationwide public consultations held in Iloilo, Davao, and Clark last March 7, 15, and 23, respectively among Mandated Participants and stakeholders of the electric power industry.
The public consultations tackled Amendments to the Department Circular (DC) No. DC2017-12-0015, also known as “The Renewable Portfolio Standards (RPS) Rules for On-Grid Areas”; and the Revised Rules and Guidelines Governing the Operationalization of the Renewable Portfolio Standards for Off-Grid Areas Pursuant to Section 12 of the Renewable Energy Act of 2008.
“Like any other policies we issue, stakeholder consultations are necessary to assess the potential impact and scale of acceptance and support of the involved parties,” Renewable Energy Management Bureau Director Atty. Marissa Cerezo said. The DOE also ensures the inclusivity and balance of its impact in the country.
The major amendments made emphasized the least-cost sourcing of power supply such as the Competitive Selection Process (CSP) policy and regulations set by the DOE and the Energy Regulatory Commission (ERC). Consistent with this, the ERC shall issue a Regulatory Framework considering applicable cost recovery mechanisms that can be adopted to operationalize the RPS On-Grid Rules and the RE Market. Meanwhile, the Draft DC on the Revised RPS Off-Grid Rules sets out the Attainment of Optimal Supply Mix and Defining the Frameworks for RPS Compliance, among others.
The goal, as embodied in the National Renewable Energy Program 2020-2040, is to achieve at least 35% RE share in the country’s generation mix by 2030, and more than 50% by 2040, as prescribed in the National Renewable Energy Program (NREP) 2020-2040.
To reach targets, the DOE continues to support the implementation of various RE mechanisms, such as the RPS Rules for both On-Grid and Off-Grid areas. These are market-based policies that require electric power industry participants to source a portion of energy supply from eligible RE facilities – not only those load-serving entities in on-grid areas but also the generation sector in off-grid and missionary areas.
Participants in the public consultations included On-Grid and Off-Grid Distribution Utilities (DU), Retail Electricity Suppliers (RES), Generation Companies serving directly-connected customers (GENCO-DCC), National Power Corporation – small power utilities groups (NPC SPUG), manufacturers and sellers of traditional and new energy products (NPP), renewable energy associations, and other DOE attached agencies.
More information can be found on the Department of Energy Philippines website: https://www.doe.gov.ph/announcements/invitation-public-consultations-pubcon-various-draft-department-circulars-dc?withshield=3
