DOE to issue new rules on small RE projects

MANILA, Philippines — The Department of Energy (DOE) is coming out with new rules to speed up the deployment of small-scale renewable energy (RE) projects across off-grid areas across the country.

The DOE has issued a draft circular, laying down new and separate guidelines toward accelerated deployment of distributed, small-scale RE facilities to achieve affordable, stable and sufficient energy supply nationwide.

The new guidelines support the achievement of the objectives of the RE Act of 2008 and to meet the country’s goal of total electrification.

The agency is seeking industry stakeholders’ input to finalize the guidelines.

The DOE said RE resources are scalable, diverse and widely-distributed, which can provide sustainable energy solutions to electricity end-users, especially in remote, isolated, and off-grid areas in the country.

The proposed circular also gives end-users the option to develop and produce their electricity requirements as part of demand-side management through qualified and eligible RE developer.

This is in time for the promulgation of the various RE market development support policies such as the Renewable Portfolio Standards (RPS) Rules for both on-grid and off-grid areas, Green Energy Option Program (GEOP) and Net Metering for RE.

RPS requires distribution utilities to source a portion of their power supply from eligible renewable energy producers, while GEOP empowers end-users to choose renewable energy resources for their energy requirements.

Because of these policies, the DOE expects that Distributed Energy Resources (DER) and/or Distributed Energy Generation (DG) technologies would expand rapidly in the country because it can complement power supply in the main grid or provide the most cost-effective energy option for remote or isolated or off- grid and missionary areas.

Moreover, the agency said the proposed guidelines would streamline the permits and licensing requirements for energy projects, and implement the ease of doing business for small-grid and distributed RE projects.

The DOE said the end view is to reduce costs that are passed on to or paid by the electricity end-users.

Under the draft guidelines, RE developers are required to apply and register their distributed and small-grid RE facilities of not more than one megawatt in capacity located in on-grid and off-grid areas.

Applications will be evaluated by the Renewable Energy Management Bureau (REMB) of the DOE.

If deemed legally, technically and financially qualified, the project will be issued a certificate of registration (COR) which is valid of 25 years.

The COR grants the small-grid RE developer an exclusive right to explore, develop and utilize the RE resource over its registered area, as well as avail of the fiscal and non-fiscal incentives and privileges under the RE Act.

The project will then be monitored by DOE’s REMB and Electric Power Industry Management Bureau (EPIMB).