MANILA, Philippines — Energy Secretary Alfonso Cusi has signed the green energy tariff program policy to boost renewable energy (RE) development in the country.
In a webinar Friday, Department of Energy (DOE) Assistant Secretary Redentor Delola said the policy was signed last July 14 but has yet to be published.
“We’re already processing the publication. Basically, the policy just lays down the framework for the auction,” he said.
The green energy tariff will “provide price signals on the commercial value of electricity generated from RE facilities,” which will be the basis of a benchmark rate for RE in the country.
Meanwhile, the green energy auction will facilitate supply contracting by qualified suppliers with eligible customers under a competitive process.
The policy will set the framework to facilitate the compliance of distribution utilities, retail electricity suppliers, RE suppliers, and end users with the Renewable Portfolio Standards (RPS).
RPS mandates power industry players to produce and source a certain percentage of electricity from RE sources such as biomass, waste-to-energy technology, wind energy, solar energy, run-of-river hydroelectric power systems, impounding hydroelectric power systems, ocean energy, and geothermal energy.
Once the policy is published, the DOE will work with stakeholders—particularly with distribution utilities (DUs)—to draft the rules.
“The rules that will govern the auction will have to be drafted and that is something that we will work on with DUs especially because the DUs are the mandated participants,” Delola said.
In the same webinar, National Renewable Energy Board (NREB) chairperson Monalisa Dimalanta said DUs wanted greater involvement in crafting the rules of the auction itself since they are the main participants in the policy.
Delola said the country still has time to polish the rules since most DUs are still compliant with the RPS policy.
“We are all still compliant to the RPS rules, maybe until 2022, 2023 but beyond that, there will already be a requirement from everybody,” he said.
Last year, Cusi bared plans of bidding out 2,000 megawatts (MW) of RE capacity to encourage developers to put up RE projects and fast-track the development of cleaner power generation.
Cusi had directed NREB, the advisory body tasked with the effective implementation of RE projects in the country, to review and make a recommendation on the concept of giving an allocation of 2,000 MW and green energy rate for RE development.
Assisted by NREB, the DOE is updating the country’s RE targets as capacity fell short from goals set 10 years after the Renewable Energy Act of 2008 was enacted.
Under the National Renewable Energy Program (NREP) 2011-2030, the DOE is targeting to triple the existing renewable capacity of 5,438 MW in 2010 to 15,304 MW by 2030.