ERC issues DER guideline

MANILA, Philippines — The Energy Regulatory Commission (ERC) has issued the guidelines for the distributed energy resources (DER) as part of efforts to democratize the grid.

The ERC said the approved rules aim to encourage development and utilization of DER, promote energy quality, reliability, security, affordability and sustainability.

This is consistent with the policy of the state to accelerate the development of renewable energy (RE) toward reducing the country’s dependence on fossil fuels and minimizing the exposure to price fluctuations in the international markets, it said.

DERs are smaller power sources that could be aggregated to provide power necessary to meet regular demand, according to the ERC.

“The DER rules democratize the power grid. This will enable consumers to supplement the power supply coming from large utilities and power producers,” ERC chairperson Monalisa Dimalanta said.

“Its significance cannot be further emphasized as we seek ways to cushion the impact of rising fuel prices that concomitantly impact upon electricity rates,” she said.

The DER rules include guidelines, interconnection standards, certificate of compliance requirements, pricing methodologies, commercial arrangements governing the sale of energy produced and operations of the DER and payment of subsidies, among others.

Under the adopted DER rules, on-grid or off-grid DER end-users, utilizing renewable energy, with a maximum nameplate capacity of one megawatt (MW) can export a maximum of 30 percent of its excess capacity to the distribution system and be compensated for it.

The ERC said the rules likewise provide for a carve-out provision that would enable distribution utilities to reduce its existing contracted capacity under ERC-approved power supply agreements.

This will ensure the avoidance of stranded contracted capacities, while at the same time empowering individuals to participate in the energy network, it said.