July 22, 2018 | 9:56 pm
THE Department of Energy (DoE) is
soliciting comment on a draft circular that will identify “competitive
renewable energy zones” (CREZ) to help it direct the country’s power
transmission development to areas where potential indigenous resources are
located.
In the draft circular, the DoE will
define a CREZ process in which it will identify the renewable energy (RE) zones
to help in overcoming development obstacles such as transmission constraints
and regulatory barriers to financial investment by the private sector.
“[I]n planning for new transmission
infrastructure and/or upgrades to existing transmission infrastructure, the
[DoE] deems it necessary to ensure the cost-effective delivery of electricity
generated in regions with abundant RE resources in order to attain sustainable,
stable, secure, sufficient, accessible, and reasonably-priced electricity
supply and services,” the department said in the proposed circular.
The DoE said the ideal candidate
areas for CREZ are “geographic areas characterized by high-quality, low-cost RE
potential in addition to high levels of private-sector developer interest.”
In the selection process, the
department will also identify a set of transmission or upgrade scenarios that
will enhance the delivery of energy from the candidate RE zones.
The process will include an analysis
of the “economic, operational, environmental, and other costs and benefits
associated with the required transmission enhancement scenarios.”
It will also specify the
cost-effective transmission line enhancements proposed to be included in the
transmission development plan, as reviewed and approved by the DoE.
The DoE said the focus of the CREZ
analysis is power interconnections in Luzon, Visayas and Mindanao.
Under the circular, the DoE will
create a technical advisory committee, which is chaired by the DoE secretary or
a designated representative. Its members include directors of some of the
department’s bureaus, along with the heads of the National Renewable Energy
Board, National Transmission Corp., National Electrification Administration,
and National Grid Corp. of the Philippines. — Victor V. Saulon
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