November 19, 2018 | 10:17 pm
THE Energy Regulatory Commission
(ERC) said the removal of the 100-kilowatt (kW) cap that solar rooftop energy
generators are allowed to inject into the power grid could have an adverse
effect on transmission lines, which may not be able to accommodate injections
of power beyond that limit.
An ERC official made the statement
in view of a Senate bill that allows bigger establishments to export power to
the grid to harness their energy output.
Sharon O. Montañer, who heads ERC’s
financial and administrative service, said in an interview that there is no
existing study that looked into the feasibility of the system taking more than
what was allowed under existing rules.
She said the passage of the bill
into law would trigger a new study on the grid’s ability to absorb new output.
Senate Bill 1719 aims to further
promote the adoption of rooftop solar technology among residential, commercial,
industrial and government end-users. It seeks to amend Republic Act. No. 9513,
or the Renewable Energy Act of 2008.
During a hearing on the proposed
bill on Monday, Ms. Montañer said that as stated in the exploratory note of the
bill, removing the 100-kW cap on distributed generation aims to allow large
electricity consumers to avail of the net metering program under RA 9513.
“With the proposed incentives under
the bill, this is expected to result to a drastic increase in solar energy
being exported to the grid,” she said.
Under net metering, a solar rooftop
user has a two-way connection to the grid and is only charged or credited, as
the case may be, the difference between the energy it imports and what it
exports.
Ms. Montañer said it was uncertain
the drastic increase in renewable energy injected could be handled by the grid,
particularly as solar power is intermittent in nature.
“A less sophisticated grid and
distributive system such as in the Philippines, may be less effective in
ensuring grid integrity, and consequently reliability and quality of power,”
she said.
“A thorough grid, system, and
distribution impact study would help determine how much in exported capacities
the grid may accept without unduly compromising power supply stability,” she added.
She said the electricity grid was
originally constructed to flow power from the high voltage part of the network
to the low voltage part.
Capital expenditures cover the
installation of devices to ensure that the frequencies of power being moved
along the grid system and into households and establishments are within
tolerable limits, she said.
“All these costs are passed on to
consumers” she said.
Ms. Montañer said the wide
application of net metering and the resulting increase in power capacities
being exported to the grid from the low voltage part of the network would
require additional capital expenditure on network upgrades.
“As such, electric users with solar
panels are actually increasing the capital costs of the network,” she said.
Based on ERC computations, the
exporter of solar power is paid only the “blended” generation cost, net of
transmission, distribution, system loss and other related charges and subsidies
of P5.34 per kWh.
Under the proposed amendment, the
solar power exporter will instead be paid P11.46, which is the retail rate. The
rate is even higher than the last feed-in tariff rate for solar of P8.69 per
kWh, which the ERC said had outlived its purpose.
Victorio Mario A. Dimagiba,
president of Laban Konsyumer Inc., said his concern is how to the proposed
legislation will pass on the costs to consumers.
“Somewhere along the line somebody
will pay, but will the DU (distribution utility) absorb the cost?” he said
during the hearing.
“This bill could be another measure
to trigger inflation in the cost of electricity,” he said. “We should look for
technology, projects, programs that should lower [the cost of] electricity, not
the other way around,” he said. — Victor V. Saulon
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