By Lenie Lectura - July 26, 2019
The Department of Energy (DOE) has
vowed to fast-track the implementation of two key renewable-energy (RE)
policies following President Duterte’s remarks that the country needs to
develop more RE sources, and reduce dependence on traditional energy sources,
such as coal.
“The DOE is encouraged by the
President’s comments. Indeed, his leadership will be pivotal for the DOE to
implement policies and regulations that ensure the affordability, reliability,
security and sustainability of energy in the Philippines for generations to
come,” said Energy Secretary Alfonso G. Cusi.
These two policies are the Renewable
Portfolio Standards (RPS) and the Green Energy Option (GEO).
RPS mandates distribution utilities
to source a minimum portion of energy from renewable sources, thus guaranteeing
a market for RE generators. This minimum portion will be increased on a yearly
basis.
GEO, on the other hand, will empower
consumers to demand that their energy is sourced from renewable resources.
Additionally, the DOE has initiated
a proposal to establish a Green Energy Rate for 2,000 megawatts of new RE
generation capacity. The National Renewable Energy Board is expected to
submit its recommendations in the months ahead.
Cusi said the Green Energy Rate will
not be a feed-in-tariff program and will not be subsidizing the RE generation
sector, thus, the need to be competitive with current market rates. Instead,
the Green Energy Rate will support the RE generators with securing power supply
contracts and selling their energy by setting a baseline price.
“Indeed, it is important that we
continue to develop renewable and indigenous energy sources in order to ensure
long-term energy security. However, energy security also requires
diversification beyond RE,” he added.
“LNG [liquefied natural gas] and
coal-fired power plants are the bridging-fuel we will need as we transition
towards more RE. Until then, conventional energy will continue to play a role
in energy diversification and security,” said Cusi.
The energy and environmental think
tank Center for Energy, Ecology and Development (CEED) earlier urged the
Duterte administration to issue an executive order that will focus on the
development of more RE sources.
“We welcome the positive remarks
uttered by the President during his State of the Nation Address, responding to
the clamor of the public against dirty, deadly, and costly energy from coal and
fossil fuels,” said CEED Executive Director Gerry Arances. “His statements are
significant given that existing energy and power policies largely favor coal.”
Arances said coal’s 51-percent share
in the power mix will continue to grow given the 30 coal-fired power plants
still in the pipeline. The DOE also projects that coal will only increase for
at least two decades more, according to the Philippine Energy Plan.
“We urge the President to formalize
in an executive order the marching orders he gave during his speech to provide
clear policy directions to the DOE and the Department of Environment and
Natural Resources,” said Arances.
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