July 15, 2019 | 12:04 am
THE Department
of Energy (DoE) is asking interested parties to comment on a draft circular
that provides a national policy framework for smart grids and a “roadmap” for
distribution utilities.
The move comes as
distribution utilities have come up with their own initiatives to introduce
smart grids that use innovative technologies to modernize the electric grid
infrastructure.
The DoE said it saw a
need to transform the Philippine power sector into “a secure, stable, flexible,
sustainable, digitally enabled and interoperable system that provides reliable,
efficient, and quality energy towards grid modernization and consumer
empowerment.”
Under the proposed
circular, the department has adopted several criteria for transitioning the
power system into a smart grid by 2040: safety/reliability; efficiency;
flexibility/sustainability; resiliency; and consumer empowerment.
The DoE said it hopes
the Philippines will reach a level of smart grid development capable of
“self-healing” and responding to recent policy issuances on Retail Competition
and Open Access (RCOA); Renewable Portfolio Standards (RPS); Green Energy
Option Program (GEOP); and Net Metering.
The department defines
a smart grid as modernized electrical grids that use innovative technology with
two-way and/or multi-way communication technologies, real-time monitoring and
control systems.
The proposed policy
framework anticipates the emergence of smart homes or buildings that are
capable of monitoring and control of electricity and energy usage within their
premises.
The grid reform plans
also come amid the introduction of smart appliances and devices that allow
real-time, automated, interactive technologies.
The DoE also expects
the greater use of smart meters, or electronic real-time energy-measuring
devices that are capable of remote connect/disconnect switching with two-way
communication between the meter and the power utility.
Smart meters record
consumption of electric energy in intervals of an hour or less, and communicate
the information back to the power utility for monitoring and billing.
The proposed circular
applies primarily to distribution utilities, including grid-connected,
micro-grids and off-grid systems.
The DoE said if needed,
it would coordinate with other government agencies to establish new incentive
mechanisms for smart grid development.
It is enjoining the
Energy Regulatory Commission (ERC) to promulgate, within six months from the
effectivity of the circular, guidelines and to ensure proper and timely
implementation of the policies to be set forth.
The proposal instructs
the National Electrification Administration to provide concessional loans to
smart grid projects of electric cooperatives. — Victor V. Saulon
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