Monday, July 24, 2017

Rules for sourcing renewable power expected in July -- NREB



Posted on June 13, 2017

THE National Renewable Energy Board (NREB) aims next month to endorse to the Department of Energy (DoE) the long-delayed rules on renewable portfolio standards (RPS), which will require distribution utilities and other industry participants to source a portion of their power supply from eligible renewable energy resources.
“For our target, by end of June we will finish one public consultation and by July we’ll endorse it to the secretary,” said NREB Chairman Jose M. Layug, Jr. in a recent interview.

Aside from the standards, he said the board is also scheduled to endorse to DoE Secretary Alfonso G. Cusi rules on “green energy options.”

“It basically grants the captive customer the option to tell his DU (distribution utility] that he wants to buy power from RE (renewable energy),” he said.

The standards are called for by Republic Act 9513 or the Renewable Energy Act of 2008, which provides a policy for the state to increase the use of renewables. Its implementing rules and regulations placed an obligation on electric power industry participants such as generators, distribution utilities or suppliers to source or produce a specified fraction of their electricity from eligible renewable energy resources.

Mario C. Marasigan, who heads the Department of Energy’s (DoE) renewable energy management bureau, said the public consultation for the renewables rules should be within the week. But he said rules on the green energy option would most likely come out ahead.

“The green energy option is on the final stage of drafting the right regulation,” he said, adding that the draft is set for submission to the DoE.

Mr. Marasigan, who also sits on the NREB board, said there will be limited changes to the renewable standards rules posted by the DoE under the previous administration.

“NREB members have yet to decide whether they will adopt the same numbers that were presented before or not,” he said.

He said the changes were largely because the Philippine Energy Plan, which was the basis of the draft RPS, covered the years 2016 to 2030. He said the DoE is now writing a plan spanning until 2040.

“If we adopt the same 2030 (plan), then maybe it’s almost the same numbers (or) just very minimal change,” he said.

Based on the previous draft rules, nine renewable energy technologies were listed which mandated participants can choose from: biomass, waste-to-energy, wind, solar, run-of-river hydropower, impounding hydropower, ocean energy, hybrid systems and geothermal. The department qualified that it may later identify other technologies for inclusion upon the recommendation of the NREB.

Aside from distribution utilities and retail electricity suppliers, the DoE also included among the “mandated participants” other entities: suppliers of last resort or those serving customers whose chosen suppliers cease to deliver; generating companies, but up to the extent of their actual supply to their directly connected customers; distributors within economic zones; and other entities as recommended by NREB.

Based on a previous sample computation, to be on track for a 35% share of renewable energy in the national energy mix by 2030, its share in 2016 should be 27.3% given an estimated electricity sales of 69,848 gigawatts (GWh).

By capacity, the percentage share for 2016 amounts to 19,035 GWh, which is derived by adding the previous year’s estimated RPS to an annual minimum incremental figure.

This year’s electricity sales are estimated at 73,340 GWh, which translates to a 28% share for renewable energy or 20,537 GWh.

By 2030, the DoE estimates electricity sales to hit 138,294 GWh, of which 48,467 GWh or 35% should come from renewable energy sources. -- Victor V. Saulon

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