Published
By Myrna M. Velasco
The Department of
Energy (DOE) admitted that the draft “Green Energy Option” rules for the
renewable energy (RE) sector had still been “anemic,” hence, further
improvements will have to be worked on by the National Renewable Energy Board.
According to an energy
official, the set of rules “would still be up for further review and
adjustments,” so they can be more valuable guiding path on the offer of “green
energy” or RE capacities to prospective customers.
Under the current draft
rules, the anticipated “Green Energy Option Program” (GEOP) principally
underpinned by RE technologies will be taking strides on “tricky grounds”
because of the demand aggregation set forth in the proposed policy.
Filipino consumers
opting for “clean energy choice” will also need to go through the hassle of
registration with their servicing distribution utilities (DUs), electric
cooperatives (ECs) and/or suppliers.
It is essentially a
“more complicated terrain” that the draft rules of the Philippines’ green
energy option would be wading through, compared to the simpler and
straightforward contracting that other markets had adhered to.
The set of rules is of
four-page document, perceived by the industry to be more of lethargic form and
howls for “the rest is still unwritten” because it DOEs not delve much on the
commercial terms or market peculiarities that could have come as easy reference
to prospective customers.
In the same draft GEOP
rules, it was stipulated that “all end-users or customers (according to class
regardless of demand size) may register with their DUs, electric cooperatives
or suppliers their option to source RE power.”
The more ticklish
proposition, so far, is under Section 13 stipulating that “DUs and ECs shall
aggregate the demand for each RE, and contract directly with the RE developers
for corresponding requirements net of the customers who have opted to contract
directly with RE developer or supplier.”
With the nature of
service provision of DUs though wherein their supply portfolio would often be
from mixed sources or blended, it may not thrive as a “welcome proposition” for
consumers to opt for RE or green energy because one cannot really be sure which
energy source the capacity being wheeled into their homes would be coming from.
The propounded rules
further set out that “a DU or EC shall not be required to supply an end-user
that has exercised the option where such supply will result in increase in the
blended generation which shall be passed through to other end-users of the DU.”
On the billing,
servicing power utilities are mandated to “reflect in the monthly electric
bills how much monthly energy consumption and generation charge is provided by
RE facilities.”
The rules also require
that DUs or suppliers would comply to reportorial requirements and that the
Department of Energy (DOE) shall be establishing a database for such.
As specified, “all DUs,
ECs and suppliers shall submit information reflecting purchases broken down by
generating facility, power source and/or through the WESM (Wholesale
Electricity Spot Market) covering the period that will be defined by the DOE.”
In addition, all
generation companies are mandated to “submit data on sales to directly
connected customers for the period to be identified by the DOE.”
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