September 30, 2018 | 8:05 pm
THE Department of Energy (DoE) has
issued a circular that seeks to identify what it calls competitive renewable
energy zones (CREZ), which will become the guide in directing the country’s
power transmission development to reach areas with potential indigenous energy
resources.
Published during the weekend,
department circular DC2018-09-0027 seeks to identify the renewable energy zones
to help in overcoming development obstacles, including constraints on
transmission as well as regulatory barriers that hinder the entry of private
sector investment.
The DoE first presented the circular
to industry participants in July for their comment. It is in part among the
provisions sought by Republic Act 9136 or the Electric Power Industry Reform
Act of 2001 (EPIRA) for the government to assure socially and environmentally
compatible energy sources and infrastructure, while promoting indigenous and
new RE resources.
In the circular the department said
that in planning for new transmission infrastructure and/or upgrades to
existing transmission infrastructure, the DoE deems it necessary to ensure the
cost-effective delivery of electricity generated in regions with abundant RE
resources in order to attain sustainable, stable, secure, sufficient,
accessible, and reasonably-priced electricity supply and services.
The Philippine CREZ is intended to
enhance the planning process and strengthen the implementation of the DoE’s
various development plans for energy, distribution, transmission and
renewables.
The DoE said the ideal candidate
area for CREZ are “geographic areas characterized by high-quality, low-cost RE
potential in addition to high levels of private-sector developer interest.”
In the selection process, the
department will also identify a set of transmission or upgrade scenarios that
will enhance the delivery of energy from the candidate RE zones.
The process will include an analysis
of the “economic, operational, environmental, and other costs and benefits
associated with the required transmission enhancement scenarios.”
It will also specify the
cost-effective transmission line enhancements proposed to be included in the
transmission development plan, as reviewed and approved by the DoE.
The DoE said the focus areas of the
CREZ analysis are the power interconnections in Luzon, Visayas and Mindanao.
Under the circular, the DoE will
create a technical advisory committee, which is chaired by the Energy secretary
or a designated representative. Its members include directors of some of the
department’s bureaus, along with the heads of the National Renewable Energy
Board, National Transmission Corp., National Electrification Administration,
and National Grid Corporation of the Philippines. — Victor V. Saulon
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