Published
By Myrna M. Velasco
The Department of
Energy (DOE) is firming up a “template contract” that shall guide Renewable
Energy (RE) industry players in their offer of capacity or ‘clean energy
supply’ to consumers.
In line with
this, the department is undertaking public consultations with stakeholders so
it can gather inputs on its mandated crafting of the template contract.
Currently scheduled are those in Cebu City, Davao City, Batangas and Clark,
Pampanga within this June until next month.
This is being done under
the ambit of the Green Energy Option Program (GEOP) that was concretized as a
policy for the RE sector since September last year – the enforcement of which
is now done on voluntary basis.
“To ensure the
compliance and successful implementation, the template of the GEOP supply
contract will be presented to serve as guidance to GEOP participants,” the DOE
said.
GEOP per se will bestow
that “power of choice” on consumers to patronize RE as source of their
electricity supply – and that could be procured directly from the RE
generators.
That is similar to the
principle of the Retail Competition and Open Access (RCOA) that is being
instituted in the power industry – although for RCOA, it has to follow
thresholds before it can get down to the level of households; while for GEOP,
it is envisioned that even residential end-users can already opt for that
so-called “green energy choice.”
In addition to the
“template contract” framing, the DOE indicated that it will also be getting
stakeholders’ pulse and inputs on the issuance of “operating permit” to RE
suppliers.
According to the
department, the GEOP “intends to increase the use of RE to optimize the power
supply mix of off-grid areas that are usually served by expensive diesel
plants.”
RE facilities,
including the hybrid systems, are currently being pushed as the technology
option for island-grids as well as far-flung areas which for the longest time
had been leaning on subsidies just so they can be served with their electricity
needs.
Carrying out the “green
energy option” policy broadly coincides with the implementation of the
Renewable Portfolio Standards (RPS), another edict that will boost capacity
off-take from RE plants.
The ‘inception year’
for the RPS will be 2020, when major addition to RE capacity will be
concretized because the distribution utilities (DUs) are mandated to procure
certain percentage of their supply portfolio from RE generating facilities.
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