“From grid-centered approach to consumer-centered use of RE, the DoE, along with all governmental units, is synchronizing efforts to enhance regulatory reforms and effective implementation of all programs.”

– Felix William Fuentebella, Undersecretary, Department of Energy

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“Renewable energy is not just an alternative in the Philippine energy system, but lies at the core of energy planning in helping out the country’s goal of achieving power independence.”

- Monalisa Dimalanta, Chairperson, National Renewable Energy Board of the Philippines

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- Introduction

A big Thank You to all participants on air with us during the Wednesday webinar “Rebooting the Philippine Renewable Landscape”. Leader Associates had the privilege to serve as host with Usec. Felix of Department of Energy and Atty. Monalisa of National Renewable Energy Board in addressing the ongoing programs and core policy directions for the country’s future RE-form.

 

Noteworthily, the article is also dedicated to Atty. Monalisa in helping out re-recording the parts that were lost during the livestream as a result of audio/technical issues. An even more extended explanation along with audience Q&A are covered in the video clips as follows:

 

 

- Program Buckets in Finding Synergies among Consumer, DU, System, and Market

 

      Programs that Benefit Both On-grid and Off-grid Systems

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•  Renewable Portfolio Standards (imposed on Mandated Participants to source RE energy at a minimum 1% of electricity sold above FiT allocation. However, price cap formula on the Renewable Energy Certificates remain pending within ERC.)

 

• EVOSS Act (RA. 11234, abbrev. of the Energy Virtual One-Stop Shop for the purpose of streamlining, digitizing, and mostly importantly tracking the permitting processes of power generation, transmission and distribution projects. Implementing framework issued already and system is in trial phase.) 

 

      Programs that Benefit On-grid Approach​

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• FiT System (remaining capacities for subscription only available to Hydropower projects at the moment)

 

• Net Metering Scheme (mostly popular in the urban area. An enhanced version is under review within DoE & ERC to boost engagement of large consumers and households)

 

• Green Energy Option Program (A voluntary market created for encouraging C&I procurement of renewables. For trading and supplying RE electricity in the program, “RE suppliers” shall obtain operating permits from DoE in advance. Issued already and will be operational within 2020)

 

• Green Energy Auction Program, with Green Energy Tariff (The auction will be held annually as means to facilitate compliance with RPS. In the auction, only renewable sources can participate (key difference from WESM), with prices varied in different grids. Major participants would be the renewable energy developers. Distribution utilities can be exempted from the auction if they demonstrate that they have a mature procurement system running on their own to meet the RPS requirement. Auction program finalized and shall be launched by the end of April)

 

• Greening the Grid and Competitive Renewable Energy Zones (To help developers in identifying the most resources and T&D available areas to accommodate project)

     

      Off-grid / Island Electrification 

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• Missionary Electrification Program (Auction available as well as contractors of NPC or the distribution utilities.)

 

• Proposed Microgrid Systems Act (Establishment of micro-grid programs to accelerate electrification in off-grid areas, pending in the Senate)

  

- Challenges Remain:

 

• Foreign Investment Restriction remain unsolved (60/40 Requirements, Biomass excluded)

 

• Availability of Financing (There is no problem with the liquidity in local, however there is still gap in appreciation of parameters of PH banks in financing and operating parameters of RE projects, hence the hurdle at the moment.)

 

- Legal References: (Click to redirect) 

• RPS Rules for On-Grid Areas 

• RPS Rules for Off-Grid Areas 

• REM Rules 

• GEOP 

• DOE Net Metering Reference Guide 

• ERC Resolution No. 09, Series of 2013 (A Resolution Adopting the Rules Enabling the Net Metering Program for Renewable Energy) 

• ERC Resolution No. 06, Series of 2019 (A Resolution Adopting the Amendments to the Rules Enabling the Net-Metering Program for Renewable Energy) 

• EVOSS Act 

• New Omnibus Guidelines on Award and Administration of RE Contracts 

• Governmental Circular on Qualified Third-party Providers