DOE: REM to go live ahead of other RE policies rollout
BY LENIE LECTURA – OCTOBER 11, 2021
from Business Mirror
THE Department of Energy (DOE) has assured that the renewable energy market (REM) will be established ahead of the implementation of other policies meant to increase RE production and meet renewables targets.
REM is the venue for the trading of renewable energy certificates equivalent to an amount of power generated from RE resources and is intended as a facility for mandated participants to comply with their Renewable Portfolio Standards (RPS) obligation.
“Yes, REM will be operational before the GEAP [Green Energy Auctions Program] delivery period which is still in 2023. The same goes with proposed RPS increase which is also proposed to start in 2023,” said DOE Assistant Secretary Redentor Delola via SMS.
Delola’s reply was in response to an appeal by the Manila Electric Co. (Meralco).
“We would like to respectfully note that the institution and operationalization of the REM is essential to ensure the smooth implementation and operationalization of the GEAP, GEOP (Green Energy Option Program) and this draft circular,” said Meralco Vice President and Utility Economics Head Lawrence Fernandez.
RPS, meanwhile, is a policy mechanism that requires electric power industry participants such as generators, distribution utilities and suppliers to secure or produce a specified fraction of their electricity from eligible RE resources.
From 1 percent, the DOE adjusted the RPS annual percentage increment for on-grid areas to 2.52 percent.
Meralco has also asked the DOE to allow mandated participants to implement the RPS adjusted rate, saying any changes in the RPS percentage would require careful planning on their sourcing strategy and program.
Besides, Fernandez pointed out that any increase in increment should consider that “we are already in the third quarter of 2021; competitive selection process can take up to six months, resulting power supply agreements will need to undergo ERC (Energy Regulatory Commission) proceedings and it takes two or more years to develop and construct a power plant.”
Delola assured that it will take into consideration the request of Meralco. “We are still going through all the submitted comments and position papers on the increase. As always, we will look into all their arguments.”
Under GEOP, consumers with peak demand of at least 100 kilowatts may choose RE as their source of electricity.
GEAP, meanwhile, covers power generation companies that will participate in the market as suppliers for consumers who qualify for the GEOP.
Meralco earlier told the DOE that once the GEAP is implemented, mandated participants should not be required to comply with the 2.52 percent annual percentage increment until 2025.
