Power sellers set to get supplies from RE

As part of efforts to wean the country off coal- and oil-based fuels, the Department of Energy (DOE) would soon direct distribution utilities to get a certain percentage of their power supplies from renewable energy (RE) sources.

The DOE was expected to finalize “soon” the circular, which would contain the Renewable Portfolio Standards, after it has finished several rounds of public consultations.


Section 3.c. of the draft paper requires that the utilities must source not less than one percent of their yearly requirements from renewable energy. Renewable energy sources include biomass power, waste to energy technology, wind energy, solar energy, run of river hydropower sources, impounding hydropower sources that meet internationally accepted standards, ocean energy, hybrid systems (diesel-solar, among others), geothermal energy, and other technologies that may be later identified by the DOE.

The circular also mandates the creation of an RE Market where supply certificates will be traded.


Compliance with the standards will not be mandatory initially. There will be a transition period of one year from the start of the RE Market. The period will allow the participants to prepare all information and data required in the establishment of the market.

“Upon the lapse of the transition period, mandatory compliance with the RPS shall commence,” the DOE circular said.

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