ERC issues rules on green energy option scheme

Electricity consumers with peak demand of at least 100 kilowatts may soon be able to choose renewable energy facilities as their source of electricity as the Energy Regulatory Commission (ERC) has issued the rules for the Green Energy Option Program (GEOP).The regulatory framework sets the technical and interconnection standards and wheeling fees of renewable energy-based power generating facilities.

The rules are spelled out in ERC Resolution No. 8, Series of 2021, which is dated April 22 but posted for public access only on Aug. 16. It will be in force two weeks after having been published in a newspaper of general circulation.

“In the long run, the GEOP will help us achieve energy independence as it reduces our dependence on imported energy sources,” ERC chair Agnes Devanadera said in a statement.

Aside from consumers with a peak demand of 100 kw for the past 12 months—most likely businesses—electricity end-users that qualify for the GEOP are those that have been operating for less than a year when the rules take effect.

In a related development, the Department of Energy (DOE) expects to finalize within this month the new guidelines for the Green Energy Auctions Program (GEAP) as well as amendments to the implementing rules of the Renewable Energy Act, after having conducted online public consultations on Aug. 5-6.

The GEAP covers power generation companies that seek to take part in the market as suppliers for consumers who qualify for the GEOP.

“We have decided to come up with a more practical, proven and effective framework to facilitate increase investment in RE (renewable energy) capacities through a level-playing field that would result in the attainment of transparent and competitive rates,” said Mylene Capongcol, director of the Renewable Energy Management Bureau.

Capongcol said the purpose of the new guidelines on GEAP was to “provide immediate and timely investments, support the development of, and increase access to financing for new or additional capacities under a competitive process.”

The DOE expects to be able to conduct the first round of competitive bidding in October.