Higher renewable energy growth mandate takes effect
MANILA -The Department of Energy (DOE) has doubled the increment of renewable energy (RE) installations under its Renewable Portfolio Standards (RPS) policy in the main grid to 2.52 percent beginning this year in a bid to accelerate the agency’s goal of increasing the share of renewables in the Philippine energy mix.
This means that the increase in the share of RE in the supply portfolio of off-taker distribution utilities (DUs) must have a growth rate of 2.52 percent every year.
Under the recently issued Department Circular No. 2023-05-0015, Energy Secretary Raphael Lotilla said all mandated participants in the country’s three island grids were covered by the new rate.
Mandated participants include all DUs, retail electricity suppliers, generating companies and other entities approved by the DOE.
The new rate will be applied to the net electricity sales of the mandated participants and will continue to be adjusted by the DOE “as necessary to ensure that the objectives of the [Renewable Energy Act of 2008] are achieved.”
From 2018 to 2022, the rate was maintained at 1 percent. But this was increased based on the DOE’s annual review aimed at accelerating the agency’s plan to increase RE share in the energy mix from the current 21 percent to 35 percent by 2030 and 50 percent by 2040.
The DOE also amended the RPS on-grid rules to stipulate that mandated participants must comply with the least-cost sourcing of power supply through competitive bidding and other regulations.
“In the case of the DUs, the ERC shall … issue the rules on least-cost mandate with respect to the procurement of RE generation supply for their captive market, as part of complying with their minimum RPS requirements,” the DOE said. INQ
