by Alena Mae S. Flores – June 23, 2016 at 11:25 pm
from Manila Standard Today
The Energy Department issued a draft circular requiring electric power companies to source at least 1 percent of their annual energy demand from renewable energy resources for the next 10 years.
It said the draft circular on renewable energy portfolio standards or RPS was being adopted to contribute to the growth of the renewable energy industry by diversifying energy supply. It said the draft circular was subject to further comments from the industry.
RPS refers to a market-based policy that mandates participating companies to source an agreed portion of energy supply from eligible RE resources.
The department said the rules, once effective, should be implemented across three power grids provided that the department issued separate rules for the operationalization of the RPS in Mindanao until the Wholesale Electricity Spot Market was implemented in the said region.
The industry participants required to source not less than one percent of annual demand from renewable energy include distribution utilities, retail electricity suppliers, generating companies, distributors within the economic zones and other entities approved by the department.