June 23, 2016
from Business Mirror
THE Department of Energy (DOE) released on Monday the draft rules mandating all distribution utilities (DUs), among others, to source a portion of their energy supply from eligible renewable-energy (RE) sources.
This policy is known as the Renewable Portfolio Standards (RPS), which is intended to contribute to the growth of RE industry. If implemented, this will help the agency attain its goal of maintaining the RE share in the national energy mix to at least 35 percent by 2030.
The scope of the proposed RPS (Renewable Portfolio Standards) rules includes the following: types of RE sources; yearly minimum RPS requirement; annual minimum incremental percentage of electricity sold by each mandated participant required to be sourced from eligible RE resources and which shall, in no case, be less than 1 percent of its annual energy demand over the next 10 years; and means of compliance by the mandated participant set by the government to meet the RPS requirements.
The following entities would be mandated to participate in the program: DUs, Licensed Retail Electricity Supplier, Directly Connected Customers (DCCs), Supplier of Last Resort, entities authorized as distributors within the economic zones, and generating companies only to the extent of their actual supply to their DCCs.
A composite team will determine the minimum annual RPS requirement per mandated participant.
The members of the team will be composed of representatives from the National Renewable Energy Board, Electric Power Industry Management Bureau, Renewable Energy Management Bureau, Legal Services and Energy Policy and Planning Bureau.
Meanwhile, the minimum annual increment in the RPS level shall be initially set at 2.15 percent to be applied to the actual total supply portfolio of the mandated participant in each grid for the previous year, stated the draft circular.
“The mandated participant shall be guided by the RE generation targets to be determined by the NREB consistent with the targets set in the in the National Renewable Energy Program duly approved by the DOE,” stated the draft policy.
RE sources include biomass, waste to energy technology, wind, solar, run-of-river, impounding hydropower sources that meet internationally accepted standards, ocean, hybrid systems, geothermal and other RE technologies that may be later identified by the DOE.