The Department of Energy issued a new directive establishing and developing competitive renewable energy zones in the country to accelerate the development of resources in the country.
The circular aims to identify Competitive Renewable Energy Zones and complement a study entitled “Greening the Grid: Solar and Wind Integration Study for Luzon-Visayas systems in the Philippines,” which seeks to achieve 30 percent and 50 percent RE, respectively, by 2030.
“Whereas, in planning for new transmission infrastructure and/or upgrades to existing transmission infrastructure, the DeE deems it necessary to ensure the cost-effective delivery of electricity generated in regions with abundant RE resources in order to attain sustainable, secure, sufficient, accessible and reasonably-priced electricity supply and services,” the department said.
It said the CREZ would enhance the planning process and strengthen the implementation of the Philippine Energy Plan, Philippine Development Plan, Transmission Development Plan and the National Renewable Energy Plan.
“To achieve this, the DoE, in partnership with other stakeholders, shall identify and develop Renewable Energy Zones and upgrade and expand transmission facilities through policy initiatives and activities that shall enable the optimal use of the indigenous RE resources of the country,” it said.
The CREZ Process aims to support the DoE in overcoming RE development obstacles, such as transmission constraints and regulatory barriers to financial investments in the private sector.
It will identify RE zones which represent areas characterized by high-quality, low cost RE potential in addition to high levels of private sector developer interest.