The Energy Department plans to issue the circular governing the green energy pricing program this month.
“Yes, [it is] possible [for] first-quarter launch. After the issuance of circular, ERC will have to set the pre-approved rate [initial market values] for RE which will be the cap for the auction that DOE will conduct,” National Renewable Energy Board chairperson Monalisa Dimalanta said.
“DOE wants to issue the circular by end of January so that the other timelines will start moving along,” she said.
NREB is the implementing agency of the Renewable Energy Law of 2008 which aims to promote widespread renewable energy use in the country. The department is conducting consultations on the draft GEPP rules.
Under the draft circular, RE developers can offer to supply a specified volume of electricity generated by their facilities at prices pursuant to GEPP. The circular will facilitate contracting, on a voluntary basis, by qualified RE projects through a competitive process called green energy auction. The auction will be conducted through an electronic bidding.
The department said the circular aimed to assist the RE participants in their compliance with the renewable energy portfolio standards.
It said the circular would also mitigate market exposure and risks related to RE projects and address price volatility in procurement of RE certificates.
The circular sets the green energy tariff as the benchmark rate for RE in the country.
Dimalanta earlier said the GEPP would also promote more RE investments. “Based on the instructions of the secretary, the main objective is to promote more investments in the RE sector considering that it won’t have feed-in tariffs and another round of feed-in tariffs anymore, so it’s really to attract more investments and the idea is to create a market for them to facilitate their access to market for the renewable energy,” Dimalanta said.
She said that under the GEPP, a price would be set, under which interested generators could offer their capacity, “and then we will allocate that to the other distribution facilities who are required to purchase RE because of their RPS mandate.” Alena Mae S. Flores
Energy Secretary Alfonso Cusi earlier asked NREB “to review the concept of giving allocation to renewable energy.”
“We will allocate [the 2,000 MW capacity]. [It] depends on the energy type,” Cusi said.
Cusi said the NREB, together with industry players, would study the program. “The one who will set the ceiling price, NREB will discuss with the players and come up with the recommendation,” he said.
Cusi said the proposed allocation would form part of the government’s power generation capacity building to meet the growing power demand.
