The Department of Energy issued a draft circular asking power distributors to source a percentage of their power requirements from natural gas facilities.
It issued the draft circular prescribing the policy framework on the development of natural gas power generation facilities in the Luzon grid in support of the country’s energy transition. The circular, which is subject to public comment and consultations, spells out the responsibilities of the energy industry participants.
It said all distribution utilities should source a percentage of their demand as determined by the DOE, from natural gas-fired power generation facilities. The DOE would determine the mandated minimum percentage that DUs are required to source from natural gas-fired power generation facilities.
It said the DUs should prepare and submit distribution development plan and power supply procurement plan, integrating the mandated percentage power supply sourced from the natural gas-fired power generation facilities.
“In case a DU is fully contracted, it shall reflect in its DDP and the PSPP the mandated percentage to be sourced from natural gas-fired power generation facilities for its future power supply,” the circular said. Alena Mae S. Flores