Thursday, September 14, 2017

Philippines: DOE wants further improvements in 'green energy' option rules

Philippines: DOE wants further improvements in 'green energy' option rules

The Department of Energy (DOE) admitted that the draft "Green Energy Option"
rules for the renewable energy (RE) sector had still been "anemic," hence,
further improvements will have to be worked on by the National Renewable
Energy Board.

According to an energy official, the set of rules "would still be up for
further review and adjustments," so they can be more valuable guiding path
on the offer of "green energy" or RE capacities to prospective customers.

Under the current draft rules, the anticipated "Green Energy Option Program"
(GEOP) principally underpinned by RE technologies will be taking strides on
"tricky grounds" because of the demand aggregation set forth in the proposed
policy.

Filipino consumers opting for "clean energy choice" will also need to go
through the hassle of registration with their servicing distribution
utilities (DUs), electric cooperatives (ECs) and/or suppliers.

It is essentially a "more complicated terrain" that the draft rules of the
Philippines' green energy option would be wading through, compared to the
simpler and straightforward contracting that other markets had adhered to.

The set of rules is of four-page document, perceived by the industry to be
more of lethargic form and howls for "the rest is still unwritten" because
it DOEs not delve much on the commercial terms or market peculiarities that
could have come as easy reference to prospective customers.

In the same draft GEOP rules, it was stipulated that "all end-users or
customers (according to class regardless of demand size) may register with
their DUs, electric cooperatives or suppliers their option to source RE
power."

The more ticklish proposition, so far, is under Section 13 stipulating that
"DUs and ECs shall aggregate the demand for each RE, and contract directly
with the RE developers for corresponding requirements net of the customers
who have opted to contract directly with RE developer or supplier."

With the nature of service provision of DUs though wherein their supply
portfolio would often be from mixed sources or blended, it may not thrive as
a "welcome proposition" for consumers to opt for RE or green energy because
one cannot really be sure which energy source the capacity being wheeled
into their homes would be coming from.

The propounded rules further set out that "a DU or EC shall not be required
to supply an end-user that has exercised the option where such supply will
result in increase in the blended generation which shall be passed through
to other end-users of the DU."

On the billing, servicing power utilities are mandated to "reflect in the
monthly electric bills how much monthly energy consumption and generation
charge is provided by RE facilities."

The rules also require that DUs or suppliers would comply to reportorial
requirements and that the Department of Energy (DOE) shall be establishing a
database for such.

As specified, "all DUs, ECs and suppliers shall submit information
reflecting purchases broken down by generating facility, power source and/or
through the WESM (Wholesale Electricity Spot Market) covering the period
that will be defined by the DOE."

In addition, all generation companies are mandated to "submit data on sales
to directly connected customers for the period to be identified by the DOE."

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Link to Original Article:
http://business.mb.com.ph/2017/09/13/doe-wants-further-improvements-in-green
-energy-option-rules/


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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com




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