The threshold amount of electricity from renewable sources sold by the various power firms to consumers has been raised to 2.52 percent beginning this year under a new circular issued by the Department of Energy.
This represents an increase from only 1 percent mandated in an earlier circular that took effect from 2018 to 2022 under guidelines known as the Renewable Portfolio Standards (RPS).
RPS mandates distribution utilities to source an agreed portion of their energy supply from eligible renewable energy (RE) suppliers and contribute to the growth of the industry.
Department circular 2023-05-0015 signed by Energy Secretary Raphael Lotilla on 23 May is now in effect until extended or modified.
DOE department circular 2023-05-0014 mandates the RPS will also be practiced in off-grid areas through several measures, including the submission of RPS compliance plans by Small Power Utilities Group (SPUG) power plants under the National Power Corp. located in far-flung areas not connected to the national power grid.
The circular mandates that RPS compliance plans should include a hybridization program to lessen SPUG power plant reliance on diesel fuel. It also opens SPUG areas to private sector partnerships for the development, financing, construction and operation of RE projects.
SPUG power plants are also allowed to develop their own RE facilities while attached agencies such as the National Electrification Administration and the National Transmission Corp. provide support via capacity building activities.
The RPS are viewed as alternate vehicles providing a guaranteed market for clean sources of energy.
