Renewable energy policy on sourcing out in first quarter

MANILA, Philippines - The Department of Energy (DOE) is set to come out with a policy requiring distribution utilities to source electricity from renewable energy (RE) power generators, aimed to spur further investments in the sector in the first quarter of next year.

The agency is currently going over details of the Renewable Portfolio Standards (RPS), DOE secretary Zenaida Monsada said.

These details include percentage of RE supply that would be bought from generators and distribution cost.

As for the cost, Monsada said, generation companies already submitted a draft proposal to former DOE secretary Jericho Petilla.

“We’re still looking at what that percentage is and how to implement the RPS. The DOE will draft the rules but there will still be public consultations,” Monsada said.

Monsada said a circular for the RPS is targeted for release by the first quarter of 2016.

As defined under the Renewable Energy Law of 2008, the RPS refers to a market-based policy that requires electricity suppliers to source an agreed portion of their energy supply from eligible RE sources.

The purpose of the RPS is to contribute to the growth of the renewable energy industry by diversifying energy supply and help address environmental concerns of the country by reducing greenhouse gas emissions.