DOE: Preference of RE plants in spot market to ramp up energy security
MANILA, Philippines — The Department of Energy (DOE) is mulling over the issuance of an order requiring the wholesale electricity spot market (WESM) to prioritize renewable energy (RE) plants in its operations.
If set in place, the preferred dispatch of RE-based power plants in the WESM will ensure energy security and lower spot market charges, the DOE said in a draft department order posted on its website Friday.
The WESM is an avenue where power is traded at higher prices compared to pre-agreed supply deals. Power providers buy from the spot market to tide over any gaps in supply.
The DOE's department order, which is up for comments from stakeholders, seeks to include eligible renewables plants, such as wind, solar, run-of-river hydro, ocean energy, biomass, geothermal and hydro generators, as "preferential dispatch" units.
"The development and utilization of indigenous RE resources, and preferential dispatch in the grid and in the WESM of RE-based power plants will reduce dependence to importation of conventional energy resources, thereby making the country’s supply and delivery of electric power more stable and secured from international setbacks," the DOE's department order read.
"The market settlement prices will [also] be reduced when all generating units utilizing RE resources are given preferential dispatch in the WESM," it added, citing a study conducted by the DOE and the Clean, Affordable and Secure Energy for Southeast Asia (CASE) Project.
Under the Renewable Energy Act of 2008, the state is required to ramp up the use of renewables by creating a conducive environment for such investments through fiscal and non-fiscal incentives, among others.
The DOE said interested RE stakeholders may send their comments about the department order until March 22 through the email [email protected].
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