Cusi signs green energy tariff program

Energy Secretary Alfonso Cusi signed the circular to implement the Green Energy Tariff Program, which includes contracting of supply from qualified renewable energy projects under a competitive process.

“The policy was signed July 14 and was [for] publication. Basically, the policy just lays down the framework for the auction,” Energy Assistant Secretary Redentor Delola said during a webinar organized by the Clean Energy Investment Accelerator in coordination with the National Renewable Energy Board and the National Electrification Administration.

Delola said the department would draft rules governing the auction. “That is something that we will work on with distribution utilities especially because the DUs are the mandated participants,” he said.

A previous draft circular stated that RE developers could supply a specified volume of electricity generated by their facilities at prices pursuant to the program. It aimed to facilitate contracting by qualified RE projects through a competitive process or bidding called the green energy auction.

Qualified suppliers can offer to supply a specific volume of electricity generated by their facilities to be covered by green power supply agreements at prices under the program.

“This [circular] will look into the requirement of the system moving forward…Initially, we’re looking at everybody to participating in the program,” Delola said.

He said the department would consolidate all of the requirements and make it as a single requirement.

“The capacity will be dispatched to the market.  The energy will be settled through a mechanism within the market. So that’s how we’re looking at implementing the green energy tariff program that will satisfy the requirements of RPS [renewable energy portfolio standards] and supply-demand requirement of DUs,” Delola said.

National Renewable Energy Board chairperson Monalisa Dimalanta said DUs wanted greater involvement in crafting the rules of the auction.

“That’s part of the exercise because there will be specific auction rules that will be issued per auction. The DUs will definitely be part of that process,” Dimalanta said.