Renewable energy rules may be ready by start of 2018

THE National Renewable Energy Board ( NREB) expects the rules on renewable portfolio standards (RPS) and green energy options (GEO) to be cleared by yearend and ready for implementation at the start of 2018, its top off icial said.

“We’re done with practically everything. The problem with the issuance of rules by departments is that you have to go through public consultations,” NREB Chairman Jose M. Layug, Jr. told participants of Poyry Energy Day Philippines 2017 seminar in Parañaque City on Tuesday.

The RPS is called for under the Republic Act No. 9513 or the Renewable Energy Act of 2008, which provides fiscal and non-fiscal incentives to private sector developers and manufacturers, and its implementing rules and regulations.

Its purpose is to contribute to the growth of the renewable energy (RE) industry by diversifying energy supply as well as to address environment concerns by reducing greenhouse gas emissions.

NREB has prepared separate RPS rules for the on-grid and off- grid sectors. In all, RPS and GEO are meant to help the Department of Energy (DoE) in reaching a target for new RE installation capacities of 10,000 megawatts (MW) by 2030.

Rules on green energy options offer a mechanism that will provide end-users the option to choose RE resources as their source of energy.

“Definitely for the RPS on-grid rules, we are finished with the public consultation. I’m finalizing it now. [ By] early next week, I’ll endorse [the regulation to] the [DoE] secretary [ Alfonso G. Cusi] with complete simulations for each DU (distribution utility),” Mr. Layug said.

“At least the secretary would know what would be the compliance requirement for each DU and electric cooperative,” he added.

“We’re hoping by Jan. 1, 2018 it will be effective, and then from 2018 to 2022 they have a four-year transition period where each DU and co-op will have to go through a CSP (competitive selection process) and build the RE plant. And then by 2022 we will check compliance,” Mr. Layug said.

On RPS for the off- grid sector, he said NREB still has to hold two more public consultations, although so far the previous hearings were well-received as remote areas need help in reducing their dependence on subsidies.

“Definitely if you integrate renewable energy, especially battery storage, it’s cheaper than utilizing diesel all the time or bunker fuel,” Mr. Layug said.

He said NREB would submit the new rules to the DoE within the month.

“Hopefully, the DoE approves everything by January 2018,” he said, adding that he was looking at the start of next year as the implementation of RPS and GEO.

Sought for comment, Poyry Energy, Inc. President Dominic M. Gemperle said he was hopeful that indeed the rules would be implemented by the start of next year.

Mr. Gemperle said the new rules meant “hope for the developers,” Poyry’s clients. Poyry, a global consulting and engineering company, focuses on the energy, forest industry and infrastructure and environment sectors.

“[ Mr. Layug] said one thing repeatedly: this is going to be submitted to the DoE for final approval,” he said. “Actual implementation, I don’t know.”

NREB is the policy recommendatory and monitoring body for the implementation of the RE Act. —