MANILA – The government’s shifts towards greater utilization of renewable energy (RE) will get further boost from the rules that the Energy Regulatory Commission (ERC) is drafting to lower power costs.
In a briefing Thursday, ERC Chairperson and Chief Executive Officer (CEO) lawyer Francis Saturnino Juan said this move will also reduce power consumers’ cost for the Universal Charge for Missionary Electrification (UC-ME).
He said the planned off-grid RE Distributed Energy Resources (DER) policies will provide a framework that prioritizes dispatching RE sources over diesel generation through targeted operational and financial mechanisms.
This, he said, will increase the use of clean energy and lessen dependence on imported diesel fuel --all aimed at providing cheaper energy.
“At the heart of these reforms is a simple objective: to deliver more affordable, reliable, and sustainable power to our off-grid communities while easing the burden on all electricity consumers who bear the UC-ME charge,” he said.
Under the draft rules, DER owners will be paid 80 percent of the subsidized and approved generation rate (SAGR), while distribution utilities (DUs) will receive 20 percent for grid maintenance and upgrades.
Developers may avail of incentives, including a cash incentive equivalent to 50 percent of the UC-ME rate per kilowatt-hour generated, while earning RE certificates for compliance with national RE targets.
ERC is scheduled to make public the draft rules on July 10, will accept public comments until July 23, and conduct public consultations on July 30 through Microsoft Teams. (PNA)
