The Department of Energy (DOE) has forthrightly stated that it has not given any approval yet to the proposal of the National Renewable Energy Board (NREB) to hike renewable energy (RE) installations to annual increment of 2.0 to 2.2-percent from what is presently cast at 1.0-percent increment.
“There’s no approval yet from the Secretary to increase it (RE installations) to a higher percentage,” Energy Assistant Secretary Redentor E. Delola said, in reference to the annual escalation in RE project developments that must be integrated into the Renewable Portfolio Standards (RPS) policy for the sector.
“On what NREB was saying: first on the increase in the percentage, we’re still studying that because they’re saying that the 1.0-percent annual increment will not be able to reach the 35% target. So we’re looking at the figures right now, but as it stands, we’re still at 1.0-percent increment,” the energy official said.
Energy Secretary Alfonso G. Cusi similarly indicated that in his meeting with NREB Chairperson Monalisa Dimalanta last December 21, his instruction is for the board to assess first the outcome of the mid-2021 auction of the 2,000 megawatts capacity under RPS before firming up any plans to build up the annual increment to a higher percentage.
“Rather than saying how much we’re going to increase, let’s see first what would be the output of the auction,” the energy chief stressed.
The renewable energy board previously stated that RE installations must be stepped up to at least 2.0-percent increment yearly, if the country has to meet year 2030 target of 35-percent RE share in the mix; and a higher 56-percent share by 2040 for total capacity addition of 22,400MW.
On year one of RE projects rollout under the RPS, Energy Undersecretary Felix William Fuentebella noted that the mandated participants – primarily the distribution utilities -- are still compliant on their required procurement of RE capacities. Year one reference is the kick-off of RPS policy this 2020.
For years 2 and 3, he noted that the 2,000MW RE capacity for auction next year will address the RPS requirement -- and the bidding terms of reference is now being drafted by the Renewable Energy Management Bureau (REMB) of the energy department.
Relative to the P0.23 per kilowatt hour (kWh) rate hike impact of higher increment of RE installations, Delola emphasized that it is part of the study being carried out by the DOE, including ancillary services and cost assumptions in case coal share in the power mix will be reduced because of the moratorium enforcement on the technology.
“We’re validating the figures. There are runs being conducted by the bureau now including the run for the impact of the moratorium on coal – what will be its effect on LCOE (levelized cost of energy) if we increase the total RE share by increasing the RPS requirement,” he explained.
Delola qualified “we’re still doing evaluation on the figures of NREB, because in what NREB does, it calls for DOE policy issuances, that’s why we’re studying it.”