The Energy Regulatory Commission (ERC) has issued the rules on distributed energy resources (DER) to guide consumers and big-ticket users with their own solar rooftop installations on the capacity that they can export to the grid and how they can be compensated for that.
These key provisions contained under the ERC Rules on DER will essentially increase capacity export of those who have been producing their own power supply and boost overall supply into the grid.
For instance, end-users with at least 1.0-megawatt solar rooftop installation can feed into the grid at least 30 percent of their capacity means 300 300 kilowatts (kW) could be injected into the power system.
“Under the adopted DER rules, on-grid or off-grid DER end-users, utilizing renewable energy, with a maximum nameplate capacity of 1MW, can export a maximum of 30-percent of its excess capacity to the distribution system and be compensated for it,” the newly issued ERC rules stated.
The ERC Rules will take effect after 15 days following its required publication in a newspaper of general circulation or in the official gazette.
DER refers to smaller generation units that are sited on the consumers’ side of the meter. This includes solar rooftop installations, now a choice for consumers who are generating their own electricity supply.
The ERC emphasized that the rules “aim to encourage development and utilization of DER, promote energy quality, reliability, security, affordability and sustainability,” adding that “this is consistent with the policy of the state to accelerate the development of RE toward reducing the country’s dependence on fossil fuels and minimizing the exposure to price fluctuations in the international markets.”
Embracing DER as solution to the country’s power supply predicaments is seen critical especially amid, especially during surges in demand.
Those with their own power generation source would be able to shave off demand from the grid and if they have excess generation, they can also supply the grid.
According to ERC Chairperson Monalisa C. Dimalanta, “the DER rules democratize the power grid. This will enable consumers to supplement the power supply coming from large utilities and power producers.”
“Its significance cannot be further emphasized as we seek ways to cushion the impact of rising fuel prices that concommitantly impact upon electricity rates,” said Dimalanta.
The DER rules will set out the “guidelines, interconnection standards, certificate of compliance (COC) requirements, pricing methodologies, commercial arrangements governing the sale of energy produced and operations of the DER and payment of subsidies,” including lifeline rates, senior citizen subsidy and other subsidies instituted by law.
The rules further prescribe “a carve-out provision that will enable DUs to reduce its existing contracted capacity under ERC-approved power supply agreements (PSAs),” emphasizing that “this will ensure the avoidance of stranded contracted capacities, while at the same time empowering individuals to participate in the energy network.”