On-grid RE system revised
By Nidz Godino
“Private sector investments are central in achieving our renewable energy targets and vision. ..to date, share of renewable energy in the power generation mix is 22 percent…our target share is 35 percent by 2030 and 50 percent by 2040,” Energy Secretary Raphael Lotilla said Department of Energy (DOE) has increased percentage of utilization of renewable energy (RE) for on-grid areas from 1 percent to 2.52 percent as part of government’s thrust on transitioning toward sustainable and clean energy future.
In statement Energy department said increase of 2.52 percent shall take effect in 2023 based on Department Circular 2022-09-0030, which prescribes adjusted annual percentage increment for all participants of Renewable Portfolio Standards (RPS) for on-grid areas.
The increase in utilization of renewable energy in our power generation mix would encourage more investors and end-users to develop and utilize domestic energy sources,” Lotilla said.
As of June 2022, DOE has awarded total of 998 renewable energy contracts with an aggregate installed capacity of 5,460.59 megawatts (MW) and potential capacity of 61,613.81 MW. This generated around P270.8-billion investments for the country.
The RPS is policy mechanism under Republic Act 9513, or “Renewable Energy Act of 2008,” designed to increase use of RE sources for electricity generation. This requires or encourages electricity suppliers, particularly distribution utilities, to source or produce specified fraction of their power supply from eligible RE resources. It is also mechanism designed to provide guaranteed market for renewable energy.
The circular also mandates an annual review of percentage increment to monitor compliance and adjustments in case of constraints in the timely completion of eligible RE facilities.
“By increasing annual percentage overtime, renewable energy would drive us on a path toward energy sustainability,” the Energy chief stressed.
For many years, power plants in the Philippines have been heavily reliant on coal, which is considered to be world’s dirtiest fuel. This makes up almost half of the country’s energy production.
In his first State of the Nation Address, President Ferdinand “Bongbong” Marcos Jr. committed to increase and further develop country’s RE sources in response to increasing energy demand and climate change.
In 2021, Philippines total coal imports reached 31.238 million metric tons (MMT), as against country’s total coal consumption at 35.836 MMT. This translates to 87.2 percent dependence on coal importation.
The country’s current energy mix is at 37.1 percent coal, 34.6 percent oil, 16.5 percent renewables, 5.5 percent natural gas, 4.5 percent hydropower and 1.8 percent geothermal.
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