The Net Metering Program (NMP) is an important empowerment option for our consumers which Sec. Alfonso G. Cusi seeks to expand. Hence, the comments of the Energy Regulatory Commission (ERC) on the Department of Energy’s proposed Net Metering Policy are well-taken and highly regarded.
We are pleased that the ERC is one with the Department of Energy (DOE) in pushing for the continued growth of the country’s renewable energy (RE) sector. As part of the DOE mandate, we have been actively looking for ways to accelerate the exploration and development of RE resources, including hybrid systems, to help the country attain energy self-reliance and minimize its dependence on fossil fuels.
EMPOWERING “RE PROSUMERS”
In monitoring the implementation of the RE Act of 2008, we noted the apparent low participation rate in the NMP for RE, which started in 2015. As a matter of fact, in the various fora and public consultations on the matter that we have either conducted or participated in, issues that hinder consumer engagement in RE’s NMP have surfaced. These include limited financing options, lengthy and complicated permitting processes, the lack of standardized distributed photovoltaic installation procedures, as well as the cost burden of and the varying standards related to the conduct of distribution impact studies. Moreover, we also receive complaints regarding reported inaction of the Distribution Utilities (DUs) on applications for the Net-Metering arrangement with the customers.
In order for us to have a deeper understanding of the situation and to promptly establish measures that would encourage greater participation of electricity end-users in the RE NMP, we commissioned a study through technical assistance from the United States Agency for International Development’s Clean Power Asia Program, on “Distributed Photovoltaic Economic and Technical Impact Analysis in the Philippines”.
As part of the study’s development, we conducted a series of workshops and focus group discussions, which were participated in by key industry stakeholders, including the ERC, Meralco, Visayan Electric Corporation, other DUs, and other RE practitioners. All inputs gathered have then been incorporated into our proposed DC. The proposed DC was then subjected to nationwide public consultations in October of this year in order to solicit more insights, comments, and suggestions on its contents.
MORE OPTIONS FOR CONSUMERS
We would like to clarify that the draft DC does not only cover certain amendments in the Net-Metering Rules, but also other measures that would support our goal of maximizing RE utilization to achieve energy security. In particular, Sections 6 and 7 of the draft DC are innovations that would facilitate tapping potential additional supply on a voluntary basis, and in cases where there would be supply shortfalls. These proposed revisions have been patterned after the Interruptible Load Program, which is currently being implemented, except that RE will be used as the fuel resource, instead of traditional oil based sources. This is a significant program that enables the simultaneous empowerment of electricity end-users in managing their electricity requirements, and providing them with the capacity to contribute to the electricity grid in times of need.
BETTER CONSUMER COMPENSATION MECHANISM
As for the two compensation mechanisms, we introduced the classical net meeting concept, which refers to net metering valued at kilowatt hour, instead of the DU’s blended generation rate, with the final determination of the appropriate compensation mechanism vested upon the ERC.
CONSOLIDATING STAKEHOLDERS’ COMMENTS
Following our standard procedures before issuing any policy, we are currently reviewing all insights, comments, and suggestions we have received from our stakeholders, including those from the ERC, which we received on 18 November 2019.
Lastly, we would like to note that there are also several legislative bills attempting to amend, or prescribe a revised NMP.
We would like to assure both our stakeholders and the general public that the DOE is tirelessly working for the best interests of electricity end-users and the energy sector as a whole.
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