Manila Electric Co., the biggest electricity retailer, is seeking for more time to implement the adjusted 2.52 percent annual incremental renewable energy percentage under the Renewable Portfolio Standards on-grid rules.
The Department of Energy earlier issued a draft circular adopting the 2.52 percent annual incremental renewable energy percentage under the RPS on-grid rules starting 2023.
RPS is a policy mechanism that requires electric power industry participants such as generators, distribution utilities like Meralco and suppliers to secure or produce a specified fraction of their electricity from eligible RE resources.
“Any changes in the RPS percentage imposed on the mandated participants will require careful planning on their sourcing strategy and program. We, therefore, hope that the mandated participants will be given enough time to comply with the proposed adjustment,” said Lawrence Fernandez, Meralco vice president and head of utility economics in a letter to Mylene Capongcol, director of the DOE Renewable Energy Management Bureau.
Meralco said in its comments to the draft circular that DOE should consider the time frame, specifically as it is now in the third quarter and competitive selection process could take up to six months to conclude.
It said the resulting power supply agreements of the CSP would need to undergo proceedings with the Energy Regulatory Commission and it would take two or more years to construct a power plant.
Meralco said DOE highlighted from the public consultation that that the circular should be read in concomitance with the other initiatives of the agency such as the Net Metering Program, Green Energy Option Program and Green Energy Auction Program.
The company said it was also raised during the public consultation that once the GEAP, which would auction off an initial 2,000 megawatts of renewable energy supply, was implemented, mandated participants would not be required to comply with the 2.52 percent annual percentage increment until 2025.
