DOE to craft policy for new FIT quota

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THE Department of Energy (DOE) is set to come up with a new policy for the next Feed-in-Tariff (FIT) quota in a move to improve the country’s power mix.

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Energy Secretary Carlos Jericho Petilla said the department is now in the process of drafting and finalizing the guidelines for the new policy which his successor can use as reference when imposing a new FIT rate.

To make sure that such policies would be implemented even by the next administration, Petilla said it would be best if those policies become law.

“If it works, I want DOE policies to become law,” Petilla told reporters in a briefing.
He said some conditions should be met first before additional FIT quotas can be allocated.

These requirements include: imposition of a 30-percent share of the renewable energy (RE) to the fuel mix; holding of a bidding for the FIT rate; implementation of the “must dispatch rule”; and grid penetration.

Petilla said if these requirements are met, then the new FIT rate could be increased even by the next administration, adding that the 30 percent share is just a moving target and there is no definite deadline to meet it.

Under the DOE’s fuel mix policy target, 30 percent should come from renewable energy, 30 percent from gas and the remaining 40 percent from other sources.

“If we complete the 23 coal-fired power plants by 2020, we still have to build about 2,700 megawatts of RE in order to maintain the balance,” he said.

For the bidding process, Petilla said the DOE will request the Energy Regulatory Commission (ERC) to amend the FIT quota rules to weed out of the race those that are ineligible.

Petilla said the DOE will come up with Implementing Rules and Regulations (IRR) on the “must dispatch rule” at the Wholesale Electricity Spot Market (WESM).

The IRR provisions will include mandating generation companies to nominate companies to the spot market with a margin of error that is yet to be set by the DOE.

On grid penetration, Petilla said the DOE will come up with a clear policy on how to decongest the transmission networks through the infrastructures of the National Grid Corporation of the Philippines (NGCP).

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