DOE mulls 'green rate' for renewable energy players

The Department of Energy is planning to set a ceiling price for new renewable energy players to attract investors and promote competition in the sub-sector.

In a statement on Thursday, Energy Secretary Alfonso Cusi said, "the DOE has initiated a proposal to establish a Green Energy Rate for 2,000MW of new renewable energy generation capacity."

Likewise, Cusi said the National Renewable Energy Board (NREB) is expected to submit its recommendations in the coming months.

"To be clear, the Green Energy Rate will not be a Feed-in-Tariff program and will not be subsidizing the renewable energy generation sector –they will need to be competitive with current market rates," he added.

"Instead, the Green Energy Rate will support the RE generators with securing PSAs (power supply agreements) and selling their energy by setting a base-line price."

Moreover, he noted that the DOE is committed to encourage competition among all the technologies.

"All energy options will be considered on the basis of affordability, reliability, security, and sustainability," he said, adding, "It is important that we continue to develop renewable and indigenous energy sources in order to ensure long-term energy security."

Cusi made the statement after President Rodrigo Duterte gave the directive during his fourth State of the Nation Address (SONA) to fast-track the development of renewable energy sources, and reduce dependence on fossil fuels.

"The DOE is encouraged by the President’s comments, indeed, his leadership will be pivotal for the DOE to implement policies and regulations that ensure the affordability, reliability, security and sustainability of energy in the Philippines for generations to come," Cusi said.

"The Philippines is already a leader in sustainability: the World Energy Council has ranked the Philippines number 1 for energy sustainability on its Energy Trilemma Index since 2015," he added. —LBG, GMA News