THE Energy Regulatory Commission (ERC) has drafted new rules to accelerate the adoption of renewable energy in off-grid areas, lower electricity costs and reduce the Universal Charge for Missionary Electrification (UC-ME) paid by consumers nationwide.
In a statement on Thursday, the ERC said the proposed Off-Grid Renewable Energy Distributed Energy Resources Rules set a framework that prioritizes the dispatch of renewable energy sources over diesel generation through targeted operational and financial mechanisms.
Renewable energy sources such as solar and wind will be dispatched ahead of diesel plants. Diesel generators, including those under existing contracts, may be placed on standby when distributed renewable energy supply is sufficient.
The framework also introduces an 80/20 export payment scheme, wherein distributed energy resource owners will receive 80 percent of the subsidized and approved generation rate while distribution utilities will retain 20 percent to support grid upgrades.
Qualified developers may also access incentives, including a cash incentive equivalent to 50 percent of the UC-ME rate per kilowatt-hour generated. Renewable energy certificates for compliance with national targets will be earned and attributed to the mandated participants in the off-grid area.
ERC Chairman and CEO Francis Saturnino Juan said the initiative was aimed at improving affordability and sustainability in underserved communities.
“At the heart of these reforms is a simple objective: to deliver more affordable, reliable, and sustainable power to our off-grid communities while easing the burden on all electricity consumers who bear the UC-ME charge,” Juan said.
The ERC will post the draft rules today and will accept comments until July 23. An online public consultation has been scheduled for July 30.
