Manila: The government's move towards increasing the utilization of renewable energy (RE) is set to gain momentum with the Energy Regulatory Commission (ERC) drafting new rules aimed at reducing power costs. ERC Chairperson and Chief Executive Officer (CEO) lawyer Francis Saturnino Juan announced that this initiative will also lessen the cost burden on power consumers resulting from the Universal Charge for Missionary Electrification (UC-ME).

According to Philippines News Agency, the proposed off-grid RE Distributed Energy Resources (DER) policies will establish a framework prioritizing the dispatch of renewable energy sources over diesel generation. This will be achieved through targeted operational and financial mechanisms designed to enhance the use of clean energy and decrease reliance on imported diesel fuel, ultimately aiming to provide cheaper energy solutions.

Francis Saturnino Juan emphasized that the core objective of these reforms is to deliver more affordable, reliable, and sustainable power to off-grid communities while alleviating the financial burden on all electricity consumers subject to the UC-ME charge. The draft rules propose that DER owners receive 80 percent of the subsidized and approved generation rate (SAGR), with distribution utilities (DUs) allocated 20 percent for grid maintenance and upgrades.

Additionally, developers can benefit from incentives such as a cash incentive equivalent to 50 percent of the UC-ME rate per kilowatt-hour generated, alongside earning RE certificates to meet national renewable energy targets. The ERC plans to release the draft rules to the public on July 10, with public comments being accepted until July 23. Public consultations are scheduled for July 30, conducted via Microsoft Teams.