Power distribution utilities will be mandated to source a minimum portion of energy from renewables.
The Philippines’ Department of Energy (DOE) is hoping to fast-track the implementation of two key renewable energy policies in an effort to reduce the country’s dependence on coal, Reuters reports.
The Southeast Asian nation aims to double its power generation capacity by 2030 to support a growing economy, but remains heavily reliant on coal, the cheapest yet dirty fuel option.
Recent years saw the rash of approvals for coal-fired plants in the Philippines as it struggles to reduce the cost of electricity, amongst the highest in Asia, to attract more foreign investments.
Under the first policy, called the Renewable Portfolio Standards, energy secretary Alfonso Cusi said power distribution utilities will be mandated to source a minimum portion of energy from renewable sources, thus guaranteeing a market for RE producers.
The second policy, called the Green Energy Option, “will empower consumers to demand that their energy is sourced from renewable resources,” Cusi said.
He said the DOE will also establish a Green Energy Rate for 2,000 megawatts of new RE capacity, or a baseline price that will “support the RE generators with securing (power supply agreements) and selling their energy”.
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