The Energy Regulatory Commission (ERC) has clarified its stance on approving power supply contracts, stating that it does not favor any specific energy technology.
According to ERC Chairman and Chief Executive Officer Francis Saturnino C. Juan, the commission's decisions are based on selecting the least-cost option, particularly for contracts procured through a competitive selection process.
Mr. Juan was responding to concerns that the ERC was leaning towards renewable energy (RE) over other power generation technologies, following the approval of higher ceiling prices in green energy auctions (GEA).
The ERC has set the green energy auction reserve (GEAR) price at P9.30 per kilowatt-hour (kWh) for waste-to-energy projects and P11 per kWh for offshore wind projects for the two anticipated auctions this year.
The resulting costs may be recovered from on-grid consumers through the GEA allowance, reflected as a separate line item in electricity bills.
The ERC maintains that all types of power projects, including coal, natural gas, and potential nuclear facilities, are subject to the same regulatory process of obtaining permits and approvals.
Mr. Juan noted that reducing dependence on imported fuel is a key mandate of the Electric Power Industry Reform Act of 2001 and Renewable Energy Act of 2008.
He highlighted the benefits of increasing renewable energy utilization, citing the example of solar rooftops helping to mitigate the impact of the recent crisis by reducing demand on the market.
The Philippines aims to increase the share of renewable energy in the national power mix from 25% currently to 35% by 2030 and 50% by 2040, in a bid to reduce exposure to volatile global prices and carbon emissions.
