THE Department of Energy (DoE) has directed the National Electrification Administration (NEA) to facilitate joint bidding to help electric cooperatives (ECs) comply with the requirements of the renewable portfolio standards (RPS) program.
“The joint conduct of a CSP to meet the RPS requirements of ECs serves the purpose of matching available and potential RE supply with demand and providing ample leverage to ECs in terms of price by consolidating EC demand and securing a uniform rate,” the DoE said in a department order dated June 11.
The RPS, a key component of the Renewable Energy Act of 2008, aims to encourage increased use of renewable energy sources.
Under the program, electric power industry participants — including ECs, distribution utilities, and retail electricity suppliers — are required to source a portion of their energy supply from eligible renewable energy resources.
Starting 2023, on-grid power suppliers were directed to increase the share of renewables in their energy mix to 2.52% from 1% previously.
NEA, which is mandated to supervise the management and operations of all ECs, has been tasked with issuing the rules, guidelines, and terms and conditions for conducting a joint competitive selection process (CSP).
The CSP mechanism requires power distributors to procure the least-cost electricity supply through competitive bidding.
“The NEA shall facilitate the timely execution of the power supply contracts between the concerned ECs and the generation companies operating RPS-eligible facilities,” the DoE said.
The agency also instructed NEA to require all relevant ECs to update their power supply procurement plans based on their RPS requirements and compliance plans to determine shortfall volumes.
In addition to the guidelines, NEA must also draft the terms of reference and other bidding documents aligned with the RPS compliance plans of ECs.
“The NEA shall monitor and supervise the compliance of the ECs with their responsibilities and obligations under the joint CSP,” the department said. — Sheldeen Joy Talavera
