THE Department of Energy (DoE) is soliciting comment on a draft circular that will identify “competitive renewable energy zones” (CREZ) to help it direct the country’s power transmission development to areas where potential indigenous resources are located.
In the draft circular, the DoE will define a CREZ process in which it will identify the renewable energy (RE) zones to help in overcoming development obstacles such as transmission constraints and regulatory barriers to financial investment by the private sector.
“[I]n planning for new transmission infrastructure and/or upgrades to existing transmission infrastructure, the [DoE] deems it necessary to ensure the cost-effective delivery of electricity generated in regions with abundant RE resources in order to attain sustainable, stable, secure, sufficient, accessible, and reasonably-priced electricity supply and services,” the department said in the proposed circular.
The DoE said the ideal candidate areas for CREZ are “geographic areas characterized by high-quality, low-cost RE potential in addition to high levels of private-sector developer interest.”
In the selection process, the department will also identify a set of transmission or upgrade scenarios that will enhance the delivery of energy from the candidate RE zones.
The process will include an analysis of the “economic, operational, environmental, and other costs and benefits associated with the required transmission enhancement scenarios.”
It will also specify the cost-effective transmission line enhancements proposed to be included in the transmission development plan, as reviewed and approved by the DoE.
The DoE said the focus of the CREZ analysis is power interconnections in Luzon, Visayas and Mindanao.
Under the circular, the DoE will create a technical advisory committee, which is chaired by the DoE secretary or a designated representative. Its members include directors of some of the department’s bureaus, along with the heads of the National Renewable Energy Board, National Transmission Corp., National Electrification Administration, and National Grid Corp. of the Philippines. — Victor V. Saulon
