THE former chairman of the National Renewable Energy Board (NREB) will front an organization unifying the industry associations of renewable energy developers.
Jose M. Layug, Jr., former chairman of NREB, told reporters the various groups of solar developers are backing the creation of the single entity, although he has yet to obtain the formal support of geothermal developers, who are in the process of choosing their officers. Wind power developers have also been invited to join.
“There are so many issues,” he said, citing a number of pending regulations that are supposed to promote the greater use of renewable energy.
Aside from the delayed issuance of the regulations, the most pressing issue facing renewable energy at this time is the Energy department’s decision to disallow the “Swiss challenge” process for electric cooperatives to procure their power capacity requirements.
Under previous practice, a renewable energy developer can submit a proposal to supply power to an electric cooperative, which in turn publishes the offer to attract price challengers. The original proponent has the right to match the challenger’s price offer.
The Department of Energy (DoE) earlier said that its directive was meant to provide clarity as several government agencies have been coming out with their own draft rules on competitive selection processes (CSP).
These agencies include the National Electrification Administration (NEA), which oversees the cooperatives, and the Energy Regulatory Commission (ERC). Congress also has a pending CSP bill.
“If you look at the CSP rules… Swiss challenge has not been ruled out,” Mr. Layug said. “I don’t understand why are you preventing an original proponent [the right to match].”
He said the ERC, on the other hand, has ruled that Swiss challenges are allowed. He said if the DoE’s preference for competitive bidding is followed instead of a Swiss challenge, the process would be time-consuming.
“The ERC in past decisions had allowed Swiss challenge,” he said. “And the Supreme Court recognizes Swiss challenge as a form of public bidding.”
He said if renewable energy developers are not allowed to offer their capacity through a Swiss challenge, they will be at a disadvantage when competing with coal power plants in competitive bids. — Victor V. Saulon
