THE Philippine Solar Power Alliance (PSPA) said the Department of Energy (DOE) should defer any major decision related to renewable energy (RE) until a new energy secretary is appointed to avoid any “midnight” action.
“The alliance supports and respects the incoming Duterte administration. We are fearful of any midnight decision, which may cause uncertainty on investments especially foreign capital. In the spirit of transparency and consultation, it may be best for the incoming leadership to take an active role in any decision, which may have strategic impact on the industry,” PSPA President Tetchi Cruz-Capellan said.
The DOE has yet to release the list of power providers that are eligible to receive the new P8.69 per kilowatt-hour (kWh) feed-in tarift (FiT) rate in the second round of FiT for solar.
Also, it has yet to decide on the many proposals submitted for approval by the National Renewable Energy Board (NREB), one of which is another round of FIT incentives to developers of solar- and wind-power projects.
“PSPA respects the incoming administration. The incoming energy secretary should be given a chance. Any move by NREB might be deemed ‘midnight action’ and is vulnerable to revision. This is not the way to start a relationship,” Capellan said.
NREB is the body tasked by the Renewable Energy Act of 2008 to recommend policies, rules and standards to govern the implementation of the law, which granted fiscal and nonfiscal incentives to RE projects.
NREB Chairman Pedro H. Maniego Jr. refused to disclose the content of the board’s recommendation, since “the DOE must first evaluate based on the active service contracts and the grid constraints.”
He stressed that NREB’s primary role is “recommendatory” following its mandate in the RE Act of 2008.
When sought for comment, Energy Secretary Zenaida Y.
Monsada said the possibility that there would be a third round of FiT for solar remains in the hands of NREB’s proposal.
“NREB’s proposals should include justifications. The proposal should also zero in on the impact because we, at the DOE, are focus on providing consumers reasonable prices. It is up to the proposal of NREB. Whatever their proposal is, NREB must be able to justify it,” Monsada said.
Meanwhile, the DOE has issued a circular mandating the modified Philippine National Standard (PNS) specification for biofuels-coconut methyl ester (PNS/DOE QS 002:2015).
Department Circular 2016-0006 states that only coconut methyl ester (CME) conforming to PNS/DOE QS 002:2015 shall be manufactured, sold, offered for sale, dispensed or introduced into commerce in the Philippines.
“In order to protect against adulterated or off-specification products, it shall be the responsibility of the CME supplier to ensure that all CME deliveries are accompanied by a Certificate of Quality to be issued by same, indicating the properties of the delivered CME, which should be in compliance with the PNS,” the circular stated.
The circular was signed by Monsada on May 2, and was made public over the weekend.
When sought for comment, DOE Director for Oil Industry Management Bureau Melita Obillo said the circular merely mandates the implementation of the standard for pure CME. “Even if we have the PNS and yet not issue a circular then the implementation of these standards isn’t mandatory.”
The DOE official added that with the newly issued circular, all manufacturers of CME are obliged to abide by the product specifications, including the method of testing.
Republic Act 9367, or the Biofuels Act of 2006, mandates the use of biofuels to reduce dependence on imported fuels with due regard to the protection of public health, the environment and natural ecosystems consistent with the country’s sustainable economic growth that would expand opportunities for livelihood.
Further, the circular states, the quality of biodiesel in the form of CME was standardized to ensure its effectiveness when used either in its pure state or as a blend based on local conditions.
CME is derived from coconut oil and is more appropriately known as coco-biodiesel. Studies show that the addition of coco-biodiesel results in better combustion, less pollution and more engine power; the engines run smoothly and with longer maintenance intervals.
Oil firms are required by law to blend 10 percent ethanol for gasoline and 2 percent CME to create biodiesel.