The Energy Regulatory Commission (ERC) has approved the draft rules for the Distributed Energy Resources (DER), a move that will “democratize” the grid.
DERs are smaller power sources that could be aggregated to provide power necessary to meet regular demand.
“The approved DER Rules aim to encourage development and utilization of DER, promote energy quality, reliability, security, affordability and sustainability.
This is consistent with the policy of the state to accelerate the development of renewable energy (RE) toward reducing the country’s dependence on fossil fuels and minimizing the exposure to price fluctuations in the international markets,” the agency said in a news statement.
Under the adopted DER rules, on-grid or off-grid DER end-users, utilizing RE, with a maximum nameplate capacity of one megawatt, can export a maximum of 30 percent of its excess capacity to the distribution system and be compensated for it.
“The DER Rules democratizes the power grid. This will enable consumers to supplement the power supply coming from large utilities and power producers. Its significance cannot be further emphasized as we seek ways to cushion the impact of rising fuel prices that concommitantly impact upon electricity rates,” ERC Chairperson Monalisa Dimalanta said.
The DER rules include guidelines, interconnection standards, Certificate of Compliance (COC) requirements, pricing methodologies, commercial arrangements governing the sale of energy produced and operations of the DER and payment of subsidies (lifeline subsidy, Senior Citizen Subsidy and other relevant subsidies mandated by law), among others.
The same rules also provides for a carve-out provision that will enable a Distribution Utility to reduce its existing contracted capacity under ERC-approved Power Supply Agreements (PSAs). This will ensure the avoidance of stranded contracted capacities, while at the same time empowering individuals to participate in the energy network, it added. Butch Fernandez