Preferential dispatch to be given to geothermal, other renewables in the Philippines
Power lines, Manila, Philippines (source: Patty Lagera / flickr, Creative Commons)
Carlo Cariaga
7 Oct 2022
The Department of Energy of the Philippines has granted preferential dispatch status to geothermal and other renewables in the country's wholesale electricity spot market.
The Department of Energy (DOE) in the Philippines has announced that geothermal, hydroelectric, and biomass power plants will be designated as preferred dispatchers of power on the wholesale electricity spot market (WESM). The WESM is the market for power sold at a premium and that has not been committed to long-term supply contracts.
The DOE has released a circular that authorizes the WESM, the system operators, and distribution utilities to revise the WESM rules and manuals to reflect the changes to the identification of preferential dispatch generating units.
Previously, only intermittent renewable energy sources such as wind, solar, run-of-river hydro or ocean energy were classified as “must dispatch” generating units. “Granting all generating units utilizing RE resources either ‘must dispatch’ or ‘priority dispatch’ (status) will aid in accelerating the development and utilization of indigenous RE resources and reduce the dependence on imported conventional energy sources,” said Energy Secretary Raphael Lotilla.
Furthermore, granting preferential dispatch to the three types of renewable plants will encourage investment “because of guaranteed dispatch to the grid at full available capacities under merchant pricing, allowing recover of investment,” added Lotilla.
The Philippines has been identified as an “outperformer” in the geothermal sector by Fitch Solutions, citing its significant capacity base and growth expectations. The Philippines currently has the 3rd highest geothermal installed capacity in the world.
Source: Business World
