The Department of Energy (DOE) said all qualified and registered generating units utilizing renewable energy (RE) sources can now enjoy the option of preferential dispatch in the Wholesale Electricity Spot Market (WESM) ).
In a statement yesterday, the DOE said Department Circular (DC) No. 2022-10-0031 signed by Secretary Raphael Lotilla on Wednesday provides that both must dispatch and priority dispatch in the current bidding order in the WESM can avail for preferential dispatch.
Qualified and registered intermittent RE-based plants, whether or not under the feed-in-tariff (FIT) system such as wind, solar, run-of-river hydro or ocean energy are considered must dispatch in the WESM, according to the preference in the dispatch schedule whenever generation is available.
Biomass plants under FIT are considered priority dispatch under the WESM preference dispatch.
Lotilla said granting all generating units utilizing RE resources either must dispatch or priority dispatch will help accelerate the development and utilization of indigenous RE resources and reduce the dependence on imported conventional energy sources.
The DOE added it will minimize the country’s exposure to price fluctuations in the global market, making the supply and delivery of electric power more stable and secured from international geopolitical conflicts.
“Giving preferential dispatch to RE-generating plants will also encourage investments for additional capacities in geothermal, biomass or impounding hydroelectric power plants because of guaranteed dispatch in the grid at their full available capacities under merchant pricing, allowing recovery of investments,” Lotilla said. – Jed Macapagal
