DOE sets formula for RE’s green energy pricing 0 SHARES Share it! Share TweetBy Myrna M. VelascoThe Department of Energy (DOE) is crafting a formula that will establish the “green energy pricing” for renewable energy (RE) based on reference costs from the Wholesale Electricity Spot Market (WESM). The energy department said the “green energy pricing” will serve as a benchmark pricing that the developers of RE projects could leverage on if they will join the government-administered auction for RE capacity that shall be in line with the Renewable Portfolio Standards (RPS) policy. As prescribed, the green energy price shall be derived based on “initial market values for peak and off-peak baseload power supply on a quarterly basis.”In Luzon and Visayas grids wherein the WESM is already on commercial operations, the benchmark for the green energy price shall be the average of monthly load weighted average prices (LWAPs) in the spot market – and such shall correspond to the baseload and mid-merit/peaking hours. For Mindanao grid that has no operational spot market yet, the propounded green energy price shall be based on “forecast cost recovery rate (in peso per kilowatt-hour) in the most recent feed-in-tariff allowance (FIT-Allowance)” petition as filed by fund administrator National Transmission Corporation.

Source: Manila Bulletin December 07, 2019 14:03 UTC