IEMOP expects rooftop solar bill to reduce power rate, grid demand

A consumers’ group in Palawan is petitioning the National Electrification Administration to take control over the management of the Palawan Electric Cooperative to address power outages and soaring electricity costs. Seen in this undated photo are power linemen conducting maintenance operations. (PNA photo by Joan Bondoc)

The Independent Electricity Market Operator of the Philippines (IEMOP) expects the proposed Sariling Kuryente Act to lower power costs by unlocking the potential of rooftop solar projects to reduce grid demand.

IEMOP vice-president for trading operations Isidro Cacho Jr. said the bill would directly affect distribution utilities and the Wholesale Electricity Spot Market.

“The direct impact of that, of course, is on our DUs. That also has an impact on the market,” Cacho said.

“That means that instead of the demand in the market being greater, it will be smaller, offset by our distributed energy resources. So it will no longer be visible in the market,” he said.

Cacho said lower market demand mirrors the impact on utilities.

“Ultimately, in the market, you will see that demand will be lower.  If demand is low, our supply margin will be higher, which could result in more competitive prices,” he said.

Even without the bill, many consumers are installing rooftop solar systems with 5- to 10-kilowatt capacities, Cacho said. He said  IEMOP can quantify the impact of solar at the grid level, noting that prices drop to as low as P2 per kilowatt-hour. Rooftop solar would need to generate roughly 10 megawatts to significantly move the market, he added.

House Majority Leader Ferdinand Alexander Marcos III of Ilocos Norte and Senior Deputy Speaker Faustino Dy III filed House Bill 10431 to remove barriers to rooftop solar panels, battery storage and similar behind-the-meter energy systems.

The measure would amend the Electric Power Industry Reform Act of 2001 to distinguish electricity generated for personal consumption from commercial power. An end user operating a behind-the-meter system solely for personal use would not be classified as a generation company.

Systems using Energy Regulatory Commission-certified equipment to prevent electricity from flowing into the distribution grid would no longer require a certificate of compliance or prior ERC authorization.

Distribution utilities would also be prohibited from requiring prior approval, agreements, technical studies, meter replacements or extra charges for qualified non-exporting systems, with owners only needing to notify their utility once installation is complete.

Systems capable of exporting electricity to the grid would remain subject to interconnection rules, but utilities would have to act on complete applications within 10 working days, with applications not decided within that period deemed approved.

The Department of Energy would be directed to promote behind-the-meter systems, eliminate administrative barriers and improve access to financing, qualified installers and reliable equipment.

Homeowners associations, subdivision developers and property managers could not prohibit installations on property owned or controlled by end users, except for reasonable conditions involving structural and public safety. — Alena Mae S. Flores