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ERC PUSHES FOR CLEAN ENERGY SHIFT

Energy Regulatory Commission (ERC) Chairperson and CEO Atty. Francis Saturnino Juan joined global and local energy leaders in a high-level forum entitled “The Role of the Law in Accelerating the Energy Transition in the Philippines,” organized by ClientEarth at the Makati Shangri-La, where he underscored the critical role of laws and regulations in enabling a sustainable, reliable, and inclusive power sector.

During the panel discussion, Juan emphasized that the Philippines’ policy direction is firmly anchored in the Electric Power Industry Reform Act (EPIRA), particularly its mandate to reduce dependence on imported fuels and promote the use of indigenous and renewable energy resources. 

The ERC chief noted that this policy foundation has been strengthened by subsequent legislation, including the Renewable Energy Act, which introduced key mechanisms such as the Feed-in Tariff (FIT) system, Renewable Portfolio Standards (RPS), Net Metering, and Green Energy Option Program (GEOP).

“The ERC is moving to lower the threshold for Retail Competition and Open Access to 100kW, expanding opportunities for consumers to choose their suppliers such as those providing 100% renewable energy.”

When asked how the ERC is helping the country achieve its target of 35% renewable energy share in the generation mix by 2030, he highlighted several initiatives. These include the adoption of the FIT system for emerging renewable technologies, which laid the groundwork for the Department of Energy’s (DOE) Green Energy Auction (GEA) program, enabling broader participation of renewable energy sources such as onshore and offshore wind and biomass. Juan also cited the Commission’s timely setting of GEA reserve prices, efforts to reduce regulatory backlogs—particularly in National Grid Corporation of the Philippines (NGCP) capital expenditure applications to ensure a reliable and more flexible grid—and the streamlining of processes for faster approval of Power Supply Agreements (PSAs). In addition, he noted the ERC’s move to lower the threshold for Retail Competition and Open Access to 100kW, expanding opportunities for consumers to choose their suppliers such as those providing 100% renewable energy.

“The government is extending an effort to increase the use of electric vehicles (EV) to reduce dependence on petroleum products, which is more crucial in today’s setting in view of the existing Middle East crisis disrupting supply.”  

Senator Win Gatchalian noted other policies furthering the growth of RE and supporting the country’s transition to clean energy. Gatchalian highlighted the government’s effort to increase the use of electric vehicles (EV) to reduce dependence on petroleum products, which is more crucial in today’s setting in view of the existing Middle East crisis disrupting supply.  Part of said effort is the grant of non-fiscal incentives to EV users such as exemption to the number coding scheme, designating priority parking spaces for EVs, and expanding the number of available charging stations/infrastructure in buildings and other public spaces.

Meanwhile, ACEN President and CEO Eric Francia cautioned against treating price regulation as business as usual, noting that artificially capping Wholesale Electricity Spot Market (WESM) prices during extraordinary circumstances could distort market signals and discourage investment. Francia highlighted that local firms often reinvest earnings into renewable energy development, emphasizing the need for the government to adopt a balanced and nuanced approach during periods of volatility.

Panelists also noted emerging challenges, including balancing distributed renewable energy growth with the sustainability of distribution utilities, addressing land use constraints, and protecting indigenous peoples’ rights.

Juan underscored the ERC’s commitment to adaptive, forward-looking regulation that fosters innovation while ensuring fairness, reliability, and consumer protection throughout the Philippines’ energy transition.

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