November 16, 2013

ERC net metering rules favor the large traditional utility companies? Does not really accept renewable energy?

Savings from oil and coal importation

From Yahoo News: ERC issues net metering rules  | July 8, 2013

 

The ERC has recently issued the rules for net metering of solar energy with the grid.  The rules set the limit at 100 kwh/month, and there are standards relating to:  voltage, frequency,  power quality and system protection.  Only those who are updated in their monthly payments can qualify to participate:  Here is the excerpt (ERC Net Metering Rules

Net metering was created crafted to solve the imbalance of surplus power being produced by PV, while none is produced at night.  A storage, but expensive battery bank can solve the imbalance, but  net metering can be a cheap and viable solution

In a Resolution promulgated on July 1, 2013, the Energy Regulatory Commission (ERC) adopted the Rules Enabling the Net-metering Program for Renewable Energy, including the Net-metering Interconnection Standards (Net-metering Rules).  The Net-metering Rules allow electricity end-users who are updated in the payment of their electric bills to their distribution utility (DU) to engage in distributed generation. They can generate electricity from renewable energy (RE) sources like solar, wind, biomass or such other RE Systems not exceeding 100 kW that can be installed within the end-users’ premises and supply the electricity they generate in excess of what they can consume directly to their DU.  
In a net-metering arrangement, the end-user maintains a two-way connection to the distribution system and is only charged or credited, as the case may be, for the difference between the electricity supplied by the DU (import energy) and the electricity it supplies to the DU during times when it has excess RE generation (export energy), both of which are metered using 2 uni-directional meters, one for import and one for export, or a single bi-directional meter.  Under the Net-metering Rules, pending the development of a different pricing methodology, the net-metering customer’s export energy shall be priced based on its DU’s blended generation cost.  Included in the Net-metering Rules also are the standards, which shall be complied with and observed by the net-metering customer to address engineering, electric system reliability, and safety concerns for net-metering interconnections, such as those concerning voltage level, frequency, and power quality, and those relating to system protection.  
Section 10 of Republic Act No. 9513 or the Renewable Energy Act mandates the ERC, in consultation with the National Renewable Energy Board (NREB), to establish the net-metering interconnection standards and pricing methodology to usher in the implementation of the net-metering for renewable energy program.  NREB developed the draft net-metering rules, which after being subjected to public consultations and after a series of coordination meetings and workshops between the ERC and the NREB Technical Working Groups and the relevant stakeholders, was adopted and approved by the ERC.
“The net-metering program will definitely change the electricity landscape.  From just being recipients of electricity, electricity users may also now become generators, supplying not only their electricity requirements but also that of others through their distribution utilities’ system.  They avoid drawing electricity from the distribution grid equivalent to their own RE generation that they consume, in the process realizing savings in their electricity bills, and get paid a reasonable price for their RE generation that they cannot any more consume. It is a win-win, for the electricity end-user and, more importantly, for the environment because of the additional RE capacity that is shored up by the program,” ERC Chairperson and CEO Zenaida G. Cruz-Ducut explained.



If you read between the lines, this is really nothing at all.  A 3 kWp installation will generate more than 100 kwH month. The safety, quality, voltage frequency and power quality are meant to discourage applicants for net metering.  I could see ERC being effectively controlled by large power companies here, probably as defensive strategy as being used in Hawaii.  In Europe and Australia, and even rest of USA, the power utilities are losing out to rooftop  solar panels.

I was told that the 100 kwh limit is made to prevent system imbalance or a power surge (o my gosh, how many million homes would have solar installations to cause a system imbalance?  This is to protect the financial statement and the bottom lines, I dare say)

We have Renewable  Energy Law, we talk about climate change, we talk about green and clean energy;  what are these people at ERC doing.  We are protecting MERALCO  and other black tech power generating companies.

Why cant people embrace new technology and competition.  As in the past, local companies were protected by high tariff; and now we have protection for net metering for genco and other power distribution companies.

Power companies oppose net metering (from How Stuff works)


                                
                                         

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