THE Energy Regulatory Commission (ERC) has issued an initial draft of licensing rules for “distributed energy resources” or small power sources whose output can be lumped together to meet regular power demand.
Its draft rules, which are up for public comment, also covered regulation for microgrids, or a group of interconnected loads and distributed energy resources with clearly defined boundaries.
They act as a single controllable grid and can connect and disconnect from the national grid to enable it to operate in both grid-connected or island mode.
ERC Commissioner Alfredo J. Non said the commission saw the need to develop the licensing rules “in view of the emergence of variable renewable energy resources and facilitate the entry of distributed energy resources into the transmission and distribution systems.”
“Thus, it is necessary to create an additional category of license,” said Mr. Non in a statement.
The licensing rules will cover distributed generation companies or those that will provide distributed energy resources, he added. Mr. Non is commission’s designated officer-in-charge after its chairman’s preventive suspension.
The ERC is seeking comment from electric power industry participants and stakeholders until July 4, 2017 before holding a public consultation on July 17 at the ERC main office in Pasig City.
Distributed energy resources, which can be aggregated to provide power, also refers to demand- and supply-side resources that can be deployed throughout the system of an electric utility.
They can meet the energy and reliability needs of the customers served by the system, including, renewable energy facilities, managed loads and energy storage. For managed loads, they can also be used to charge electric vehicles.
These resources can also be used for other measures necessary to incorporate renewable generation resources, including load management and ancillary services.
The commission said the proposed licensing rules cover generation companies that own or operate a distributed energy resource that is installed in the premises of, and directly connected to the load side of an end-user with no interconnection to the transmission or distribution system.
Generation companies with a distributed energy resource installed in the premises of, and directly connected to the load side of an end-user with an existing interconnection to the transmission or distribution system are also included.
Also covered are microgrids or a localized grouping of distributed energy sources, loads and storage mechanism that can operate as part of the central grid or independently as an island.
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