Regulatory updates and insights on the Philippines’ rules to procure power supply agreements

18 July 2024 – ClientEarth participated in a forum organised by the Philippine Energy Regulatory Commission (ERC) entitled “Regulatory updates and insights on Philippine power supply agreements (PSAs) and competitive selection process (CSP)”. Various energy policy experts and representatives from government agencies, distribution utilities (DUs), and power producers and developers associations attended the forum.

Tim Guanzon, a lawyer from ClientEarth’s Energy Systems, Asia team presented a draft legal toolkit that ClientEarth and the ERC are developing to improve competitive bidding process for PSAs. This toolkit aims to provide a comprehensive and accessible guide on how to conduct a CSP and seeks to ensure a common understanding between the regulator and DUs on the rules governing the CSP.

Aurora Energy Research (Aurora), presented their recent study, “Insights into Philippine PSAs.” Aurora's analysis projects that the Philippines will undergo a significant transformation towards renewable energy dominance by 2050, with over 60% of its electricity sourced from renewables. Solar will be the main technology driving this transition, with an increase in onshore and offshore wind capacity also expected.

TransitionZero, also presented a study analysing PSAs of two private DUs and two electric cooperatives (ECs) to determine whether a policy revision in 2023 intended to improve the rules for PSA procurement was effective. The assessment found that PSAs obtained through a CSP significantly reduced non-performance issues compared to those signed without a CSP.

The forum included representatives from the Department of Energy (DOE), National Electrification Administration (NEA), Philippine Competition Commission (PCC), Manila Electric Company (MERALCO), Philippine Electric Plant Owners Association (PEPOA), Philippine Independent Power Producers Association (PIPPA), Philippine Rural Electric Cooperatives Association (PHILRECA), Developers of Renewable Energy for Advancement Inc. (DREAM), San Miguel Global Power (SMGP), Center for Energy, Ecology, and Development (CEED), Confederation of Solar Developers of the Philippines (CSDP), Philippine Federation of Electric Cooperatives (PHILFECO), and Pangasinan III Electric Cooperative (PANELCO III).

Watch the forum here.