By edict, all power suppliers in the country will eventually need to set up their own renewable energy (RE) projects to comply with the proposed Renewable Portfolio Standard (RPS) sanctioned by law.

Based on documents detailing discussions of the National Renewable Energy Board (NREB), it was indicated that the entities covered by the RPS will be “all electricity suppliers.”

The proposal is to firm up the RE policy framework by June 12, 2010 and the compliance year for the RPS shall be set January 30, 2013, which will be three (3) years after the effectivity of the Renewable Energy Law.

It is not clear yet what would be the required RPS percentage per power generator or supplier, but the general stipulation initially set forth by the NREB would be “to increase RE capacity by 100-percent in 10 years or to double RE capacity by 2020.”

The basis of computing the RPS will be the gigawatt hour (GWh) generation of electricity suppliers, and the initial coverage will only be for the main grid. “For the off-grid areas, RPS mechanism to follow,” NREB proposed. The Board already met six times, one of which is a special meeting with Energy Secretary Angelo T. Reyes.

Preliminary discussions at NREB also set forth proposals that “existing geothermal and large hydropower sources must secure vintage waiver from the ERC (Energy Regulatory Commission).” It was added that “for hybrid sources, RE generation portion must be identified and measured.”

Media reports are being swamped with purported interests on RE investments, but the reality is, the existing and even new entrants are actually mandated by law to contribute to the country’s RE capacity.

The existing players in the industry are now just awaiting policy pronouncements from the NREB on the mandated RPS before planning their RE capacities that will be added into their power generation portfolio.

The RPS mandate on all power generators is seen as the only effective way to ensure that the propoundeddoubling of the country’s RE capacity be met in the next 10 years.

Several companies have already advanced announcements on their proposed RE investments way ahead of the RPS formulation.

Even the de-monopolized National Power Corporation (NPC) is heading toward the ‘‘RE revolution’’ as it shifts focus from big-ticket power generation to providing electricity for small power utilities mainly in off-grid areas.

NPC president Froilan Tampinco has been trumpeting entry of prospective partners for RE projects, naming Korea Electric Power Corporation, Philippine National Oil Company-Renewables Corporation, Sta. Clara Power Corporation, Pamatec and Clenergen, among others.

While policy crafting is ongoing, excitement at RE investment sphere is getting stirred up by the attractive investment perks prescribed by the RE Law.