For fossil fuel-based electricity generators, the option proffered for them to comply with the prescribed renewable portfolio standards (RPS) will be to buy carbon credits corresponding to their required carbon footprints reduction.

The proposal is among those fleshed out by the National Renewable Energy Board (NREB). The RE generators could be the one selling the capacity to serve as emissions reduction credits to their counterpart fossil fuel generators.

In that way, those with coal or oil-based plants would no longer need to put up their own RE facilities just to keep up with the prescribed RE capacity.

The NREB is currently working on the RPS rules, which it anticipates for enforcement around January 2013.

The board in its deliberations has been studying the possibility of doubling the country’s RE capacity by 2020; with investment flows seen underpinned by perks set forth under the RE Law.

It was propounded that “2020 will be the target year to double the RE power capacity using 2008 as a base year.”

To ease buying-selling schemes, some players have also taken pitch on the establishment of carbon trading within the Wholesale Electricity Spot Market.

With geothermal and hydro in the equation, the Philippines is listed among the jurisdictions heaving with RE portfolio in its power mix. Those classified as RE resources are wind, solar, biomass, tidal current, geothermal and hydro.

The RPS is a policy component for RE development started by developed countries and widely-enforced in the United States and European countries.

Aside from providing incentives for RE investments, the portfolio standard is also seen as a measure that places obligation on power generators leaning on the so-called “dirty fuels” to go green and help abate the adverse impact of climate change risks.

In the Philippines, advance proposals coming from industry players posit a portfolio standard that shall be set on a per grid basis, instead of doing it on a national scale.

There have been propositions to NREB that the RPS might start at 10-percent and shall be increased at 1.0-percent annually; or whatever percentage that enables the country to meet the targeted doubling of RE capacity within the stretch of a decade.