Energy Secretary Jose Rene D. Almendras said he preferred to pace the development of the more expensive renewable energy technologies so as not to burden consumers with higher charges.
The remark was made after Senator Sergio Osmeña III urged the government to exercise caution in implementing high feed-in-tariff (FIT) rates and in setting installation targets for solar power in particular to ensure that electricity rates would not rise substantially.
“We are not pushing any particular renewable energy technology. Even I have warned solar developers that if I had my way, I would like to pace the more expensive technologies,” Almendras said in an interview.
Based on the petition submitted by the National Renewable Energy Board to the Energy Regulatory Commission, solar developers and ocean energy project proponents would enjoy the highest FIT rates of P17.95 per kilowatt-hour and P17.65 per kWh, respectively. Investors in wind development will be given a FIT rate of P10.37 per kWh; biomass, P7 per kWh, and hydro, P6.15 per kWh.
Based on these FIT rates, the estimated additional universal levy (also called FIT-allowance) to be charged on all power consumers connected to the grid will be 12.57 centavos per kWh—that is if developers are able to meet the installation targets and if the P4.50 per kWh average generation cost will not balloon over the next three years due to higher fuel prices.
Over the next three years, developers will be allowed to put up facilities that can generate a total of 830 megawatts, representing the so-called installation target.
Of the total capacity, the hydro and biomass sectors will be allowed to put up facilities that can generate a total of 500 MW or 250 MW each; wind, 220 MW; solar 100 MW; and ocean, 10 MW.
In a separate interview, Energy Undersecretary Jose M. Layug Jr. clarified that the installation target for solar, as well as for all the renewable energy sources covered by the petition, was not yet final.
“Senator Osmeña has seen the preliminary 100 MW installation target for solar at NREB FIT petition. Hence, he reacted that it was too high. The target is only preliminary and we are currently reviewing it,” Layug said.
