The Energy Regulatory Commission (ERC) is looking to issue by the end of this month the much-awaited feed-in-tariff (FIT) rates, which will be able to finally move forward all the stalled projects of the local renewable energy sector.
“We’re still on track [of our target issuance]. Give us until the end of the month,” ERC executive director Francis Saturnino Juan told the Inquirer.
“The evaluation is proceeding. We’re validating and updating the inputs and hopefully, we can finish everything in the next two weeks,” he added.
Most of the renewable energy projects are on hold pending the issuance of these rates as these will finally determine whether a particular project is economically feasible and viable. The FIT rates will assure developers of future cash flow since electricity end-users will be charged fixed amounts to cover production of energy from renewable sources.
Potential investments from the stalled projects reportedly stood at about $2.5 billion, or about P107 billion. Of the amount, the bulk, or $891 million, is expected to come from the construction of hydropower facilities that can generate a combined 250 megawatts; $759.75 million from 250 MW of biomass; $170 million from solar; $551.6 million from 200 MW of wind power; and $126 million from 10 MW of ocean power development.
The issuance of FIT has been delayed as the application for the rates was filed before the Energy Regulatory Commission only last year, almost three years after the Renewable Energy Law was passed in 2008. Following the filing in May 2011, a number of groups have also come out to protest the imposition of FIT rates as anticonsumer due to the additional charge to the end-users.
The petition filed last year by the National Renewable Energy Board sought to give solar developers and ocean energy project proponents the highest feed-in-tariff rates of P17.95 a kilowatt-hour and P17.65 a kWh, respectively. Investors in wind development may be given a FIT rate of P10.37 a kWh; for biomass, P7 a kWh; and for hydro, P6.15 a kWh. With these rates, the additional charge under FIT-Allowance is expected to reach 10.50 centavos a kWh.
