The Philippine Solar Power Alliance (PSPA) has formally announced to the Energy Regulatory Commission (ERC) that it is filing a lower feed-in-tariff (FIT) charge of P15.22 per kilowatt-hour (kWh) for solar power development projects.
It will be a reduction of P2.73 per kWh from the original filing of P17.95 as integrated in the application lodged by the National Renewable Energy Board (NREB) in May last year.
Additionally, the solar developers’ group indicated in the same petition “a further reduction to P14.59 per kWh if there’s further 10 percent drop in panel prices.”
Nevertheless, the FIT charges being sought by the group are still higher than the P10 to P12 per kWh earlier verbalized by Senator Sergio Osmeña III, also the co-chair of the oversight Joint Congressional Power Commission.
Even the proposed lower solar FIT rate is still roughly double the P7 per kWh equivalent approved by China for its renewable energy market.
The decision of the PSPA to trim its FIT calculation has been hinged on latest developments owing to the collapse of the solar market globally, triggering the plummet in the cost of solar panels.
The turn of events pushed many markets worldwide to either drastically cut their FITs for solar; while some are already opting to walk away from subsidy-underpinned solar technology developments; and given forecasts also that the technology is already nearing grid parity.
The currently-permitted solar installation which would be able to avail of the FIT charge had been recommended by the Department of Energy (DoE) at 50 megawatts.
Energy Secretary Rene D. Almendras explained that the approved solar installation has been based on the power grid’s absorptive capacity and other technical considerations to ensure that the integration of the technology will not cause ‘stress’ in the system. Secondary to that would be the cost impact on consumers.
The energy chief noted that the installation may go up in the coming years as the technology matures and the costs thrive more affordable to consumers.
