DOE considers entry of more solar plants

The Department of Energy (DOE) is looking to expand the solar power allocation under the Feed-in-Tariff scheme to 500 megawatts from the current 50 megawatts.

Energy Secretary Carlos Jericho Petilla said in a briefing Monday that ensuring adequate power during summer, when demand is at its highest, is a challenge. Petilla said while there were new plants supposed to be under development, such as the $600-million, 414-MW San Gabriel combined cycle natural gas-fired power plant in Sta. Rita, Batangas City, “I cannot leave that to chance.”

Hence, the DOE is considering allowing more solar power development with guaranteed power rates to boost supply during summer, when electricity reserves are often tight, Petilla said.

“The profile of solar really fits summer. We have the highest [production] in summer and in terms of pricing it actually works,” Petilla said, adding he hoped the allocation can be amended within the year following certification from the National Renewable Energy Board (NREB) that the current allocation of 50 MW is not enough.

The Energy Regulatory Commission (ERC) needs to approve the proposed additional allocation and it has asked for NREB’s endorsement.

As for the price impact, Petilla said NREB had conducted a study and found that the pass-on impact for an additional 450-MW under FIT is just up to P0.04 per kWh. “It can be zero. It can be negative, even, during summer,” Petilla said, referring to the high solar power production and very expensive power spot market costs during the summer season.

The DOE’s FIT allocation for solar power is only 50 MW but so far 80 MW of capacity have been committed by various players.

“It’s a race on whoever finishes registered projects first,” DOE director for renewable energy Mario C. Marasigan said. He was referring to the oversubscription in solar energy projects under FIT, which guarantees rates to be paid to developer-generators, and the DOE’s first-come, first-served policy on FIT allocation.