RE firms may have to wait a little longer
Local renewable energy developers will again have to bide their time as the final feed-in-tariff rates—a much-awaited incentive for investors—may not be issued within the prescribed period.
The rates are supposed to be issued 90 days from May 16, when the applications for the approval of these rates were filed before the Energy Regulatory Commission.
ERC executive director Francis Saturnino Juan explained that the commission would still need the final numbers for the installation target, which they expect the Department of Energy to submit by the end of this month.
The installation targets represented the total capacity of renewable energy facilities that will be allowed to be constructed within a three-year period.
As of the filing last May 16, the government has allowed an installation target of 830 megawatts, to be divided among different energy resources such as wind, solar, ocean, hydro and biomass.
The final installation target is expected to be based on a technical study being conducted by the National Grid Corp. of the Philippines, the private operator of the national transmission network.
Juan said that once all the necessary data have been submitted, the ERC would strive to complete the processing of applications for feed-in-tariff (FIT) rates within the 90-day period.
FIT rates are meant to assure renewable energy developers of future cash flow as electricity end-users will be charged fixed amounts to cover the production of energy from renewable sources. With these rates in place, utilities can spread the cost of clean power among their customers.
