REINER ALLGEIER: Patience of potential investors wearing off. PHOTO/seaoil.com.ph
A number of German companies are keen on investing in the local solar power sector, but concrete plans have yet to be made pending the issuance of feed-in tariff (FIT) rates for renewable energy projects.
In an interview Wednesday, German-Philippine Chamber of Commerce and Industry Inc. president Reiner Allgeier said every moment of delay in the issuance of the FIT rates has weighed heavily on the patience of potential investors.
“They are interested, yes, but are they investing? No. Every delay is bad, and the [issuance of the] FIT rates has been delayed several times. It’s not good at all. It’s counterproductive,” Allgeier said.
“Of course, everybody is still waiting and they are willing to wait, but they are not going to wait for very long. If the delays continue, they may just go to Indonesia, Thailand and Malaysia, which are also aggressively pursuing solar power,” Allgeier added.
In an earlier interview, Energy Regulatory Commission executive director Francis Saturnino Juan said the rates would likely not be issued within the prescribed period, or within 90 days from May 16.
Under the FIT scheme, renewable energy developers who will choose to be covered by the system will get a fixed return for the power that they will generate, via the FIT allowance, a universal levy that all power users will have to bear.