Renewable energy investors called to submit applications

Rappler.com
Under the feed-in tariff eligibility, the country expects to boost investment in promising, yet still expensive renewable energy

RENEWABLE ENERGY. President Benigno Aquino III inaugurates the San Carlos solar energy power plant in May. File photo by Malacanang Photo Bureau

MANILA, Philippines – The Department of Energy (DOE) encourages renewable energy investors to submit applications for feed-in tariff (FIT) eligibility.

FIT is designed to accelerate investment in renewable energy technologies. Long-term contracts are offered to renewable energy producers, usually based on the cost of generation of each technology.

FIT is aligned with the government’s commitment to accelerate the exploration, development, and optimal use of the country’s renewable energy sources.

On May 15, the San Carlos Solar Energy, Inc. (SACASOL) in San Carlos City, Negros Occidental was inaugurated. SACASOL is hailed as the first large-scale, government-commissioned, and commercially-financed solar power plant in the country under the Aquino administration.

“Because of this new project, the Visayas grid will benefit from an additional 22-megawatt (MW) – all while SACASOL displaces carbon emissions equivalent to the emissions produced by 14,805 tons of oil for each year of operations,” President Benigno “Noynoy” Aquino III said during the inauguration.

SACASOL has been issued by DOE with a certificate of endorsement (COE) for FIT eligibility for transparency.

While SACASOL is a much-needed development, the Aquino administration acknowledges the limitations of renewable energy, which remains expensive.

Thus the race for FIT allocation entitlement is going on. The installation targets of run of river hydro is 250 MW; biomass, 250 MW; wind, 200 MW; and ocean, 10 MW, the agency said Friday, June 13.

The Energy Regulatory Commission (ERC)-approved FIT rates for renewable technology include: the run of the river hydro (P5.90 per kilowatt hour [kw/h]); biomass (P6.63 per kw/h); wind (P 8.53 per kw/h); and solar (P9.68 per kw/h).

Under DOE Circular DC2013-05-0009, only renewable energy developers with valid and subsisting renewable energy service/operating contracts (RESC) can apply for eligibility and inclusion of their renewable energy projects.

Under the FIT system, renewable energy developers are required to submit a document declaring a project’s commercial feasibility and work plan.

Complying renewable energy projects will be issued with confirmation of commerciality, which also serves as a notice to proceed to the construction phase.

The DOE will monitor the status of the construction phase of the project and will conduct site validation for the approved work plan. DOE will issue a COE for FIT eligibility to ERC on a first-come-first-served basis, only upon confirmation of the successful commissioning of the project.

DOE also put up a monitoring board on its website to show status of FIT eligibility implementation and other important updates concerning the matter. – Rappler.com

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