More wind power firms to benefit from new FIT mechanism

MANILA, Philippines - More wind power firms are seen to benefit from new wind energy projects that will be allowed through the feed-in tariff (FIT) mechanism, Energy Undersecretary Jose Layug Jr. said.

The Department of Energy (DOE) is looking to reallocate as much as 90 megawatts (MW) in generating capacity as numerous firms have expressed interest to put up wind power projects.

“We will study if reallocation is possible,” said Layug.

The National Renewable Energy Board has proposed 90 MW in additional allocation for wind projects.

Last year, the DOE approved an installation target of 760 MW for renewable energy projects.

Such projects benefit from FIT, which guarantees investments of renewable energy firms through fixed rates that would be shouldered by consumers over 20 years.

Layug said that so far, there are 25 indicative hydropower projects with a combined capacity of 118 MW, five biomass projects totaling around 50 MW, seven wind projects totaling 374 MW, 13 solar projects totaling 225 MW and one ocean project totaling 10 MW.

The DOE-approved installation target is composed of 250 MW each for hydroelectricity and biomass, 200 MW for wind power, 50 MW for solar energy and 10 MW for ocean technology.

Layug said the DOE is looking at transferring some of the allocated capacity to wind power projects.

But the DOE will make sure that the fixed rates that will be shouldered by consumers will still be within the two- to five-centavo per kilowatt-hour range, Layug said.

Layug said the DOE is encouraging renewable energy projects, which are seen as cheaper compared with power generation through coal and diesel in the long term.

To date, the Philippines sources 35 percent its total power requirements from renewable energy sources.

“We are hopeful with the submissions [for renewable energy projects]. We can endorse and explain to the new secretary the FIT-eligible projects,” Layug said.