MANILA, Philippines - Trans-Asia Oil and Energy Development Corp., the listed energy firm of the Phinma Group is in talks with the Department of Energy on the final rules of the so-called “feed-in tariff (FIT)†incentives for renewable energy projects.
Trans-Asia president Francisco Viray said the company is asking the Energy department on how the risks can be mitigated under the prevailing FIT allocation rules.
Last month, the DOE said those who will put up the plants first would be given the FIT allocation.
“We in management feel there is a regulatory risk involved so we are now talking to the DOE if the risk can be mitigated or reduced,†Viray said.
He said Trans-Asia is waiting for the final rules on FIT eligibility. “No player or investor has been awarded the FIT eligibility,†Viray said.
Energy Secretary Carlos Jericho Petilla has said the FIT allocation would be given to the first developers who can complete the quota.
“Right now, I need the capacity so FIT allocation will be given to the first developers who can complete the quota. The definition of completion is the first to commence commercial operation,†he said.
The FIT regime is a form of incentives for renewable energy players. Feed-in tariffs offer cost-based compensation to renewable energy players among other perks.
The FIT rate approved by the Energy Regulatory Commission (ERC), the power regulator are as follows: P9.68 per kilowatt-hour for solar; P8.53 per kWh for wind, P6.63 per kWh for biomass and P5.90 per kWh for hydropower projects.
Elizaldy Co., chairman of Filipino-owned renewable energy player Sunwest Water & Electric Co., an affiliate of the Sunwest Group of Companies, also said the new first-come, first-served FIT rules could pose challenges for some players.
He said the DOE should look into companies’ project studies, financing plans and long-term goals as renewable energy firms and not on how fast they can put up their plants.