MANILA, Philippines - The Energy Regulatory Commission (ERC), the power regulator, has approved the disbursement and collection guidelines for the so-called Feed-in-Tariff (FIT) system, a move seen to support the renewable energy sector.
The National Renewable Energy Board (NREB) said the guidelines, approved in December, along with efforts of the Department of Energy, would encourage players to build more solar, wind, biomass and run-of-river hydro power plants.
“The RE industry congratulates both the ERC and the DOE for their continued efforts to bring much needed clean generating capacity to the grid.
Additional RE capacity not only stabilizes power rates but will also provide jobs in mostly rural areas. It will also contribute to a cleaner and healthier environment for all,†NREB chairman Pete Maniego said.
To date, under the Energy department’s “first come, first served†FIT policy, roughly 320 MW of much needed generation capacity will be added to the grid, according to Maniego.
Once completed, these power plants will provide much needed capacity that will help stabilize power prices at the Wholesale Electricity Spot Market (WESM), the country’s trading floor for electricity.
According to NREB, the FIT policy has attracted over $800 million in direct investments and aided rural economies by creating over 3,500 construction jobs across the Philippines.
The government has been encouraging players in the renewable energy sector through FIT.
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.
The Energy department has been pushing for a robust and diverse power supply mix including renewable energy sources to help ensure the country’s power needs.