The Philippines Energy Regulatory Commission (ERC) last week approved the introduction of a feed-in tariff (FIT) that will apply to renewable energy generation sources such as hydro, biomass, wind, and solar.
The approved FiT figures are as follows:
- Hydro — Php 5.90
- Biomass — Php 6.63
- Wind — Php 8.53
- Solar — Php 9.68
According to the ERC:
The ERC arrived at FiTs substantially lower than NREB’s proposed FiTs for wind and solar after it updated the construction costs of the representative plants for these technologies to reflect the downward market trend of the costs of putting up these plants. It also adopted higher capacity factors for these plants to ensure that only the more efficient plants will enjoy the FiT incentive.
The FiT implemented will be subject to review and possible readjustment by the ERC in three years after the FiT is implemented, “or when the installation targets for each technology as set by the Department of Energy shall have already been met.”
“The ERCs lowered FITs will definitely cushion the impact of implementing the FIT incentive mechanism under the RE Act on the electricity rates, while still being sufficient enough to attract new investments in renewable energy,” said ERC Executive Director Francis Saturnino Juan. “This is win-win for all.”