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Philippine Solar Power Developers Call For Extension Of Incentives

Prospective solar power project developers in the Philippines have again called upon the government to increase the capacity eligible for higher feed-in tariffs.

The Philippine Solar Power Alliance has urged the government to increase the capacity eligible for higher feed-in tariff from 500 MW to 2 GW.

The recommendation comes following the government’s announcement to increase renewable energy capacity addition targets. The government initially offered a higher target of P9.68/kWh (US¢21.41/kWh) for just 50 MW solar power capacity, though the cap was subsequently increased to 500 MW. Developers now want a second revision to the cap.

As the 500 MW cap has been achieved, the project developers are now eligible for a revised tariff of P8.69/kWh (US¢19.22/kWh). These tariffs will be applicable for a period of 20 years.

The Energy Regulatory Commission (ERC) has also revised the original cap for wind energy sector from 200 MW to 400 MW. The original tariff offered to wind energy project developers was P8.53/kWh (US¢18.87/kWh) which is proposed to be revised to P7.93/kWh (US¢17.54/kWh).

The ERC set a cap of 250 MW each for hydro power and biomass power projects. For hydro power projects the current tariff is P5.90/kWh (US¢13.05/kWh) while for biomass power projects the tariff is P6.63/kWh (US¢14.67/kWh).

The feed-in tariff regime implemented by the Philippine government has attracted significant investment from the private sector, not only within the country but also from foreign investors. Real estate developer Gregorio Araneta recently announced that it will set up a 100 MW solar PV power plant in the Philippines after the successful implementation of a 30 MW project. Similarly, First Solar signed an agreement with OrionGroup to set up a joint venture company, FSO Energy Solutions, which will set up large-scale solar power projects to cater to the power demand of commercial and industrial entities.

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Written By

Smiti works as a senior solar engineer at a reputed engineering and management consultancy. She has conducted due diligence of several solar PV projects in India and Southeast Asia. She has keen interest in renewable energy, green buildings, environmental sustainability, and biofuels. She currently resides in New Delhi, India.


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