by Myrna Velasco April 5, 2016
In view of the anticipated award of
new feed-in-tariff (FIT) incentives to solar projects, the Energy Regulatory
Commission (ERC) has clarified rules on its issuance of certificates of
compliance (COCs) that will set the go-signal of solar facilities’ commercial
operations.
In a resolution, the regulatory body
noted that for the FIT-incentivized solar plants, it will be issuing a COC “in
favor of a generation company for its FIT-eligible RE power plant which has
been previously issued a Certificate of Endorsement by the DOE indicating the
full commissioning and status of commerciality within the installation target
and before the 15 March 2016 deadline.”
The ERC added that for those not
included in the capped installation for FIT and had completions beyond the
March 15, 2016 deadline, “only a regular COC shall be issued for any generation
company.”
The Commission further qualified
that “any subsequent entitlement to the FIT rate shall be subject to the
rule-making process of the ERC and for the determination of the appropriate FIT
rate.”
The installation cap for solar
developments that will be bequeathed with FIT incentives shall be increased to
500 megawatts, based on the mandate of the Department of Energy.
For the solar plants to be qualified
into the FIT system, they must secure their certificate of endorsement (COE)
from the DOE with stamped commercial operation date.
That serves as the basis and the
material document that they would need when they finally apply for FIT
availment – first with the ERC and to be cemented via a Renewable Energy
Payment Agreement (REPA) with FIT Administrator National Transmission
Corporation.
The DOE-affirmed commercial
operation date of the plant will be the starting date for their FIT collection
(with retroactive effect) – and that shall stretch up to 20 years.
The energy department indicated that
it may need until end this week to complete all requests for validation of the
solar farm developments competing in the second wave FIT race.
Their entitlement will be for a FIT
rate of P8.69 per kilowatt-hour (kwh), manifestly with degression already from
the first round at P9.63 per kWh.
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