Tuesday, August 29, 2017

RE developers pushing for extension of FIT allocation



 (The Philippine Star) |

MANILA, Philippines -  Renewable energy developers pushing for the extension of feed-in tariff (FIT) allocation for biomass and run-of-river technologies are given until the end of the month to submit their proposals.
These renewable energy players have yet to submit their proposals to the National Renewable Energy Board (NREB), the advisory body tasked with the effective implementation of renewable energy projects in the country.
“I asked them to submit a rationale on why they’re asking for an extension. They told me (they need) three to five years but they need to justify why,” NREB chairman Jay Layug told The STAR.
The NREB chairman gave proponents until end-August to submit their proposals to be deliberated upon and endorsed to the Department of Energy (DOE).
“In fact, I told them by end of August. (If they don’t submit,) I cannot endorse them to the DOE secretary. I have to have basis on why we’re asking for extension,” Layug said.
Last May, the NREB said it would study the proposal from developers to extend the allocation deadline by another two to four years after explaining the challenges in the development of biomass and run-of-river projects.
The main hurdle for run-of-river developments is securing clearance from the National Commission on Indigenous Peoples (NCIP)  because of the long process to get their consent for water permits.
Meanwhile, feedstock is the main challenge for biomass developers.
The NREB earlier targeted to complete and submit its proposal not later than the third quarter of this year. However, this has not yet been done since developers have yet to forward their position paper to the advisory body.
Unlike solar and wind, the FIT allocation for biomass and run-of-river technologies remain undersubscribed three years after the program’s implementation.
Originally, run-of-river hydro was approved a rate of P5.90 per kilowatt-hour (kwh) and biomass with a rate of P6.63 per kwh. Each technology was allotted an installation target of 250 MW each.
The FIT rates have already been lowered to P5.8705 per kwh for run-of-river hydro and to P6.5969 per kwh for biomass effective this year.
As of end-December 2016, a total of 28.6976 MW has been taken up by existing run-of-river hydro projects while 144.80 MW has been consumed by completed biomass plants.
Power developers have stressed that run-of-river hydro projects have long gestation developments that will cover the period to secure permits and undertake studies, therefore need more time for completion to avail of FIT perks. 
Meanwhile, the DOE has said the lack of technology, financing, and feedstock supply are among the hurdles in developing the biomass projects in the country.

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