IFC warns of waning RE interest

Manila Times.net
BY EUAN PAULO C. AÑONUEVO REPORTER

THE International Finance Corp. (IFC) warned that investments in the renewable energy sector may fizzle out unless government comes up soon with the mandated tariff incentive. Jesse Ang, IFC resident representative to the Philippines, said the government should study and come up with the terms of the feed-in-tariff (FIT) mechanism for renewable energy projects.

”It should be in place June of last year. The government must really act on it soon,” he said.

The FIT, which was mandated by the Renewable Energy Act of 2008, sets guaranteed payments over a definite period for renewable energy developers. Consumers would shoulder the cost of the tariff scheme in their electricity bills.

The National Renewable Energy Board (NREB) has yet to come up with the FIT for regulators’ approval.

The Energy Regulatory Commission granted the NREB several extensions to its initial deadline of August last year.

The recent extension would be up to March 31.

Energy Secreatary Jose Rene Almendras earlier said the government still has to invite a resource person from the World Bank to help craft the incentive program.

”The idea is to find the best possible way to encourage the investment into RE that’s needed without overdoing it by punishing the consumers. There’s a good economic balance that’s being looked for,” he said.

Although renewable energy investors remain optimistic about the approval of the FIT, Ang said “after a year, everybody will be gone” if it is still not released.

While waiting for the FIT, the IFC plans to look into energy-related projects under the public-private partnership (PPP) program of the government.

Ang said the IFC has been allotting some $200 million to $300 million each year for such projects.

”[But] we will come up with some announcement very soon on a PPP project,” he added.