Published : Thursday, July 28, 2011 00:00 Written by : R
SOLAR power developers want the Department of Energy (DOE) to increase the number of their projects that may qualify for tariff incentive.
In a statement, the Philippine Solar Power Alliance (PSPA) asked the DOE to raise the installation target for solar projects from 50 megawatts (MW) to 269 megawatts.
“We strongly appeal the good office of Secretary (Jose Rene) Almendras to reconsider and amend the installation target,” the group said.
The PSPA said that government should consider increasing its proposal to take advantage of the investments on solar power projects.
The 269-megawatt proposal would translate to about $800 million or P33.6 billion of investments as against only $150 million with a 50-megawatt target
The group said that solar projects, which could be put up in less than six months, will also contribute a minimum of P1 peso per kilowatt-hour savings on transmission costs because they could be directly connected to distribution utilities.
“Therefore, solar and other renewable energy will in fact provide much-needed additional capacity and displace very expensive peaking power, thereby reducing electricity prices in the future,” PSPA said.
Under the Renewable Energy Act of 2008, renewable energy projects may qualify for feed-in-tariff, which would be collected from consumers to guarantee their returns. This aims to spur the development of green power sources that have been stymied by limited markets and high investment costs compared with conventional plants.
Regulators, however, put a cap or the installation target on the number of projects that may qualify for the incentive mainly because of the potential impact of renewable energy sources, which are vulnerable to weather conditions, on electricity supply; and power rates, since consumers would shoulder the tariff.
For solar power projects, the DOE only approved a 50-megawatt target, a significant reduction from the recommendation of the National Renewable Energy Board (NREB) of 100 megawatts over three years.
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