Solar-power developers ask DOE anew to raise project installation targets

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WEDNESDAY, 27 JULY 2011 20:35 PAUL ANTHONY ISLA / REPORTER

THE Philippine Solar Power Alliance (PSPA) on Wednesday urged the Department of Energy (DOE) to increase the allocated installation targets for solar power projects.

This developed as the National Renewable Energy Board (NREB) said it is willing to tap a designated government financial institution to manage the feed-in tariff (FIT) funds collected from consumers for the renewable-energy (RE) developers rather than the National Grid Corp. of the Philippines doing the job as stated under FIT rules.

Pete Maniego, NREB chairman, said the Energy Regulatory Commission has scheduled public hearings on FIT set to begin on August 3. He added that the Power Sector Assets and Liabilities Management Corp., Land Bank of the Philippines and Development Bank of the Philippines are among those being considered to manage FIT funds.

The DOE recently reduced further the allocated installation target for solar power projects to 50 megawatts (MW) instead of NREB’s recommendation of 100 MW in the next three years.

In Cebu City, Aloysius Santos, First Gen vice president for sustainability and energy efficiency, told reporters it is of utmost necessity  to start the development of RE technologies, saying this would enhance the country’s technical capability  for such projects in the future,

“These things take years, so by going in now you build that technical capability of local RE sector in rolling out [and]  to roll out the system to a wider market,” Santos said. Even if the country waits for technology prices to drop, he said the country also has to develop its own technical capability.

In relation to FIT system, PSPA said installation targets are milestones wherein the achievement of targeted capacities will signal the start of succeeding projects where FIT rates will be reduced, and project approvals will be more difficult to obtain.