FIT approval, DOE nod delay SunConnex solar energy projects

BUSINESS MIRROR
MONDAY, 19 SEPTEMBER 2011 20:35 PAUL ANTHONY A. ISLA / REPORTER


SUNCONNEX Development Corp., a solar-power developer based in the Netherlands, is still awaiting the approval of the Department of Energy (DOE) on its application to build seven to eight solar power plants all over the country, JJ Samuel Soriano, company president said on Monday.


SunConnex is planning to invest more than $100 million for solar-power projects in the country.


In an interview, the SunConnex official said the projects they have proposed to build, upon completion, will have a total generating capacity of 70 megawatts (MW).


Soriano said they plan to build the seven to eight solar farms in different locations with each having at least 5 MW on the average. The plan is estimated to cost $3 million to $4 million per megawatt.


At the same time, Soriano said they are also waiting for the approval of the feed-in tariff (FIT) rates by the Energy Regulatory Commission (ERC). FIT refers to a guaranteed rate given to renewable-energy developers for their output.


Soriano said their proposed projects would not progress without the necessary approval from the energy department. All other necessary permits have been secured.


The National Renewable Energy Board’s (Nreb) recommends that the FIT rates for solar power, ocean power, wind power, biomass and hydropower power to amount to P17.95 per kilowatt-hour (kWh), P17.65/kWh, P10.37/kWh, P7/kWh, and P6.15/kWh, respectively.


Nreb had earlier trimmed the installation target for solar-power projects to 50 MW instead of 100 MW.


Soriano stressed: “We think in the long-term, solar [power] will be needed by the country. It’s just a matter of time that we’ll be implementing all these projects.”


Jos Schlangen, SunConnex business development manager, said their company has set a 50-MW total generating capacity target all over the country.


“We can develop the projects on their own but they are also tapping local partners to construct and finance the solar facilities which is estimated to cost more than $100 million,” Schlangen said.