NREB directed to re-calculate FITs

Manila Bulletin
By MYRNA M. VELASCO
October 17, 2011, 1:01pm


MANILA, Philippines — Given the uproar ignited by the costly subsidy for solar technology, Energy Secretary Rene D. Almendras has directed the National Renewable Energy Board (NREB) to review its calculations of the feed-in-tariffs (FIT) and may re-do filing with the Energy Regulatory Commission (ERC) when warranted.


“I asked NREB to review the FIT filing,” has been the energy secretary’s crisp response when asked about the directive he has given to the NREB, which has tackled the order during its October 7 meeting.


When asked if he ordered re-calculation of the feed-in-tariffs, the energy chief just maintained that he wanted a review of the FIT because he was asked by the Joint Congressional Power Commission (JCPC) to have the subsidies re-examined, especially for technologies which will have punishing impact on consumers.


Although Almendras has not specified what particular FIT is being aligned for re-computation, it was gathered from NREB sources that the main target is actually solar.


Pressed further if the review will necessitate re-filing of the FIT application, Almendras indicated that such matter will be for NREB to decide. The Department of Energy has major oversight function over policy formulations at the renewable energy board.


The recent downtrends in the cost of solar technology as well as the lower FIT charges being implemented by other countries have been serving as “trigger points” for policymakers to seek re-calculation of the subsidy level for solar.


A source from the NREB though hinted that the Secretary’s request may not necessarily be heeded because that will imperil the credibility of the filing already made with the ERC.


Instead of re-calculating the subsidies, the stance articulated by NREB members would be to just let the ERC decide on what it deems would be “reasonable” for the technologies, which were initially, levied expensive FITs.


Some RE developers feel that they are being held hostage by the controversy and the extent of opposition generated by solar technology. The turn of events has similarly been impeding development prospects in the country’s renewable energy sector.


Solar, so far, has the highest FIT of P17.95 per kilowatt-hour (kWh). It was gathered from highly placed sources though that project developers may likely give in to a FIT of P14 to P15 per kWh.


Senator Sergio Osmeña III, who is the co-chair of the bicameral JCPC, already previously indicated that the acceptable FIT for solar would only be at P10 to P12 per kWh; that would be P6 to P8 lower than the rate advocated by project developers.