DOE prescribes ‘FIT availment’ option

Manila Bulletin 
By Myrna M. Velasco 
Published: June 4, 2013 
Renewable energy (RE) developers not included in the initial round of feed-in-tariff (FIT) availments will not be completely left out as the Department of Energy (DOE) prescribes an option for them to corner the incentive in the succeeding batch.
The department, however, cautioned that such will be subject to conditions under the FIT Rules – which may include “degression” rates and the proposed differentiated FIT charges depending on the scale of the facility’s capacity and on technology deployment.
“RE plant that operates under any of the above options may be issued COE (certificate of endorsement) for FIT eligibility for the next succeeding regimes of FIT System subject to the provisions of the FIT Rules,” a Circular on FIT availment issued by the DOE has noted.
Apart from waiting for the next batch of FIT rates, RE developers may also opt to enter into bilateral contracts with the distribution utilities and other off-takers (buyers) for their generated capacity.
Another alternative would be for them to “export the power generation directly to the Wholesale Electricity Spot Market” on a must-dispatch basis.
The energy department similarly qualified that it can only issue the COE for FIT eligibility on projects, but the final decision as to which developers shall be granted the incentive, will still rest with the Energy Regulatory Commission.
“The DOE nomination to the ERC shall not be construed as giving right to the RE developer to be included in the FIT-eligible projects,” it emphasized.
The department added that it “shall issue the COE for FIT Eligibility until the maximum installation target per technology is fully subscribed.”
The issued COE, it averred, “shall indicate the installed capacity that will be eligible for the FIT rate and the actual date of commercial operation” of the project.
The energy department has laid down specific parameters as to how projects could be bestowed certificate of commerciality in the initial phase; and the COE for FIT availment at commissioning stage.
“Only RE developers holding certificate of confirmation of commerciality shall be issued COE for FIT eligibility,” the DOE stressed
One of the key requirements on FIT eligibility endorsement would be the project’s attainment of electromechanical completion. It simply means reaching 80-percent construction completion as certified by the project’s turnkey contractor.
From that phase, the DOE noted that “not later than 15 working days from the last day of site validation, (it) shall issue the confirmation or denial of the electromechanical completion, including the existence of interconnection facility.”
It will also be the duty of the RE developer to inform the energy department of successful commissioning of its plant, which will become the subject of the latter’s validation.   source