Wednesday, April 6, 2016

ERC clarifies rules on solar certification



by Myrna Velasco April 5, 2016

In view of the anticipated award of new feed-in-tariff (FIT) incentives to solar projects, the Energy Regulatory Commission (ERC) has clarified rules on its issuance of certificates of compliance (COCs) that will set the go-signal of solar facilities’ commercial operations.
In a resolution, the regulatory body noted that for the FIT-incentivized solar plants, it will be issuing a COC “in favor of a generation company for its FIT-eligible RE power plant which has been previously issued a Certificate of Endorsement by the DOE indicating the full commissioning and status of commerciality within the installation target and before the 15 March 2016 deadline.”
The ERC added that for those not included in the capped installation for FIT and had completions beyond the March 15, 2016 deadline, “only a regular COC shall be issued for any generation company.”

The Commission further qualified that “any subsequent entitlement to the FIT rate shall be subject to the rule-making process of the ERC and for the determination of the appropriate FIT rate.”
The installation cap for solar developments that will be bequeathed with FIT incentives shall be increased to 500 megawatts, based on the mandate of the Department of Energy.
For the solar plants to be qualified into the FIT system, they must secure their certificate of endorsement (COE) from the DOE with stamped commercial operation date.
That serves as the basis and the material document that they would need when they finally apply for FIT availment – first with the ERC and to be cemented via a Renewable Energy Payment Agreement (REPA) with FIT Administrator National Transmission Corporation.
The DOE-affirmed commercial operation date of the plant will be the starting date for their FIT collection (with retroactive effect) – and that shall stretch up to 20 years.
The energy department indicated that it may need until end this week to complete all requests for validation of the solar farm developments competing in the second wave FIT race.
Their entitlement will be for a FIT rate of P8.69 per kilowatt-hour (kwh), manifestly with degression already from the first round at P9.63 per kWh.

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