Thursday, April 28, 2016

NREB proposes 3rd round of FIT for solar



by Myrna Velasco April 27, 2016

The dependence of renewable energy (RE) on subsidies is not seeing its end very soon, as the National Renewable Energy Board (NREB) has calendared to finalize this week the third round of feed-in-tariff (FIT) incentive to be granted to solar projects.
As proposed, this will cover the third round of FIT for the solar developments that have been dislodged in the second wave FIT of P8.69 per kilowatt hour.
Sources from the industry hinted that one of the recommended numbers for the next solar FIT had been at P7.90 per kilowatt hour.
Nevertheless, NREB Chairman Pete Maniego noted that “there is no final figure yet, but we are still trying to reduce the rate as much as possible.”
It was learned from other sources represented at the renewable energy body that the other proposal will be to lower it further – by roughly P1.00 from P7.90/kwh.
Maniego added that the NREB board will convene this week to firmly discuss and finalize the details and specific parameters for the propounded third round of FIT for solar.
“It (3rd round FIT) is still being finalized and subject to discussion in NREB’s board meeting. If approved by the board, the proposal will be endorsed to DOE (Department of Energy) for approval,” the NREB chair has emphasized.
Energy Secretary Zenaida Y. Monsada has told reporters this week that the capacity of all solar farm projects completed hovered at roughly 900 megawatts.
Since the total FIT-covered capacity will just be limited to 500 megawatts in the initial two batches, close to 400MW will be dropped from the FIT incentive system.
That as a given, the government is seemingly softening now on the FIT-deposed project developers’ bid for added round of subsidies.
The FIT system will guarantee the profitability of the solar developers in the next 20 years – as their capacities injected into the grid will be part of the FIT-Allowance collections from all electricity ratepayers.

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