Next DoE chief to decide on perks for solar projects

http://www.bworldonline.com/content.php?section=Economy&title=next-doe-chief-to-decide-on-perks-for-solar-projects&id=129005

INCOMING Energy Secretary Alfonso G. Cusi might be left to decide on the solar energy capacity in excess of the 500-megawatt (MW) installation target set under the previous administration.

Outgoing Energy Secretary Zenaida Y. Monsada told reporters that the feed-in-tariff (FiT) rate for projects that did not make it to the March 15 deadline was among her administration’s unfinished businesses, which could be decided on by Mr. Cusi.

The Department of Energy (DoE) originally set a target of 50 MW with a guaranteed FiT rate of P9.68 per kilowatt (kWh), but the allocation was later revised to 500 MW, with the Energy Regulatory Commission (ERC) lowering the rate on March 15, 2015 to P8.69/kWh, but only until March 15, 2016.

The FiT rate entitles renewable energy developers to a guaranteed rate for 20 years for every kilowatt-hour they feed into the grid. The payment is taken from a so-called feed-in-tariff allowance billed to all on-grid electricity consumers who are supplied with power through the distribution or transmission network.

However, the revised target drew participants from a number of developers, easily exceeding the target by at least 300 MW, Ms. Monsada previously said. The DoE has yet to issue the final list of developers that completed their projects, which includes commercially operating and injecting power into the grid as validated by regulators.

Ms. Monsada said she had met with Mr. Cusi to discuss the department’s structure, the staff whose term ends with the outgoing administration, and if he could look into whether some of them could be held over under his watch.

Ms. Monsada said there were questions whether a FiT rate would still be necessary for the excess capacity to meet the country’s greenhouse gas emission reduction target for 2030. The Philippines plans to reduce its emissions by 70% as part of its nationally determined contribution ahead of the 21st UN Conference of the Parties (COP21) in Paris in December 2015.

Signatories to the Paris climate summit pledged to limit the increase in global temperature by no more than 2 degrees Celsius from pre-industrial levels.

An association of solar power developers wants the DoE to hand over to the next administration the issuance of the final list of solar farm developers that will be granted a guaranteed tariff of P8.69 per kilowatt-hour under the revised target.

Philippine Solar Power Alliance said that in view of the change in administration, it was “fearful of any midnight decision which may cause uncertainty on investments especially foreign capital.”