Published
November 23, 2016, 10:01 PM By Myrna M. Velasco
Fund administrator
National Transmission Corporation (TransCo) will be filing for roughly P0.23
per kilowatt- hour (kwh) feed-in-tariff allowance (FIT-All) next week with the
Energy Regulatory Commission (ERC) – as incentive to renewable energy
installations.
This will almost double
the current P0.12 per kwh FIT-All component in the electric bills, a separate
line item set as subsidy to RE projects coming directly from consumers’
pockets.
Energy Secretary
Alfonso G. Cusi said he would have wanted to take out the FIT-All as a burden
for consumers, but the ‘very immediate need” for the mandated cost pass-on will
no longer allow him the time leeway to explore for options.
“If I have my way, I
don’t want the FIT-All as pass-through to consumers, but that’s already there,”
the energy chief stressed.
It was gathered from
TransCo that roughly P4.0 billion will account for cost under-recoveries and
integrated in the adjusted FIT-All filing for calendar year 2017.
The bulk of the cost
pass-on will account for the added installations, primarily in solar farm
developments coming on stream from the second wave FIT race culminating in
March this year.
The very low spot
prices in the Wholesale Electricity Spot Market (WESM) – set as reference point
in the FIT-All computation – had been triggering the uptick of the RE cost
incentive being passed on in the electric bills.
It was emphasized that
for solar developments, the estimates just factored in the costs up to the
prescribed 500-megawatt cap in installations.
The second round FIT
contest on solar technology had been oversubscribed – reaching 890 megawatts,
hence, close to 400MW are still not included in the scale of installations to
be incentivized with a FIT rate of P8.69 per kWh.
Cusi earlier indicated
to media that he will no longer allow any third round of FIT incentives for
solar and wind developments – and that may include the current solar
“over-developments.”
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