Two solar projects lose FiT eligibility

Posted on November 25, 2016
http://www.bworldonline.com/content.php?section=Economy&title=two-solar-projects-lose-fit-eligibility&id=136893

THE Department of Energy (DoE) has confirmed talk that two solar energy projects previously endorsed to receive a guaranteed fixed rate for their power output were recommended for exclusion from the feed-in-tariff (FiT) scheme.

Energy Secretary Alfonso G. Cusi said the department had received the recommendation of the Energy Regulatory Commission (ERC) on how to proceed with the contentious certificate of endorsement (CoE) issued by the previous government.

“That’s what we are looking at,” he said in Filipino when asked whether the ERC has submitted its recommendation. “But there was no feedback yet from the person studying it.”

Mr. Cusi previously said that he instructed the creation of a task force to investigate allegations that the certificates were not fairly given out. Members of solar industry associations have previously sought a meeting with the secretary to point out alleged irregularities.

The DoE’s endorsement is given before the ERC issues each qualified solar project developer a certificate of compliance, which is then reviewed by the National Transmission Corp. (TransCo) as basis before issuing a renewable energy payment agreement, or REPA. TransCo issues the agreement, which the developers use to support their claim to the guaranteed FiT rate.

Asked about how the issue would be resolved, Mr. Cusi said the exclusion of the two solar developers will not mean their slots would be awarded to new entrants. He did not identify the two entities.

In June, the DoE under the past administration endorsed 17 solar projects to receive the guaranteed feed-in-tariff of P8.69 per kilowatt-hour (kWh) for 20 years in a race that ended in mid-March.

Before them, seven other projects were endorsed to receive a rate of P9.68 per kWh, bringing the total installed capacity of the 24 projects to 525.95 megawatts (MW) or 25.95 MW more than the department’s target of 500 MW.

Under the FiT system, qualified developers of emerging renewable sources are offered a fixed rate per kWh of their exported electricity, but excluding the energy for their own use. Their entitlement is taken from a “feed-in-tariff allowance” billed to all on-grid electricity consumers who are supplied with power through the distribution or transmission network. -- Victor V. Saulon