Tuesday, January 3, 2017

ERC hears wind developers bid for higher FIT rate



Published January 2, 2017, 10:00 PM By Myrna M. Velasco

The Energy Regulatory Commission (ERC) is scheduling public hearing for the bid of wind farm developers for a higher feed-in-tariff (FIT) rate of P7.93 per kilowatt hour (kWh) compared to what was approved in the second round at P7.40 per kWh.
The power industry regulator has scheduled public consultation on the petition of the wind project developers this week – or January 6, 2017 at 9:00am.
If regulatory nod would be accorded on this, this may push the pass-on charge of FIT Allowance (FIT-All) to the consumers. Currently, FIT administrator National Transmission Corporation (TransCo) has a pending FIT-All application of P0.2291 per kWh at the ERC.
In its hearing notice, the regulatory body stipulated that “the petitioners seek the amendment of the wind FIT2 resolution and propose the adoption of P7.93/kWh as the wind FIT2 to which the wind FIT2 eligible projects shall be entitled to, commencing from their commercial operations date.”
The projects covered by this petition include the 54-megawatt Pililla wind farm of Alternergy Wind One Corporation; 54-MW San Lorenzo wind facility of Trans-Asia Renewable Energy Corporation; and the 36-MW Nabas wind development of PetroWind Energy, Inc.
The developer-firms averred that “the existing wind FIT2 does not allow (them) a reasonable rate of return on investment as contemplated in the FIT Rules.”
It has been batted for that “an amendment of the wind FIT2 resolution is in order to ensure that the wind FIT2-eligible projects sufficiently recover their costs, sustain their operations and attain reasonable return from their investments.”
Additionally, the ERC has noted that such must be done while “ensuring that there is no resulting windfall revenues for the petitioners and undue imposition to the consuming public.”

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