By Danessa Rivera (The
Philippine Star) | Updated May 26, 2017 - 12:00am
MANILA, Philippines -
Renewable energy developers are pushing for the extension of the
feed-in tariff (FIT) allocation for biomass and run-of-river technologies set
to expire by year-end to avail of incentives amid challenges faced by
developers in building the projects.
The government, however, has
indicated it is inclined to nix the FIT incentives moving forward as this adds
burden to consumers.
The National Renewable Energy Board
(NREB), the advisory body tasked with the effective implementation of renewable
energy projects in the country, will study the proposal to extend the
allocation deadline by another two to four years, NREB chairman Jose Layug said
during the recent Power and Electricity World Philippines forum.
“They (developers) have
explained to us challenges for both biomass and run-of-hydro. NCIP (National
Commission on Indigenous Peoples) is primarily an issue because of the long
process to get their consent for water permit. Biomass feedstock is also a
challenge for them,” the NREB official said.
As DOE’s advisory body, NREB’s
recommendation will be critical in the policy decision for the renewable energy
sector.
Layug said the NREB is targeting to
complete and submit its proposal not later than the third quarter this year.
“We will definitely discuss with the board on
May 29-30 [then] we will endorse our resolution to the Department of Energy
(DOE),” he said.
Unlike solar and wind, the FIT
allocation for biomass and run-of-river technologies remain undersubscribed
three years after the program’s implementation.
Originally, run-of-river hydro was
approved a rate of P5.90 per kilowatt-hour (kwh) and biomass with a rate of
P6.63 per kwh. Each technology was allotted an installation target of 250 MW
each.
The FIT rates have already been
lowered to P5.8705 per kwh for run-of-river hydro and to P6.5969 per kwh for
biomass effective this year.
As of end-December 2016, a total
28.6976 MW has been taken up by existing run-of-river hydro projects while
144.80 MW has been consumed by completed biomass plants.
Power developers have stressed
run-of-river hydro projects are long gestation developments that would cover
the period to secure permits and undertake studies, therefore need more time
for completion to avail of FIT perks.
“They have to realize that
hydro development is actually very long gestation but at the same time, in
order for us to go ahead, we have to be assured that there is a market,” First
Gen Corp. president and COO Francis Giles Puno said earlier.
Meanwhile, the DOE has said the lack
of technology, financing, and feedstock supply are among the hurdles in
developing the biomass projects in the country.
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