(The Philippine Star) | Updated August 28, 2017 - 12:00am
MANILA, Philippines -
Renewable energy developers pushing for the extension of feed-in tariff
(FIT) allocation for biomass and run-of-river technologies are given until the
end of the month to submit their proposals.
These renewable energy
players have yet to submit their proposals to the National Renewable Energy
Board (NREB), the advisory body tasked with the effective implementation of
renewable energy projects in the country.
“I asked them to submit
a rationale on why they’re asking for an extension. They told me (they need)
three to five years but they need to justify why,” NREB chairman Jay Layug told
The STAR.
The NREB chairman gave
proponents until end-August to submit their proposals to be deliberated upon
and endorsed to the Department of Energy (DOE).
“In fact, I told them
by end of August. (If they don’t submit,) I cannot endorse them to the DOE
secretary. I have to have basis on why we’re asking for extension,” Layug said.
Last May, the NREB said
it would study the proposal from developers to extend the allocation deadline
by another two to four years after explaining the challenges in the development
of biomass and run-of-river projects.
The main hurdle for
run-of-river developments is securing clearance from the National Commission on
Indigenous Peoples (NCIP) because of the long process to get their
consent for water permits.
Meanwhile, feedstock is
the main challenge for biomass developers.
The NREB earlier
targeted to complete and submit its proposal not later than the third quarter
of this year. However, this has not yet been done since developers have yet to
forward their position paper to the advisory body.
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 of 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 that run-of-river hydro projects have long gestation developments that
will cover the period to secure permits and undertake studies, therefore need
more time for completion to avail of FIT perks.
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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