(The Philippine Star) | Updated January 5, 2018 - 12:00am
MANILA, Philippines —
The Department of Energy (DOE) is likely to extend the feed-in tariff (FIT)
allocation for biomass and run-of-river technologies by another three years, a
ranking official said.
A draft for the FIT
allocation extension has been submitted for signing by Energy Secretary Alfonso
Cusi, DOE Undersecretary Felix Fuentebella said.
“We’re looking at
three years or until the capacity for run-of-river hydro or biomass is filled
up, whichever comes first,” he said.
Last year, the DOE
–through the Renewable Energy Management Bureau (REMB) – started advising
hydropower and biomass developers to look for off-takers as the FIT was set to
expire on Dec. 31, 2017.
If signed, it would
mean the developers can fill up the remaining allocation for biomass and run-of-rive
hydropower plants until 2020.
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.
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.
Latest DOE-REMB data
showed a total of 28.6976 MW have been taken up by existing run-of-river hydro
projects, while 144.80 MW hve been consumed by completed biomass plants as of
end-2016.
However,DOE director
Mario Marasigan said there are a number of biomass projects that met the
end-2017 deadline originally set by government.
Following requests from
developers, the National Renewable Energy Board (NREB) submitted to the DOE its
recommendation for the extension of the FIT program for the two technologies.
Philhydro Association
Inc., composed of hydropower developers, manufacturers, construction companies
and consultants, asked the DOE to clarify the FIT for run-of-river hydropower
since its installation target “has not been fully subscribed due to factors
beyond the developers’ control.”
The top 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 permit.
Power developers have
also stressed that run-of-river hydro projects are long gestation developments
that will cover the period to secure permits and undertake studies, therefore
they need more time for completion to avail of FIT perks.
Meanwhile, feedstock is
the main challenge for biomass developers. Other challenges include the lack of
technology and financing.
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