PNOC renewables to put up more solar rooftop systems

By Danessa Rivera (The Philippine Star) | Updated September 4, 2017 - 12:00am

http://www.philstar.com/business/2017/09/04/1735476/pnoc-renewables-put-more-solar-rooftop-systems

MANILA, Philippines -  PNOC Renewables Corp. (PNOC-RC), the renewable energy arm of state-run Philippine National Oil Co., is setting up more solar rooftop systems in government-related facilities as part of its thrust to promote the use of renewable energy and energy efficient projects.

It has signed a memorandum of agreement with the Philippine International Convention Center to install a 1.2-megawatt (MW) solar photovoltaic facility at the PICC Complex.

Once completed, it will be PNOC-RC’s largest solar rooftop project in government buildings.

The PICC solar project shall be implemented in three phases, the first of which comprises the rooftops of the reception, secretariat and delegation buildings.

The installation of the second and third phases is expected to be done in other PICC buildings by 2018.

“The project is PICC’s way of supporting the government’s renewable energy program which promotes the development, utilization, and commercialization of clean and green energy technology. We are grateful for this mutually beneficial partnership with PNOC-RC,” PICC general manager Renato Padilla said.

For its part, PNOC-RC said it is hopeful the milestone would pave the way for more collaboration with other government agencies in pursuing the use of renewable energy towards an energy-efficient industry.

So far, the government-run company has installed several solar rooftop systems in various government-related facilities.

Earlier this year, it completed three solar rooftop installations totaling 240 kilowatts in the University of the Philippines in Diliman, making it its first state university project.

A 200-kw solar rooftop project was also built at the Commission on Audit dormitory and the Professional and Institutional Development Sector building last February.

More recently, PNOC-RC inaugurated two projects with the Bangko Sentral ng Pilipinas (BSP). The first one is a 200-kw project constructed at the BSP electronic data processing center in Manila which will supply a portion of the buildings’ energy demands.

The second solar rooftop installation with the central bank is a 400-kw solar facility at the BSP Security Plant Complex in Quezon City, the largest among all the installation of PNOC RC on government buildings to date.          

TransCo seeks higher feed-in-tariff allowance

By Danessa Rivera (The Philippine Star) | Updated September 2, 2017 - 12:00am

http://www.philstar.com/business/2017/09/02/1734853/transco-seeks-higher-feed-tariff-allowance

MANILA, Philippines - The National Transmission Corp. (TransCo) wants consumers to cover the shortfall of payment to renewable energy (RE) developers eligible under the feed-in tariff (FIT) system next year.

The state-run firm has filed an application with the Energy Regulatory Commission (ERC) to increase the feed-in tariff allowance (FIT-All) to 29.32 centavos per kilowatt-hour (kwh).

The proposed FIT-All is eyed for implementation in January 2018, which will be collected by distribution utilities (DUs), retail electricity suppliers (RES) and the National Grid Corp. of the Philippines (NGCP) from end-users.

A uniform charge billed to all on-grid electricity consumers, the FIT-All will cover payments for renewable energy projects eligible to receive FIT incentives.

It is part of the implementation of the Renewable Energy Law promulgated in 2008, which will serve as an incentive to RE developers to further pursue developments in the sector.

Under the FIT-All guidelines, TransCo is designated as the administrator of the FIT-All fund and is required to make an annual determination of the tariff.

TransCo estimates that the FIT-All fund it manages will have a deficit of P8.67 billion, assuming its 2017 application is approved.

Meanwhile, it also needs to settle FIT differential for 2015, 2016 and 2017 amounting to P163.68 million, P528.6 million and P134.38 million, respectively, which are due in 2018. The FIT differential pertains to energy generation from 2015 to 2017 expected to be billed to TransCo.

As required, the FIT-All 2018 application was filed a year prior. This as the ERC has yet to decide to approve the 2017 collection. For this year, TransCo proposed a FIT-All of 22.91 centavos per kwh.

So far, 18.3 centavos per kwh is being collected from consumers, which was just approved last June. This is an increase from the 12.4 centavos per kwh previously charged to consumers.

Earlier, TransCo president Melvin Matibag said the state-run firm is in talks with the World Bank and China-led Asian Infrastructure Investment Bank for a zero-percent interest loan to cover the backlog to be paid to renewable energy developers under FIT.

He said the agency has not been remiss in collecting the FIT-All fund but collections are not enough due to regulatory lag.

The loan, which could amount to as much as P20 billion, is seen to solve the outstanding balance of P8.2 billion as of July, Matibag said.

Semirara wins P77.25-M tax refund

Philippine Daily Inquirer / 05:10 AM September 02, 2017

http://business.inquirer.net/236125/semirara-wins-p77-25-m-tax-refund

The Supreme Court (SC) has granted Semirara Mining and Power Corp.’s (SMPC) appeal for a tax refund of about P77.25 million.

The high court upheld the March 2011 findings of the Court of Tax Appeals, which sided with the energy firm for being “erroneously” taxed for its coal sales.

In a decision last June 19, the SC agreed with the tax court that the company—then named Semirara Mining Corp. or SMC—was exempt from the value-added tax provided in the Tax Code and was given incentives through Presidential Decree No. 972. Enacted in 1976, the executive fiat promotes an accelerated exploration, development, exploitation, production and use of coal.

The company started out as a state-run producer of coal, but is now under the DMCI group and is also engaged in electricity generation and coal exports.

Early this week, SMPC said it has secured approval from the Securities and Exchange Commission (SEC) to raise its authorized capital stock to P10 billion from P3 billion.

“The additional authorized capital will be used to maximize equity funding for future investment/expansion of the business that the board (of directors) deems to be in the (SMPC’s) best interest,” the company said in a statement.

It said the increase would allow it “to act urgently and appropriately on business opportunities and developments as they may arise in the future.”

Based on the SEC approval, at least one quarter of the P7-billion increase will be subscribed and fully paid up through a declaration of stock dividends.