Philippines: ERC defers grant of FIT-COC to 2nd-wave solar projects

Philippines: ERC defers grant of FIT-COC to 2nd-wave solar projects

Almost half of the "incentive qualifiers" in the second-wave solar projects'
race may not get their feed-in-tariff certificate of compliance (FIT-COC)
because of a re-investigation of the award process sought by the Department
of Energy.

Taking off from that premise, the Energy Regulatory Commission (ERC)
indicated to media that it will defer decisions on applications for FIT-COC
of the projects and capacity-installations earlier endorsed by the DOE for
FIT incentives.

ERC Commissioner Alfredo J. Non said "for those applying for FIT-COC with
the ERC, we are giving them a regular COC only until the completion of the
investigation of the DoE."

The ERC official emphasized that several investor-groups have filed protests
on grounds that the DOE may not have been transparent on its award of the
FIT incentives in the second round contest for solar projects.

Non stressed "there will be an investigation because the industry is forcing
DOE to really make a clear stand.because there's fear that the DOE may not
have been transparent in its processes."

At the same time, he said there were parties that lodged their complaints
with the ERC relating to timelines of project completions.

"We also received complaints, we have to look at the dates if these are
accurate.on our part, we have to set aside granting the FIT-COC
applications, we have to wait for the judgment of the DOE," the ERC official
noted.

It has to be qualified that the initial cut-off of FIT-COC grantees
effectively stopped March this year reportedly at 292 megawatts - from the
first to second round of solar capacity installations.

It entails then that chunk of the projects with certificates of endorsement
(COEs) for FIT from the DOE would still be on cliffhanger following the call
for fresh round of probe on the award scheme.

The capacity addition in the second FIT-qualifying round had been set at 450
megawatts, to add to the initial 50MW cap in the first batch.

Aside from the megawatt-capacity ceiling, concerns have also been raised on
the potential cost impact of the FIT-underpinned solar projects especially
since the cap spilled over to more than the 500MW prescription.

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Ref:
http://www.mb.com.ph/erc-defers-grant-of-fit-coc-to-2nd-wave-solar-projects/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com