Philippines: Two solar projects lose FiT eligibility

Philippines: Two solar projects lose FiT eligibility

THE Department of Energy (DoE) has confirmed talk that two solar energy
projects previously endorsed to receive a guaranteed fixed rate for their
power output were recommended for exclusion from the feed-in-tariff (FiT)
scheme.

Energy Secretary Alfonso G. Cusi said the department had received the
recommendation of the Energy Regulatory Commission (ERC) on how to proceed
with the contentious certificate of endorsement (CoE) issued by the previous
government.

"That's what we are looking at," he said in Filipino when asked whether the
ERC has submitted its recommendation. "But there was no feedback yet from
the person studying it."

Mr. Cusi previously said that he instructed the creation of a task force to
investigate allegations that the certificates were not fairly given out.
Members of solar industry associations have previously sought a meeting with
the secretary to point out alleged irregularities.

The DoE's endorsement is given before the ERC issues each qualified solar
project developer a certificate of compliance, which is then reviewed by the
National Transmission Corp. (TransCo) as basis before issuing a renewable
energy payment agreement, or REPA. TransCo issues the agreement, which the
developers use to support their claim to the guaranteed FiT rate.

Asked about how the issue would be resolved, Mr. Cusi said the exclusion of
the two solar developers will not mean their slots would be awarded to new
entrants. He did not identify the two entities.

In June, the DoE under the past administration endorsed 17 solar projects to
receive the guaranteed feed-in-tariff of P8.69 per kilowatt-hour (kWh) for
20 years in a race that ended in mid-March.

Before them, seven other projects were endorsed to receive a rate of P9.68
per kWh, bringing the total installed capacity of the 24 projects to 525.95
megawatts (MW) or 25.95 MW more than the department's target of 500 MW.

Under the FiT system, qualified developers of emerging renewable sources are
offered a fixed rate per kWh of their exported electricity, but excluding
the energy for their own use. Their entitlement is taken from a
"feed-in-tariff allowance" billed to all on-grid electricity consumers who
are supplied with power through the distribution or transmission network.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.bworldonline.com/content.php?section=Economy&title=two-solar-proj
ects-lose-fit-eligibility&id=136893&utm_campaign=SUN+Newsletter&utm_source=h
s_email&utm_medium=email&utm_content=38216950&_hsenc=p2ANqtz--ZZjRQiQ-kFu0lh
jqW-Vjci43tWwS0YZQ2bVBToPGsIevFGVhDqtx0hQT9_7rnBNOaKXXSsKP_VzbOvIq-rANYK9pga
w&_hsmi=38216950

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com