Capacity allocation for wind-power projects seen to double from 200 MW to 400 MW

by Lenie Lectura, 08 May 2015
from BusinessMirror

THE Department of Energy (DOE) has formally endorsed to the Energy Regulatory Commission (ERC) to raise the capacity allocation of wind-power projects to a total of 400 megawatts (MW) from the current 200 MW.

National Renewable Energy Board (NREB) Chairman Pete Maniego said the DOE certification was submitted to the ERC on April 24. “Additional wind installation target is 200 MW. The total would be 400 MW,” he said.

The NREB is the body tasked by the Renewable Energy Act of 2008 to recommend policies, rules and standards to govern the implementation of the law, which granted fiscal and non-fiscal incentives to renewable energy (RE) projects.

According to Energy Director Mario Marasigan, the additional allocation will help augment the needed capacity this year up to 2016 since wind installation target is already subscribed.

The new feed-in tariff (FIT) rate for wind projects will have to be evaluated so the ERC can arrive at a reasonable rate.

The FIT is the per kilowatt-hour (kWh) rate that will be guaranteed to RE developers to ensure the viability of their
projects. Consumers shoulder the tariff through a new line item in their electricity bills. They are now paying an additional P0.0406 per kWh.

The ERC recently approved to adopt a new FIT rate of P8.69 per kWh for solar energy projects.
The change in rate for solar is necessary to accommodate the increased capacity allocation from 50 MW to 500 MW.

“For the solar powered-facilities that have been commissioned prior to the new solar FIT rate’s effectivity, the original solar FIT rate of P9.68 per kWh shall continue to apply,” the ERC said.

In 2012 the ERC approved FIT rates for RE are P6.63 per kWh for biomass; P8.53 per kWh for wind; P5.90 per kWh for run-of-hydro; and P9.68 per kWh for solar.

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