ERC names Petro Solar a FiT-eligible power plant

by Lenie LecturaJuly 13, 2016

from Business Mirror

PETRO Solar Corp.’s 50-megawatt (MW) Tarlac-1 Solar Power Project has been certified by the Energy Regulatory Commission (ERC) as a feed-in tariff (FiT)-eligible power plant.

This, after the ERC approved on July 12 the certificate of compliance as a FiT (COC-FiT) eligible power plant.

With a COC-FiT, the solar provider is guaranteed FiT payments from February 10, 2016, to February 9, 2036, at the approved FiT rate of P8.69 per kilowatt-hour (kWh).

This approval follows the Provisional Authority to Operate as a Feed-in-Tariff (PAO-FiT) eligible power plant granted to the project by the ERC on March 30.

PGEC Vice President and COO FG Delfin Jr. said the solar project attained 80-percent electromechanical completion on December 23, 2015, and started delivery of power to the Luzon grid on January 27, 2016, ahead of the March 15, 2016, deadline for the 500-MW solar FiT allocation.

“After the Department of Energy granted our project the Certificate of Endorsement for FiT eligibility [COE-FiT] last March 7, 2016, the ERC approved PetroSolar’s PAO-FiT on March 30, officially making us qualified to receive FiT payments from transco, through a renewable-energy payment agreement that took effect on May 10, 2016,”  Delfin said.

This COC-FiT release effectively supersedes the PAO-FiT and confirms and extends the FiT payments for 20 years.

“Not only will this assure our lenders and investors, but it also ensures PetroSolar’s remittance of the national wealth royalty and ER 1-94 payments for the benefit of our host communities as long as we are generating power,” Delfin said.

The Tarlac-1 solar facility covers 55 hectares of industrial land within the Central Technopark in Tarlac City, registered with the Philippine Export Zone Authority.  It is the first solar-energy plant of Petro Solar, a joint-venture firm 56 percent owned by PetroGreen Energy Corp. and 44 percent owned by EEI Power Corp.

PGEC is the renewable-energy holding company of publicly-listed Petroenegry Resources Corp. (PERC).

“ERC’s COC-FIT approval for our Tarlac-1 solar facility testifies to our satisfactory compliance to all technical, organizational, legal and financial requirements to operate a solar power plant,” PERC President Milagros V. Reyes said.

“Along with the FIT payments for our 36-megawatt (MW) Nabas wind facility and the long-term energy supply contract for our base-load 20-MW Maibarara-1 geothermal power station and its on-going 12-MW expansion [Maibarara-2], these assured revenue streams boost PERC’s expansion from our Gabon oil production towards renewable energy development and power generation,” Reyes said.