ERC to re-study FIT compliance certificate issuance for wind projects

by Myrna Velasco, January 21, 2015
from Manila Bulletin

The Energy Regulatory Commission (ERC) will re-study the issuance of certificate of compliance (COC) on the feed-in-tariff availments of wind power projects, in light of the transmission dilemmas on the wheeling of their generated electricity to the grid.

In an interview, ERC Executive Director Francis Saturnino Juan noted that they will already give approval for the settlements of FIT for the other technologies, but they might defer decision, for the meantime, on the wind plants.

The renewable energy projects which could be given initial FIT settlements on their generated capacity would be the solar, hydro and biomass facilities.

The payments shall be reckoned on the commercial operation date as stated in the Department of Energy’s endorsement and the stipulations under the Renewable Energy Payment Agreements (REPAs) they have inked with FIT administrator National Transmission Corporation.

“We have yet to decide on the FIT-COCs of wind plants….we have to consider the justifications provided by the DOE and also the concern of the other developers,” he said.

The FIT-COC serves as a license that gives go-signal for the operation of the power facilities – and in the case of the RE projects, it could also back up their application for FIT availments.

The ERC official has explained that the wind projects could not sign REPA without first securing their COCs from the ERC.

The wind projects granted with certificates of endorsement for FIT incentives by the energy department include the 18.9-megawatt Bangui wind facility expansion; the 150MW Burgos wind plant of Energy Development Corporation (EDC); and the 81MW Caparispisan wind facility.

On concerns regarding the transmission constraint limiting the capacity delivery of the affected wind plants, the DOE reportedly justified that “after the connection point, it will no longer be the concern of the developers.”

But Juan indicated the regulatory body will be taking prudent decision on the matter to ensure that these concerns will not eventually result in legal entanglements of the FIT system’s implementation.

Some of the other wind projects have invested on transmission line and substation facilities to ensure that their capacities can be fully injected into the grid, hence, tangibly shoring up the system’s power supply.

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