NREB proposes new FIT rates for wind, solar power Lower at P7.66 per kilowatt-hour

by Myrna Velasco – July 20, 2016

from Manila Bulletin

The National Renewable Energy Board (NREB) has proposed new feed-in-tariff (FIT) rates that will account for the third round of installations for wind and solar farm developments.

According to NREB chairman Pete Maniego Jr., the proposed third round of FIT rate for solar would be at P7.66 per kilowatt-hour (kWh), down from the recent P8,69 per kWh.

The targeted additional installations for solar technology will be 500 megawatts, but that will already include the excess of 300MW from the second wave race of development.

For wind, the propounded next FIT rate will be at P6.97 per kWh, also reduced from the most recent FIT charge of P7.40 per kWh. It will also cover additional 500MW of installations.

Maniego said their endorsement was still with the past administration, but has also been endorsed to the present one – and it will already be up to them to decide on it.

For both wind and solar technologies, investors have been on aggressive capital outlay and the next rounds are already on the bag so long as the government lays down its verdict on the next FIT rates.

On the other technologies, he stressed that there had been no need for FIT reduction yet because their installation caps have not been filled up.

For biomass, in particular, Maniego noted that investors are still hurdled with feedstock sustainability concerns; while for hydro, the major issue is with securing permits.

Since the commercial developments of RE in the Philippines underpinned by the Renewable Energy Act, the outgoing NREB chair has emphasized that the sector already cornered US$4.9 billion worth of investments.

The anticipated addition of 1,000 megawatts for solar and wind technologies will jack up the share of emerging RE in the country’s power mix from more than 3.0-percent currently.