PetroSolar gets provisional okay on FIT incentives

by Myrna Velasco – May 2, 2016

from Manila Bulletin

A provisional approval has already been granted by the Energy Regulatory Commission (ERC) for the operation of the 50-megawatt peak (MWp) Petrosolar Corporation project with feed-in-tariff (FIT) incentives.

Alongside this milestone, the project company also inked earlier its renewable energy payment agreement (REPA) with FIT Fund administrator National Transmission Corporation.

According to PetroGreen Energy Corporation vice president and chief operating officer Francisco G. Delfin Jr, the ERC approval and the REPA signing firmly cemented their solar farm’s bid for the 20-year FIT perks.

PetroGreen Energy is majority shareholder in the project’s corporate vehicle with 56% stake; while the balance of 44% is held by affiliate EEI Power Corporation.

“This assures our company and our lenders of revenue from FIT payment of P8.69 per kilowatt hour (kWh) from 2016 to 2036,” Delfin noted. Following the issuance of its provisional approval to operate as FIT-eligible plant (PAO-FIT), PetroSolar emphasized that it will now submit such to TransCo “for the determination of our REPA’s effective date.”

Additionally, PetroEnergy Resources Corporation president Milagros V. Reyes has emphasized that the PAO-FIT “effectively guarantees the FIT payment to PetroSolar and the financial viability of our investment.”

She recounted that the solar farm reached the required milestone completion in record-time because of their team’s exceptional determination to get the project ahead of the race.