by Myrna Velasco, 07 March 2015
from Manila Bulletin
The service contract of a 20-megawatt solar power project in Currimao, Ilocos Norte is due for cancellation, a highly placed source at the Department of Energy (DOE) has tipped off.
It was gathered that the ‘notice of cancellation’ will be served soon to renewable energy service contract holder Mirae Asia Energy Corporation, a South Korean firm.
The developer company reportedly suffered from snags in pursuing its financial closing for the planned solar farm venture.
According to the energy department, Mirae Asia Energy will likely be given 60 days to present its project implementation option via a ‘show cause order’ before the government could proceed with its final cancellation verdict.
Based on the project’s original implementation timeline, the solar facility should have been due for commercial commissioning prior to summer this year.
The project developer went as far as securing grid connection for the wheeling of its capacity – until reports of it backpedaling on the planned investment.
The 20MW capacity of the Mirae Asia Energy was originally penciled in by the DOE as supply addition to Luzon grid these summer months.
Energy Secretary Carlos Jericho L. Petilla previously sounded off that his department has been expecting solar capacities up to 200MW coming on stream before summer. Until now though, no one is coming forward if they ever reached commercial commissioning.
Based on industry feedback, many of the developers are still waiting for the regulator’s decision on the next round of ‘degressed’ feed-in-tariff (FIT).
Preliminary discussions portend that the FIT for solar may go down at the range of P8.00 to P9.00 per kilowatt hour (kWh) from the prevailing P9.63 per kWh for the initial 50MW installation.