Some existing solar-power providers may not qualify for FiT perks–DOE

by Lenie LecturaApril 27, 2016

from Business Mirror

ENERGY Secretary Zenaida Y. Monsada has hinted at the possibility of disqualifying some solar-power providers, even if they were able to meet the March 15 deadline for the expanded feed-in-tariff (FiT).

“There are instances when their solar-power facilities are already up and running prior to the deadline, but suddenly conked out. I am still waiting for the final report, but definitely this is being looked at as possible ground for disqualification,” Monsada said.

Monsada’s office, the Department of Energy (DOE), has so far issued Certificate of Endorsement for FiT Eligibility (COE-FiT) to 11 solar-power plants, accounting for 292.07 megawatts (MW) to the Energy Regulatory Commission. 

More solar-power projects would be issued COE-FIT at the completion of the ongoing validation and assessment of the submissions received by the DOE, in relation to the deadline for the expanded FiT for solar.

It can be recalled that the first tranche of the solar for FiT was at 108.90 MW at P9.68 per kilowatt-hour (kWh), while the second tranche was the remainder for the 500-MW installation target at P8.69 per kWh.

Monsada said she wants the final list out soon. “It should not take long. It would be out soon.”

She, however, acknowledged that not all applicants made it to the list, but her office would be transparent in releasing the final list, and how her office was able to determine why some failed.

“We are sure there will be questions, because not all will be accepted. Now, there are over 800 MW in all, and definitely not all of them made it,” she said.

FiT is one of the policy mechanisms eyed by the DOE, as it aims to maintain the share of renewable energy (RE) to at least 30 percent in the country’s power mix.

The DOE strongly supports the increased use of RE in the country under a level playing field and transparent implementation of incentives, such as the FiT program.

Under the FiT system, qualified developers of emerging RE sources are offered on a fixed rate per kWh of their exported electricity to the distribution or transmission network. This scheme excludes the energy utilized from RE plants eligible for own use.