TransCo seeks higher RE FIT-All charge

by Myrna Velasco – December 22, 2015

from Manila Bulletin

Fund administrator National Transmission Corporation (TransCo) is seeking provisional regulatory approval for it to implement higher feed-in-tariff allowance (FIT-All) charge of P0.1025 per kilowatt- hour (kwh) in the electric bills starting January next year.

TransCo though has indicated that its computed FIT-All for 2016 is placed at P0.1470 per kwh based on the forecast generation of each renewable energy (RE) development qualified in the FIT system.

“Pending hearing on the merits of the present application, provisional authority to collect FIT-All of P0.1025 per kwh effective January 2016 billing period be issued,” the state-run transmission firm has prayed with the Energy Regulatory Commission (ERC).

That will be coming from a lower FIT-All charge of P0.0406 per kwh as passed on in the consumers’ electric bills this 2015.

The FIT administrator firm said the adjustment had been due to the additional capacities qualified under the incentive scheme; plus the cost difference of the “avoided technology” as underpinned by average settlement prices in the Wholesale Electricity Spot Market.

Of the estimated cost recoveries totaling P19.676 billion for 2016, about P7.969 billion will be for wind technology; P5.685 billion for solar; P4.811 billion for biomass; and P1.210 billion for biomass.

By 2017, the aggregate cost recoveries to be passed to consumers would be P22.861 billion – with the highest amount still for wind at P7.971 billion. For solar, the total incentive costs to be recouped would be P6.340 billion; hydropower at P5.368 billion; and P3.179 billion.

The TransCo added that the RE developers, primarily those in wind projects, “provided energy generation forecast that differed from the forecast presented by the DOE (Department of Energy).”

It stressed that while it generally followed the DOE data in the filing done, the transmission firm also factored in “the monthly seasonality culled from the forecast submission of the RE developers.”

In the case of biomass developments, TransCo cited “some very high resulting annual capacity factor in the DOE projection…with the knowledge that most of these biomass plants do not have year-round generation capability because of the availability of fuel.”

For solar and hydro projects, TransCo just basically made reference to the projections given by the energy department.

TransCo has emphasized that it limited projections to the FIT-eligible capacity caps which is 500 megawatts for solar up to March 2016; 400MW for wind; 250MW for hydropower; and 250MW for biomass.

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