TransCo seeks P24.9-b FIT rate for renewables

National Transmission Corp. has filed for a feed-in tariff allowance rate of P0.2932 per kilowatt-hour equivalent to P24.9 billion as payment to renewable energy developers mandated under the Renewable Energy Law of 2008.

“After due notice and hearing, a FIT-All rate of P0.2932 per kWh for 2018 computed for RE projects with at least a nomination from DoE (Department of Energy) for eligibility under the FIT system be approved,” TransCo said in a petition to the Energy Regulatory Commission filed on Wednesday.

TransCo manages the FIT-All rate that is used to pay the eligible renewable energy developers under the FIT system, an incentive scheme that, among others, gives priority to connections to grid, purchase and transmission.

The FIT guarantees all eligible renewable energy plants an entitlement to the applicable FITs for a period of 20 years.

The ERC has granted the tariff rates for solar 1 at  P9.68 per kWh,  solar 2 at P8.69 per kWh, wind 1 at P8.53 per kWh, wind 2 at P7.40 per kWh, biomass at P6.63 per kWh and hydro at P5.90 per kWh.

TransCo said the grant of a provisional authority would allow the company to perform its duties make a timely payment of the FIT rate to RE developers to which they are entitled, allowing their continued operations.

TransCo said the implementation of the FIT-All rate of the P0.2932 per kWh effective January 2018 “is without prejudice to the final actual rate pending final disposition of its present application.”

TransCo said its initial computation showed a FIT-All rate of P0.3305 per kWh but it applied for a lower rate of P0.2932 per kWh after giving weight to projects that have been inspected by the DoE which achieved at least 80 percent electromechanical completion.

“The P0.3305 per kWh translates to P28 billion,” TransCo president Melvin Matibag said.

The FIT-All rate for 2018 was computed based on projects with nominations from DOE as of July 5, 2017. These projects have ongoing construction and reached at least 80 percent electromechanical completion, and are thus almost sure to operatte within the period under consideration.

TransCo, however, said that starting 2018, no additional projects were included in the list of projects submitted by the DoE, consistent with its thrust to have a review of policy after three years of FIT implementation.

Topics: National Transmission Corp. , TransCo , feed-in tariff allowance rate , FIT rate , renewable energy , Renewable Energy Law
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