The Energy Regulatory Commission is studying the extension of the feed-in tariff rate for run-of-river projects at P5.8705 per kilowatt-hour from Jan. 1, 2020 until the full installation target of 250 megawatts is completed.
The ERC said in a draft resolution subject to public consultations that after careful consideration of the evidence and guided by the policy objectives in the Renewable Energy Act of 2008, “the commission deems it appropriate to maintain the current ROR hydro rate, without applying degression until its full subscription.”
It said the Department of Energy already granted a third round extension for the subscription of the balance of the installation target for ROR hydro until the 250-MW installation target was fully subscribed.
Data showed 145.577 MW covering 15 projects are eligible for the FIT, while the remaining 102.423 MW of capacity have not been subscribed.
“The commission deems it appropriate to likewise extend the ROR Hydro FIT2 rate at P5.8705 per kWh for the third round extension granted by the DOE,” the ERC said.
The regulator granted a rate of P5.90 per kWh under the FIT1 covering 2014 to 2016 and P5.7805 per KWh under FIT2 for 2017 to 2019.
It monitors and reviews the development of RE generation and the impact of FIT rates within three years and every two years thereafter as directed by the FIT rules.
The regulator acknowledged that the FIT is a policy mechanism to accelerate investments and the growth of renewable energy as a key strategy toward achieving energy security and self-reliance.