August 22, 2019
THE National Renewable Energy Board (NREB) is proposing to extend the deadline for the feed-in tariff (FiT) allocation for biomass and run-of-river hydro until the second quarter of 2020.
NREB is the bureau guiding the Department of Energy (DoE) on the implementation of RE initiatives in the Philippines.
In a recent interview, NREB Chairman Monalisa Dimalanta said the installation target of 250 megawatts (MW) for biomass has exceeded by 100 MW.
On the other hand, the 250-MW capacity allotted for run-of-river hydro will be fully subscribed but developers won’t be able to conclude the testing within the year.
“The request we’ll make to the secretary is to accommodate both the extension on timeline for run-of-river hydro and the excess capacity within the timeline for biomass,” Dimalanta said.
“We’ll formalize our request to the secretary to accommodate all the capacity that will be tested for FiT eligibility,” said Dimalanta, adding the board is scheduled to meet this week.
The NREB head said Energy Secretary Alfonso Cusi is open to accepting the run-of-river hydro one but the bureau is still convincing him to take in the excess capacity for biomass, noting its impact on the FiT allowance (FiT-All).
Last month, Cusi said the agency would extend the FiT deadline from end-2019 until the quota was achieved.
Dimalanta also said the certificate of confirmation of commerciality were already issued to developers. This certification is issued to projects under development stage and those covered by RE operating contracts intended to be implemented under the FiT scheme.
The DoE had extended the incentive program for the two renewable energy sources until December this year, which was supposed to conclude in end-2017, after hearing the request of developers.
As outlined in Republic Act 9513, or the Renewable Energy Act of 2008, the FiT program aims to hasten the development of emerging RE sources, such as wind, solar, ocean, run-of-river hydropower, and biomass by giving perks to developers for 20 years.
Initially, approved run-of-river hydro and biomass rates were P5.90 per kilowatt hour (kWh) and P6.63 per kWh, respectively. These were later reduced to P5.8705 per kWh for run-of-river hydro and P6.5969 per kWh for biomass.
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