The National Renewable Energy Board (NREB) is seeking a new feed-in-tariff (FiT) rate of P7.93 per kilowatt-hour (kWh) for wind projects.
According to Energy Secretary Carlos Jericho L. Petilla, NREB formally asked the Energy Regulatory Commission (ERC) to adopt its proposed rate early this month.
“They re-filed. This, however, is still subject to ERC approval,” Petilla said on Sunday.
NREB Chairman Pedro H. Maniego Jr., when sought for comment, confirmed on Monday that the “NREB filed a lower wind FiT rate with the ERC last June 11.”
“ERC to set hearing on this,” Maniego added.
The current FiT rate for wind projects is P8.53 per kWh. “But knowing the ERC, it won’t give more than P8. So, it’s going to be lower than P8,” Petilla said.
The ERC is currently evaluating a “reasonable” new FiT rate.
The FiT is the per-kWh rate that will be guaranteed to renewable- energy developers to ensure the viability of their projects. Consumers shoulder the tariff through a new line item in their electricity bills. They are now paying an additional P0.0406 per kWh.
The NREB is asking for an adjustment in FiT rates for wind projects to accommodate the increased capacity allocation of wind-power projects from 200 megawatts to 400 MW.
The board is the body tasked by the Renewable Energy Act of 2008 to recommend policies, rules and standards to govern the implementation of the law, which granted fiscal and nonfiscal incentives to renewable-energy projects.
According to Energy Director Mario Marasigan, the additional allocation will help augment the needed capacity up to 2016, since wind-installation target is already subscribed. Earlier, the ERC approved the adoption of a new FiT rate of P8.69 per kWh for solar energy projects. The change in rate for solar follows after approval to increase capacity allocation from 50 MW to 500 MW was sought.
In 2012 the ERC approved the following FiT rates for renewable energy. These are P6.63 per kWh for biomass; P8.53 per kWh for wind; P5.90 per kWh for run-of-hydro; and P9.68 per kWh for solar.