Developers of run-of-river power-generation plants will have more time to finish their projects to qualify for the feed-in-tariff (FiT) that guarantees payment for their capacity output for 20 years.
Energy Secretary Alfonso G. Cusi said last week that his office would extend the deadline from December 2019 until such time the 250-megawatt (MW) installation target is filled up.
“Run-of-river FIT will be extended to complete [the] 250-MW target, until it is full,” said Cusi.
For now, Cusi said, “less than 100-MW” of capacity out of the 250-MW installation target for run-of-river hydro project were able to secure a FiT rate of P5.90 per kilowatt hour (kWh).
This would be the second extension to be allowed by the DOE. The 250-MW installation target for run-of-river hydropower and biomass, respectively, expired at end-2017. However, since installation target was not fully subscribed, the agency extended this until end-2019.
The Philhydro Association Inc. had said that the main cause for the delay in the completion of projects has been the difficulty in securing permits from various national and local government agencies, in particular, the water permit and FPIC (Free and Prior Informed Consent) with the indigenous people.
Most of the three years allotted for the FiT installation target, said the group, was consumed by the permitting process alone.
Cusi said that only run-of-river hydropower projects would be extended again.
DOE-Renewable Energy Management Bureau director Myleen Capongcol said the 250-MW installation target for biomass will “most likely be met.” “So far, the 100-percent nearly completed projects are mostly biomass. For run-of-river, it’s probably only less than half,” said Capongcol.
The Energy Regulatory Commission approved a FiT rate of P5.90 per kWh for run-of-river hydro covering an installation target of 250 MW in 2012. The regulator then reduced the run-of-river hydro feed-in-tariff to P5.8705 per kWh for projects completed in January to December 2017 after reviewing and implementing the 0.5-percent digression rate.
The ERC also approved a feed-in tariff-rate of P6.63 per kWh for biomass in 2012, but reduced it to P6.5969 per kWh in 2017 to reflect the digressed rate for projects completed within the year.
Image credits: PHOTO FROM THE WEB SITE OF ABOITIZPOWER