THE installation allotments of 250 megawatts (MW) each for hydro and biomass renewable energy (RE) are still not yet fully subscribed despite a two-year extension of the feed-in-tariff (FIT) incentive scheme.
As of March, there is still a balance of 105.39MW out of the 250MW capacity allotted by the Department of Energy (DOE) for hydro. For biomass, the balance stood at 29.435MW out of 250MW.
The Department of Energy (DOE) earlier extended the installation target for hydro and biomass up to December 31, 2019 or until full subscription, whichever comes first. The agency explained that hydro power projects usually have long gestation periods, starting from construction up to commercial operation.
For hydro, 144.61MW out of the 250MW installation target had been filled up as of end-March this year, leaving a balance of 105.39MW.
Based on data, five hydro projects (34.60MW) were approved for a FIT rate of P5.90 per kilowatt hour (kWh); one project (8.50MW) with a FIT rate of P5.8705 per kWh; and seven projects (101.51MW) with a still undetermined FIT rate.
All 13 hydro projects were endorsed to the Energy Regulatory Commission (ERC).
For biomass, data shows there are 26 projects, with a total of 220.565MW out of the 250MW installation target.
Thirteen projects, with a capacity of 117.351MW, carried a FIT rate of P6.63 per kWh. Four projects, with a total capacity of 14.564MW, were granted a FIT rate of P6.5969 per kWh. The FIT rate, meanwhile, for nine biomass projects (88.65MW) has yet to be determined by the ERC.
The 26 biomass projects secured certificates of endorsement from the ERC.
The FIT rate is basically an incentive in the form of fixed rate per kWh meant to encourage developers to invest at the initial stage and hasten deployment of RE.
The ERC earlier 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.
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