Malampaya fund eyed for solar rooftop installation

Malampaya fund eyed for solar rooftop installation
Reference: http://www.mb.com.ph/malampaya-fund-eyed-for-solar-rooftop-installations/

The Department of Energy (DOE) is eyeing large-scale solar rooftop installations of up to 1,000 megawatts nationwide that shall be bankrolled by the Malampaya fund.

In a press conference, Renewable Energy Management Bureau Director Mario Marasigan noted that the extent of funding will be at P150 million per megawatt. So for the aggregate target installations, such could merit huge financing of P150 billion stretched over several years.

Marasigan noted that the scale of solar rooptop projects that may be considered for Malampaya funding shall be from 100 kilowatts and higher and the ideal jumpstart point will be schools and universities.

“At the moment, there’s no fixed number because we have not accounted everything yet…we’re looking at 1,000 megawatts installation, total,” the energy official noted.

The flip-side of the project proposal is that the cost of the electricity generated from such installations when offered to the grid will be P2.00 per kilowatt hour (kWh) cheaper compared to the prevailing rate being passed on to consumers by distribution utilities.

He said the projects will not be intended for net metering system at initial phase. However, in a timeframe that will be determined in the DOE’s project concept, they may eventually be allowed to participate in the program.

As to the funding requirements per year, Marasigan noted that the details are still being fleshed out, including the areas where installations must be prioritized.

The financing scheme, he further explained, will be for third party entities to tap the Malampaya fund and there would be repayment terms for the availments.

“At the introductory phase, these solar rooftop installations will not be part of net metering yet. We will look for a third party to implement and then what will happen here is that, the third party will sell its generation at least P2.00 per kWh lower than the distribution price,” Marasigan stressed.

He mentioned a cost reference of P10 to P11 per kWh as pass-on cost of DUs, but that already covered even other charges such as generation, transmission and even taxes.

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