2015/04/30

ERC approves new rate for solar projects

ERC approves new rate for solar projects
By Alena Mae S. Flores

The Energy Regulatory Commission approved a solar feed-in tariff of P8.69 per kilowatt for an additional capacity of 450 megawatts.

ERC said it based the new rate on total project cost, engineering, construction and procurement cost, net capacity factor, switchyard and transformers, transmission interconnection cost, equity internal rate of return, peso and dollar exchange rate, inflation and consumer price index.

The regulator said in a resolution solar plants commissioned prior to the new solar feed-in tariff rate would continue to enjoy the original feed-in tariff rate of P9.68 per kWh.

The additional 450 MW brought the solar installation in the country to 500 MW.  Only solar projects that qualified for the first 50 MW and endorsed by the Energy Department would qualify for the original rate.

“It shall be effective immediately after the publication of the resolution adopting the same. To align the same with the DOE’s certification dated April 30, 2014, the new solar FIT shall be valued until March 15, 2016,” ERC said in a decision.

The agency said it computed the total plant cost for solar at $1.958 million per megawatt, or within the capital costs of ground mounted solar plants based on the report of REN21 entitled Renewables 2014 Global Status Report.

The National Renewable Energy Board earlier proposed a feed-in tariff rate of less than P9.10 per kWh for the additional 450-MW solar installation.

NREB vice chairman Ernesto Pantangco earlier said many solar developments had applied for feed-in tariff rates, or the preferential rates for renewable energy projects.

NREB is the implementing agency of the Renewable Energy Act of 2008, which ushered in the entry of renewable energy power projects in the country.