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Back You are here: Home Politics Funding & Incentives Philippines approved feed-in tariff rates for renewable energy

Funding & Incentives

Philippines approved feed-in tariff rates for renewable energy

NPhilippines approved feed-in tariff rates for renewable energy
Rates were set for solar, wind, biomass and hydropower

The long-awaited feed-in tariff rates for renewable energy sources in the Philippines are approved by its Energy Regulatory Commission, a move that is expected to move the country towards a “green” direction.

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The price for solar power was set at P9.68 per kilowatt hour, wind power at P8.53/kWh, biomass at P6.63/kWh and hydro at P5.90/kWh. There is no rate set for power from ocean thermal energy conversion resources as it is still subject for further study.

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Greenpeace Southeast Asia welcomes the approval, saying that “this is a crucial step towards the full-scale implementation of our vision of a renewable energy revolution in the country.”

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“There are no reasons to proceed with more coal power projects,” the group said.

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“Now that the F.I.T. rates are passed, the country can now increase its renewable targets and become 50 percent clean energy dependent by 2020,” said Anna Abad, Climate and Energy Campaigner at Greenpeace Southeast Asia in a statement.

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Under the provisions of the Renewable Energy Act of 2008, tariffs for wind, solar, run-of hydro, biomass and ocean resources must be implemented in able to promote the country’s development, utilization and commercialization of renewable energy resources.

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The mandated F.I.T. rates are notably lower than those proposed by the National Renewable Energy Board last year – P17.95/kWh for solar, .37/kWh for wind, P7/kWh for biomass and P6.15/kWh for hydro – but the E.R.C. remains optimistic that the rates will encourage the development of renewable energy projects in the country.

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"The E.R.C.s lowered F.I.T.s will definitely cushion the impact of implementing the F.I.T. incentive mechanism under the R.E. Act on the electricity rates, while still being sufficient enough to attract new investments in renewable energy. This is win-win for all," said E.R.C. executive director Francis Saturnino Juan.

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The approved subsidy will be reviewed and readjusted, if necessary, after its three-year initial implementation or when the target installed capacity for each renewable resource set by the Department of Energy has been met.

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According to a 2008 study by the Renewable Energy Coalition, the Philippines has a renewable energy potential of 204,288 megawatts from its solar, geothermal, hydroelectric, wind, ocean and biomass resources. – C. Dominguez

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