ERC extending submission of feed-in-tariff computations
MANILA – The Energy Regulatory Commission (ERC) extended for the third time the deadline for submission of feed-in tariff computations for renewable energy projects by the National Renewable Energy Board (NREB).
ERC Executive Director Francis Saturnino Juan told reporters that NREB was allowed to submit the feed-in tariff computation until March 31, 2011.
“Within the first quarter, they are expected to submit the recommended feed-in tariff levels,” Juan said.
The feed-in tariff offers guaranteed payments over a definite period of time to developers of wind, solar, run-of-river hydro, biomass and ocean as source of energy.
ERC will issue a decision within three months after receiving the NREB filing, recognizing that investors are earnestly awaiting the release of the feed-in-tariff.
“Our pronouncement is we will finish the evaluation and hearing proper within a three-month period also. So we’re looking at the second quarter of 2011 to issue the feed-in tariff for the different technologies,” the ERC official said.
He said NREB asked for another extension because it has only recently been able to complete the composition of the NREB. The board also asked for time to study the feed-in-tariff and the computations per renewable energy source.
ERC originally set a deadline of Aug. 4 for the submission of the FIT computations but NREB asked for a 60-day extension until Nov. 4. NREB was supposed to submit the FIT computation by Dec. 4 but asked for another extension of up to March next year.
ERC released last July the final feed-in tariff rules that the regulator hoped would facilitate the entry of more investments into the energy sector.
Juan said they had yet to tap the assistance offered by the Asian Development Bank for the evaluation of the feed-in-tariff computations. ADB has also offered to finance renewable energy projects particularly wind, solar and hydro projects.
“Right now, a technical assistance was extended to us by the ADB for the evaluation of the FIT. But we have yet to use it, because that technical assistance was supposed to be disbursed in the fourth quarter of 2010, as we expected the NREB to submit the FIT levels by the third quarter,” he said.
ERC rules provides that electricity users are “obliged” to pay a uniform peso per kilowatt hour charge referred to as the Feed-in Tariff Allowance (FIT-All) which will be collected and placed in a fund to be administered by National Grid Corp. of the Philippines.
The FIT-All will be included in the transmission billing statement as a separate line item. National Grid will use the fund to pay the renewable energy developers depending on the feed-in-tariff for each renewable energy source.
The Energy Department has approved P87.735 billion worth of renewable energy projects following the passage of the Renewable Energy Law in 2008. Most of the project proponents are waiting for the feed-in tariff before proceeding with their projects.*PNA
