Probably as the local energy sector’s most anticipated highlight of the year, the release of the Philippines’ feed-in tariffs (FITs) by the Energy Regulatory Commission (ERC) has been met with both excitement and slight disappointment. Just announced last Friday, the FITs are a step up for the country towards a renewable and cleaner energy future. In terms of excitement, the FITs are expected to draw in much-needed investors into the country. As for the slight disappointment, the approved rates released were lower than those proposed months ago.
The approved FIT rates are as follows: hydro, P5.90; biomass, P6.63; wind, P8.53; solar, P9.68. As compared to the proposed rates, a slight decrease can be observed: hydro, P6.15; biomass, P7.00; wind, P10.37; solar, P17.95. It should also be noted that no rate for ocean thermal energy has been issued. The reason for this, according to the National Renewable Energy Board is that more studies are needed in order to come up with a feasible figure.
According to Tetchie Capellan, Philippine Solar Power Alliance head, the following 12 months after the release of the FIT rates would show the viability of it attracting investors. If tracked, several foreign investors have already shown interest on setting up multiple renewable energy projects in the Philippines these past few months. The only thing that such firms didn’t push through with their said start-ups is the lack of compensation for providing electricity to a grid.