The recent release of the feed-in tariff (FIT) rates last Friday has brought upon much anticipation on the potential investors that may be made available in the Philippines. However, the released rates were surprisingly lower than the figures proposed months before. This rather surprising change in turn has been met with a haphazard and bleak outlook that may eventually lose out on investor renewable energy projects interest.
The released rates, hydro, P5.90; biomass, P6.63; wind, P8.53; solar, P9.68; pale in comparison to the original rates proposed before (hydro, P6.15; biomass, P7.00; wind, P10.37; solar, P17.95). The biggest rate adjustment may be seen in solar, which can be considered as an energy source made readily available in a tropical country such as the Philippines. The effect of this change may not even cover the costs of maintaining a solar farm, making such a project a costly endeavour. The wind rate adjustment may barely create a break-even investment, with the price optimised to an area’s wind energy production.
The next 12 months may prove otherwise, if there are indeed investors willing to go for the approved FIT rates. A viable yet needed to be researched upon area of investment is Mindanao, a land known for its large and inconvenient power outbursts.