The National Transmission Corp. (TransCo) has asked the Energy Regulatory Commission (ERC) for an increase in the 2024 feed-in-tariff allowance (FIT-All) to P0.0867 per kilowatt hour (kWh) from only P0.0364 per kWh at present.
Filed on 27 July, TransCo said the 138 percent adjustment is enough incentive for existing renewable energy plants securing benefits from the feed-in-tariff (FIT) and for those others that qualified under the Green Energy Auction (GEA).
The FIT-All, extracted from electricity consumers, pays a premium on power generated by renewable energy (RE) producers and adjusted every year to ensure performance.
Both the FIT and GEA were introduced by government to encourage the development of renewable energy projects using above-market rates funded by FIT-All revenue.
TransCo also said that of the P0.0867, the bulk or P0.0865 were for renewable energy producers under FIT while the remaining P0.0002 were for projects under GEA.
TransCo said rate adjustment that apply starting January next year will allow the continued operations of government-supported renewable energy power producers.
Electrical power generated by renewable energy plants under FIT next year is estimated at 4,264 gigawatt hours broken down into 1,282 GWh from biomass, 1,188 GWh from hydro, 748 GWh from solar and 1,046 GWh from wind.
Under the GEA, TransCo estimated 9 GWh for next year, all from biomass sources.
Monalisa Dimalanta, ERC chairperson, earlier said the suspension of the feed-in tariff collection is under evaluation for possible extension beyond August this year.
The tariff has been in suspension since December last year as temporary relief for power consumers.
Nevertheless, Dimalanta warned that since prices at the Wholesale Electricity Spot Market has trended down, the tariff’s pool of funds is being used up and may have to be replenished.
