The National Transmission Corp. (TransCo) has petitioned the Energy Regulatory Commission (ERC) for an increase in the feed-in-tariff allowance (FIT-All) of P0.1006 per kilowatt hour (kWh) beginning 2025 in place of the current P0.0838 per kWh.
The TransCo said the proposed 20 percent increase is enough incentive for power plants that secured benefits from the feed-in-tariff (FIT) and the green energy auction (GEA) programs of the government.
The FIT-All is extracted from electricity consumers as payment for the delivery of renewable energy (RE) from service providers. The rate is evaluated and allowed to adjust every year.
Both the FIT and the GEA were introduced to encourage the development of RE projects funded via the FIT-All.
TransCo said the P0.1006 per kWh rate was derived from the required P0.1162 per kWh for RE plants under FIT while projects under GEA-1 and GEA-2 had rates of minus P0.0013 per kWh and minus P0.0143 per kWh, respectively.
TransCo proposed the adjustment imposed starting January next year to allow the continued operations of RE power plants.
“…A delay in the approval of the proposed 2025 FIT-All rate and the denial of the prayer for provisional authority may lead to possible shortfall in the FIT-All fund, preventing TransCo to promptly and or fully pay the actual FIT revenue to eligible RE plants,” the state-run firm told the ERC.
“…The FIT-All guidelines state that any delayed or partial payment will incur interest which will eventually result in additional charges to end-users,” TransCo added.
TransCo also forecast renewable energy generation under FIT totaling 4,313 gigawatt hours in 2025, up 9.9 percent from this year’s forecast of only 3,926 GWh.
Renewable energy generation under GEA-1 is seen hitting 232 GWh next year, up 866.7 percent from this year’s 24 GWh.
The same is seen as high as 871.42 GWh under GEA-2 from this year’s 0.08 GWh.
