The Energy Regulatory Commission (ERC) under the Department of Energy (DOE) has allocated an additional 100 megawatts (MW) of capacity for run-of-river (ROR) hydro projects under the feed-in-tariff (FIT) scheme. This brings the total available capacity for ROR hydro under FIT to 113.711 MW, including a balance of 13.711 MW from a previous allocation.
ERC director Sharon Montaner said the ERC will now set a justified incentive price for the new capacity. The FIT program, launched in 2011, guarantees fixed rates to renewable energy developers who complete projects before capacity quotas are filled, encouraging private sector investment.
The DOE plans to phase out the FIT system by 2028 and shift to an auction-based rate for renewable technologies. Current FIT rates for ROR hydro vary by project completion date, ranging from ₱5.90 per kWh for early projects to ₱5.99 per kWh for those finishing in 2025.
Incentives under FIT are funded by a surcharge of ₱0.1189 per kWh collected from electricity consumers. As of July 2025, the ROR hydro contributes approximately 940 MW, or 3 percent, of the country’s grid-connected capacity of 31,701 MW.
