A group of run-of-river (ROR) hydropower developers is urging the government to consider real-world operating conditions as it sets new feed-in-tariff (FIT) incentive rates for upcoming ROR projects.
Under the FIT system, renewable energy developers receive fixed power rates, but only if their projects are completed before the government’s capacity quota is filled. The current quota for ROR hydro is 113.711 megawatts.
At a summit in Quezon City on Tuesday, the Philhydro Association Inc. said the new FIT rates should be based on actual average capacity factors — a measure of how much energy a plant produces compared against maximum possible output. Developers argue this is essential because ROR plants depend on natural water flow, which varies throughout the year.
Philhydro said regulators now have enough verified data from existing ROR plants to use realistic capacity factors in computing new FIT prices. The group also urged the government to account for contingency costs, noting that ROR projects are highly exposed to weather shifts, climate risks, and natural disasters, and typically require at least three years to build.
