Manila, Philippines --- (METERING.COM) --- August 3, 2010 - The Energy Regulatory Commission (ERC) last week issued the rules for a feed-in tariff which, it is hoped, will catalyze the development of the country’s renewable energy resources and facilitate more investment in the energy sector.
The FIT rules establish the FIT system and offers guaranteed payments over a 20-year period to renewable energy developers utilizing energy sources including wind, solar, run of river hydro, biomass and ocean, or some combination of these.
Under the FIT rules, the National Grid Corporation of the Philippines (NGCP) and the distribution utilities are mandated to connect renewable energy facilities to the grid and to take in the energy generated by these plants.
All electricity end users are required to pay a uniform Peso/kWh charge as a feed-in tariff allowance (FIT-All), which will be placed in a fund from which the payments to renewable energy developers will be paid. This FIT-All, which will be determined annually, will appear as a separate line item on customers’ bills.
“With the FIT system embodied in the ERC’s FIT rules we hope to have a sound regulatory framework that is responsive to renewable energy market development,” commented ERC executive director Francis Saturnino C. Juan. “With this in place we anticipate that renewable energy projects will become more bankable as these projects’ future cash flows are fixed and assured.”