Group: ERC must set higher GEAR rate for floating solar

BY LENIE LECTURA – MAY 12, 2023
from Business Mirror

The Philippine Solar and Storage Energy Alliance (PSSEA) is asking the Energy Regulatory Commission (ERC) to set a higher Green Energy Auction Reserve (GEAR) price for floating solar technology.

“The PSSEA respectfully prays that the Honorable Commission considers P7.3661 per kilowatt hour (kWh) as GEA-2 GEAR price for solar PV on water and for the removal of SESC (Solar Energy Service Contract) as one of the requisites for the solar developers,” the group said in a filing with the ERC.

The agency is currently holding public consultations on the proposed GEAR price for rooftop solar at P4.7156 per kWh; ground-mounted solar, P4.2395 per kWh; floating solar, P4.7565 per kWh; wind, P5.9823 per kWh, and biomass, P5.1475 per kWh.

The ERC sets prices for the government’s GEA program to ensure the lowest price for renewable energy sources.

PSSEA said that unlike in ground-mounted solar, solar PV on water incurs additional costs in construction and operations, including but not limited to, installation of floaters, anchoring and mooring of the system. These systems, it added, are the unique features of floating solar and are indispensable in keeping it in its place.

Compared to ground-mounted solar, PSSEA said floating solar incurs at least a 20 percent higher project cost. It urged the ERC to set a floating solar GEAR price that is reflective of the cost incurred in the entire value chain.

“The GEAR price for solar PV on water must be significantly higher than ground-mounted. Allocating a GEAR price for solar PV on water equivalent to or less than the ground-mounted solar will negate the purpose of GEAP and defeat the spirit of the GEAR rules in supporting the development of new renewable energy projects under a competitive process.”

Also, under current rules, only solar developers with SESC can register to participate in GEAP. PSSEA said this should be reviewed.