‘Missionary’ RE developers get perks from PSALM
By Brix Lelis – April 10, 2025 | 12:00am
from The Philippine Star
MANILA, Philippines — State-run Power Sector Assets and Liabilities Management Corp. (PSALM) last year distributed P455.45 million in cash incentives to renewable energy developers serving remote areas across the country.
The funding was sourced from the Universal Charge for Missionary Electrification (UC-ME), a non-bypassable charge imposed on power consumers to support electrification programs and projects in missionary areas.
PSALM disbursed the UC-ME Renewable Energy Developers’ Cash Incentive (REDCI), which is billed from electricity end-users to incentivize developers of green projects.
The recipients include Romblon Electric Cooperative Inc. (ROMELCO), Oriental Mindoro Electric Cooperative Inc. (ORMECO), Sunwest Water and Electric Co. Inc. (SUWECO), Philippine Hybrid Energy Systems Inc. (PHESI), Ormin Power Inc. (OPI) and SUWECO Tablas Energy Corp. (STEC).
ROMELCO and STEC operate a 1.3-megawatt mini-hydro and eight-MW hydropower plants, respectively, in Romblon, while SUWECO owns hydro projects with a total capacity of 3.6 MW in Catanduanes.
In Oriental Mindoro, among the operating RE plants are ORMECO’s 5.1-MW hydro facilities, PHESI’s 16-MW wind farm and OPI’s 10-MW mini-hydropower asset.
According to PSALM, the cash incentives would help the developers cover their operational expenses, ensuring the financial viability of their respective projects.
Total disbursements to RE developers have reached P1.51 billion since 2014, benefiting around 325,000 households in the country’s far-flung and underserved communities.
“Through the UC-ME REDCI, PSALM continues to make significant strides in delivering sustainable and affordable electricity to the Philippines’ most remote areas, thereby fostering the growth and prosperity of rural communities,” it said.
The National Grid Corp. of the Philippines and the distribution utilities collect the UC from power consumers monthly. The collections are then remitted to PSALM every 15th of the following month.
Effective February 2025 billing period, the UC-ME rate has increased to P0.1993 per kilowatt-hour from P0.1822 per kWh previously, pursuant to an Energy Regulatory Commission order granting interim relief for the adjustment.
Based on the latest Department of Energy data, around seven to eight percent of areas in the country had no access to electricity.
Energy Undersecretary Rowena Cristina Guevara has said the government would need at least P100 billion in funding to achieve 100 percent household electrification by 2028.
