Unpaid FIT to renewable firms piling up—TransCo
by Alena Mae S. Flores – October 20, 2017 at 07:01 pm
from manilastandard.net
State-run National Transmission Corp. has asked the Energy Regulatory Commission to act on its pending applications, saying the renewable energy payment backlog is expected to reach P8 billion by the end of the year.
TransCo president Melvin Matibag said the company’s pending applications with the ERC for the feed-in tariff allowance adjustment covered 2017 and 2018.
“It’s already with them… we expect backlog to reach P8 billion this year,” Matibag said.
TransCo manages the FIT-All rate that is used to pay the eligible renewable energy developers under the FIT system, an incentive scheme that, among others, gives priority connections to grid, purchase and transmission of, and payment for generated power.
TransCo has a pending application to increase the feed-in tariff allowance by another P0.1051 per kWh for 2017, which is now under final consultations with the regulator.
TransCo also filed for a feed-in tariff allowance rate of P0.2932 per kilowatt-hour equivalent to P24.9 billion as payment to renewable energy developers mandated under the Renewable Energy Law of 2008 for 2018.
“After due notice and hearing, a FIT-All rate of P0.2932 per kWh for 2018 computed for RE projects with at least a nomination from DOE (Department of Energy) for eligibility under the FIT system (should) be approved,” TransCo said in its petition to the ERC.
The FIT guarantees all eligible renewable energy plants an entitlement to the applicable FITs for a period of 20 years.
ERC granted the following tariff rates for solar 1 at P9.68 per kWh, solar 2 at P8.69 per kWh, wind 1 at P8.53 per kWh, wind 2 at P7.40 per kWh, biomass at P6.63 per kWh and hydro at P5.90 per kWh.
TransCo said “the grant of a provisional authority would allow the company to perform its duties to make a timely payment of the FIT rate to RE developers to which they are entitled, thereby allowing their continued operations,” it said in its 23-page petition.
TransCo said the implementation of the FIT-All rate of the P0.2932 per kWh effective January 2018 “is without prejudice to the final actual rate pending final disposition of its present application.”
