DOE issues guidelines on RE incentives

MANILA, Philippines - The Department of Energy (DOE) has issued the guidelines for the selection process of renewable energy (RE) projects eligible for incentives under the so-called Feed-In Tariff (FIT) system.

Part of the requirements for FIT eligibility is the successful commissioning of a renewable energy plant, the  DOE said.

In a circular, Energy Secretary Carlos Jericho Petilla said only RE developers with valid Renewable Energy Service Contract (RESC) may apply for eligibility and inclusion of their projects under the FIT system.

The FIT regime is a form of incentives for renewable energy players by way of a guaranteed fixed price for a given period for their supply of energy.

The FIT rate approved by the Energy Regulatory Commission (ERC), the power regulator are as follows: P9.68 per kilowatt-hour for solar; P8.53 per kWh for wind, P6.63 per kWh for biomass and P5.90 per kWh for hydropower projects.

The DOE shall complete the processing of the Declaration of Commerciality under the FIT system within 30 working days from the receipt of the project application, Petilla said.

“The RE developer shall be responsible in securing other regulatory requirements and the necessary permits in relation to its obligations under the RE guidelines and the provisions of the RESC consistent with its work plan,” Petilla also said.

He said an RE developer must have work commitments for a period of five years under the development stage with corresponding cost estimate and shall specify the date of commissioning and commercial operating of the project.

Furthermore, he said the DOE would only issue a Confirmation of Commerciality under the FIT system for projects that have complied with the requirement for conversion from the pre-development stage to development stage. This, he said, shall serve as notice to proceed to the construction phase.

“Only RE developers holding Certification of Confirmation of Commerciality shall be issued Certificate of Endorsement for FIT eligibility,” Petilla said.

To be eligible for the FIT endorsement, the RE developer should inform the DOE on the date of the successful commissioning of the RE plant.

Upon validation of the successful commissioning of the plant, the DOE should within 15 working days issue a COE for FIT eligibility to the ERC on a first-come-first serve basis, Petilla said.