MANILA, Philippines - The National Renewable Energy Board (NREB) has been given an extension until March 31, 2011 to come up with a proposed feed-in tariff (FIT) for renewable energy projects, Energy Regulatory Commission (ERC) executive director Francis Saturnino Juan said.
NREB is the government agency tasked with overseeing the implementation of the Renewable Energy Act of 2008, which was crafted to spur investments in green power sources such as solar, wind, ocean, run-of-river hydroelectric and biomass projects.
Renewable energy normally entails higher project costs, prodding government to give out incentives to investors through the FIT.
To ensure a guaranteed return on investments, NREB is tasked to determine the appropriate tariff levels for different renewable energy projects over a set period. Once completed, the FIT would be subject to the approval of the ERC.
Based on draft rules issued by the ERC, consumers would have to shoulder the FIT of renewable energy projects under a uniform fee similar to the universal charge now being reflected in consumers’ electric bills.
The amount collected from this tariff will then be distributed to renewable energy developers based on their respective approved FIT.
Juan said it would likely take three more months for the ERC to decide on the proposed FIT.
“The ERC granted the extension. Within the first quarter, they (NREB) are expected to submit the recommended feed-in tariff levels. Our pronouncement is we will finish the evaluation and hearing proper within a three-month period also. So we’re looking at the second quarter of 2011 to issue the feed-in tariff for the different technologies,” he said.
He said the ERC received assistance from the Asian Development Bank (ADB) to be able to properly and effectively decide on the FIT. “Right now, a technical assistance was extended to us by the ADB for the evaluation of the FIT.”