The Energy Regulatory Commission (ERC) has approved a new Feed-in Tariff (FIT) rate of PHP 6.9282 per kilowatt-hour (kWh) for the fourth round of run-of-river (ROR) hydropower projects, valid until December 31, 2026. The rate will degress by 0.5% annually until the 100-megawatt (MW) installation target is fully subscribed.

The move comes after the ERC received requests from the Philhydro Association, Inc. and the Department of Energy (DOE) earlier this year to determine the FIT rate for the additional 100 MW target. Public consultations held in November 2025 drew submissions from major players including Aboitiz Power Corporation, Mangima Hydro Power Corporation, RCDG Construction Corp., and the DOE.

According to DOE data as of October 31, 2025, the previous 250-MW FIT allocation was fully subscribed with 31 projects totaling 256.878 MW. The ERC said it considered these figures, along with stakeholder inputs and policy objectives under the Renewable Energy Act of 2008, in setting the new rate.

“The Commission has formally adopted the FIT rate for the 4th round of run-of-river (ROR) hydropower, marking another step in the country’s renewable energy (RE) development to achieve the energy mix of 35% by 2030,” ERC Chairperson Nino Juan declared.

The FIT mechanism is designed to encourage investments in renewable energy, providing long-term incentives for developers while supporting the Philippines’ goal of energy security and self-reliance.

How will this latest FIT round affect the pace of ROR hydropower projects and the broader energy mix in the Philippines? Share your thoughts.

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Originally scheduled for December 15, 2025; published today due to temporary site downtime