Up to 2,000 MW of renewable energy could be added to the country’s energy portfolio in ten years thanks to a new program being crafted by the Department of Energy (DOE) and the National Renewable Energy Board (NREB).
“We want to build 2,000 MW of RE in 10 years. DOE has already asked NREB to review the concept of giving an allocation to RE. DOE will make a green energy tariff rate that will be auctioned among them. We will put a ceiling and then they will compete on the rates. The lowest rates will win. It’s not per technology, but rather per type of technology, if peaking or mid-merit,” Energy Secretary Alfonso G. Cusi was quoted in a BusinessMirror report.
NREB is responsible for the recommendation of policies, rules, and standards concerning the implementation of the law, granting fiscal and non fiscal incentives to RE projects.
“We will finalize the policy after NREB has submitted its recommendation. Ang gagawin lang ng DOE is to allocate 2,000 MW in order to develop the RE industry,” Cusi added.
The proposed RE program is not the same as the feed-in-tariff (FIT) program.
“We are coming up with a green energy rate. This rate will be the present avoided cost of generation. How much is that, don’t ask me…It shouldn’t be expensive than what we are paying right now,” said Cusi.
Cusi has stated that the FIT era is already in the past.
“It is now a question of how we can foster a RE industry that is competitive and affordable,” he said.
FIT is an incentive program that aims to entice RE developers to invest at the first stage and fasten the deployment of RE.
For FIT Solar 1, the FIT rates are P9.68 per kWh and P8.69 per kWh; For FIT Wind 1 and 2, P8.53 per kWh and P7.4 per kWh; P6.63 per kWh for biomass; and P5.9 per kWh for run-of-river hydro .