TransCo seeks smaller feed-in tariff rate for 2020

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Wind and biomass have the biggest share in the power mix projected from renewable energy sources. -- BW FILE PHOTO

STATE-LED National Transmission Corp. (TransCo) is asking the energy regulator for provisional authority to implement starting January a feed-in tariff allowance (FiT-All) rate of P0.2278 per kilowatt-hour (kWh) for 2020 ahead of the hearing on the merits of its application.

FiT-All, a uniform charge in pesos per kilowatt-hour, is payable by all electricity users that is calculated and set annually.

Distribution utilities, system operator National Grid Corporation of the Philippines, and retail electricity suppliers serve as collecting agents.

The proceeds go to the FiT-All fund, which is being administered by TransCo.

The FiT-All mechanism was established under Republic Act. No. 9513, or the Renewable Energy Act of 2008, to help spur the development of emerging renewable power sources such as wind, solar, run-of-river hydropower and biomass.

In its application, TransCo said it arrived at the FiT-All based on a factors that include the forecast annual required revenue of eligible renewable energy plants, the previous year’s over and under recoveries, forecast annual electricity sales. It said it also took into account “other relevant factors to ensure that no stakeholder is allocated with additional risks in the implementation of the [feed-in tariffs].”

The application is dated July 17, which is days ahead of the end-July deadline for each year.

TransCo has yet to receive ERC approval for the P0.278/kWh rate it applied for 2019 “or the updated amount at the time of evaluation.”

TransCo expects renewable energy power plants to generate a total of 4,098,632 megawatt-hours (MWh) in 2020, 20% more than the 3,413,468 MWh projected for 2019. Of the forecast power generation, biomass plants and wind farms are expected to account for the biggest share with 1,465,170 MWh and 1,086,589 MWh, respectively. — Victor V. Saulon