The National Transmission Corp. (TransCo) has asked for an increase in the feed-in-tariff allowance (FIT-All) in 2024 to P0.0867 per kilowatt hour (kWh) from the current P0.0364 per kWh.
In a filing to the Energy Regulatory Commission (ERC) docketed last July 27, TransCo said the 138- percent increase will provide enough incentives for power plants that secured benefits from the feed-in-tariff (FIT) as well as those which qualified for the Green Energy Auction (GEA).
FIT-All is the premium for renewable energy (RE) projects that received incentives from the government. The rate is adjusted yearly after evaluation.
Both FIT and GEA were introduced by the government to entice the development of RE projects by providing rate incentives that will be funded via the FIT-All.
TransCo said in the filing that of the P0.0867, bulk or P0.0865 will be for RE plants under FIT while the remaining P0.0002 will be for projects under GEA.
TransCo wants the rate adjustment implemented starting January to allow the continued operations of government incentivized RE power plants.
The agency in the filing said for 2024, the total energy generation of RE power plants under FIT is at 4,264 gigawatt hours (GWh): 1,282 GWh from biomass, 1,188 GWh from hydro, 748 GWh from solar and 1,046 GWh from wind.
Transco said generation of RE plants will reach 9 GWh next year, all from biomass sources.
Monalisa Dimalanta, ERC chairperson, earlier said studies are being done to determine if suspension of FIT-All collection may be extended beyond August.
FIT-All collection has been suspended since December last year as a temporary relief.
However, since prices in the Wholesale Electricity Spot Market is now on a downward trend, ERC sees the need to collect FIT-All as its current pool of funds is nearly used up. – Jed Macapagal
