The National Transmission Corp. (TransCo) is seeking a 20-percent increase to the feed-in-tariff allowance (FIT-All) in 2025.
TransCo asked the Energy Regulatory Commission to approve the proposed rate of P0.1006 per kilowatt hour (kWh) from the current P0.0838 per kWh.
In a filing to the ERC docketed last July 31, TransCo said the increase will be an incentive for power plants that secured benefits from the feed-in-tariff (FIT) and the Green Energy Auction (GEA).
FIT-All is sourced from all electricity consumers to pay the premium for renewable energy (RE) projects that received incentives from the government.
FIT and GEA were introduced by the government to entice development of RE projects by providing rate incentives that will be funded via the FIT-All.
TransCo said the P0.1006 per kWh rate was derived from the required P0.1162 per kWh for RE plants under FIT while projects under GEA-1 and GEA-2 had negative rates at -P0.0013 per kWh and -P0.0143 per kWh, respectively.
TransCo wants the rate adjustment starting January next year to allow the continued operations of government incentivized RE power plants.
“…A delay in the approval of the proposed 2025 FIT-All rate and the denial of the prayer for provisional authority may lead to possible shortfall in the FIT-All fund, preventing TransCo
to promptly and or fully pay the actual FIT revenue to eligible RE plants,” the state-run firm said in its application to the ERC.
“…The FIT-All guidelines state that any delayed or partial payment will incur interest which will eventually result in additional charges to end-users,” TransCo added.
TransCo said for 2025, total energy generation of RE power plants under FIT is at 4,313 gigawatt hours (GWh), up by 9.9 percent from this year’s forecasted 3,926 GWh.
As for generation of RE plants under GEA-1, TransCo said it will reach a total of 232 GWh next year, up by 866.7 percent from this year’s 24 GWh and will jump to as much as 871.42 GWh for those under GEA-2 from this year’s mere 0.08 GWh.
