RE developers explore FIT inclusion of big hydro and geothermal plants
The jury is still out, but a recentlyissued Circular of the Department of Energy (DOE) has been providing an opening for the renewable energy (RE) developers to ask for a concession that the conventional geothermal and big hydro developments be included under the feed-in-tariff (FIT) incentive scheme.
When asked on this matter, Energy Secretary officer-in-charge Zenaida Y. Monsada has assured that such proposal will be thoroughly studied before any decision on the policymaking front shall be firmed up.
“The body initiating discussions on FIT proposals is NREB (National Renewable Energy Board), so it started with them but we have to look at that,” she said.
The DOE Circular (DC2015-07-0014) sets a policy tone on the ‘wholistic implementation of the FIT system” so the country can maintain a 30-percent share of renewable energy on its power mix.
The circular framers under former Energy Secretary Carlos Jericho L. Petilla may have attempted to become ‘masters of subtlety’, but their intent is now turning obvious with the intensified lobby on the inclusion of geothermal and hydro to be part of the FIT system.
Monsada has explained that the FIT incentive for RE “is really to encourage investors, so we will have to see if it is necessary, we’ll have to evaluate. We have been doing things on the policy sphere on a piecemeal basis because what we see as necessary as of that time, that was the FIT that’s given.”
This early though, it is opined that policy proposition on FIT-underpinned geothermal and big-ticket hydro projects could be in contravention of the Renewable Energy Act and its implementing rules and regulations. Under the law, it shall only be the emerging RE technologies that shall be incentivized with correspondingly-approved FITs.
Monsada thus qualified that “the policy decision shall still depend on what the RE Law provides. It will have to go through comprehensive discussions and consultations before any decision will be arrived at.”
She added that “the NREB will be a major part of the discussions” – and from what they can come up with, recommendations will eventually be lodged with the energy department.
The basis of the 30-percent share of RE in the power mix, Monsada has noted previously, shall be the installed capacities of power facilities. Referencing on that, it shall entail up to 5,000 megawatts or higher then that could be integrated in the FIT system.
It was not clear under the DOE Circular if its propounded ‘wholistic FIT application’ will just cover emerging technologies or even the traditional ones shall be part of it.