DOE eyes FIT extension for biomass, run-of-river

The Department of Energy (DOE) is likely to extend the feed-in tariff (FIT) allocation for biomass and run-of-river technologies by another three years, a ranking official said.

A draft for the FIT allocation extension has been submitted for signing by Energy Secretary Alfonso Cusi, DOE Undersecretary Felix Fuentebella said.

“We’re looking at three years or until the capacity for run-of-river hydro or biomass is filled up, whichever comes first,” he said.

Last year, the DOE –through the Renewable Energy Management Bureau (REMB) – started advising hydropower and biomass developers to look for offtakers as the FIT was set to expire on Dec. 31, 2017.

If signed, it would mean the developers can fill up the remaining allocation biomass and run-of-rive hydropower plants until 2020.

Originally, runof-river hydro was approved a rate of P5.90 per kilowatt-hour (kwh) and biomass with a rate of P6.63 per kwh. Each technology was allotted an installation target of 250 MW.

The FIT rates have already been lowered to P5.8705 per kwh for runof-river hydro and to P6.5969 per kwh for biomass effective this year.

Latest DOEREMB data showed a total of 28.6976 MW have been taken up by existing run-of-river hydro projects, while 144.80 MW hve been consumed by completed biomass plants as of end-2016.

However, DOE director Mario Marasigan said there are a number of biomass projects that met the end2017 deadline originally set by government.

Following requests from developers, the National Renewable Energy Board (NREB) submitted to the DOE its recommendation for the extension of the FIT program for the two technologies.

Philhydro Association Inc., composed of hy- dropower developers, manufacturers, construction companies and consultants, asked the DOE to clarify the FIT for run-of-river hydropower since its installation target “has not been fully subscribed due to factors beyond the developers’ control.”

The top hurdle for run-of-river developments is securing clearance from the National Commission on Indigenous Peoples (NCIP) because of the long process to get their consent for water permit.

Power developers have also stressed that runof-river hydro projects are long gestation develfor opments that will cover the period to secure permits and undertake studies, therefore they need more time for completion to avail of FIT perks.

Meanwhile, feedstock is the main challenge for biomass developers. Other challenges include the lack of technology and financing.