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12 March 2010

Philippines to speed up renewable energy projects

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The Energy Regulatory Commission (ERC) has released the draft rules for the feed-in-tariff for renewable energy (RE) projects, the Manila Times reported.

Zenaida Cruz Ducut, ERC chairman, said the draft rules, which would undergo public consultations, would fast track the development of green energy sources in the country.

The said tariffs represent the guaranteed rate that proponents of RE projects will be paid for the energy they will produce.

The tariff scheme is one of the incentives under the Renewable Energy Act of 2008, which seeks to promote and encourage the development of alternative and sustainable sources, such as solar, wind, ocean, run-of-river hydroelectric and biomass.

Under the draft rules, different sets of tariffs for solar, wind and other RE sources shall be approved by the ERC based on the petition of the National Renewable Energy Board.

The initial tariffs that the regulator would approve would last for 15 years and would be brought down little by little according to a schedule the ERC will set.

The feed-in tariffs will be incorporated into consumers’ electric bills under a uniform charge called FIT-All, the implementation of which would be similar to the universal charge.

The ERC will set the FIT-All on a yearly basis upon the petition of the National Grid Corp. of the Philippines, which is tasked with settling and paying the tariffs to eligible RE power plants.


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