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Philippine released the FIT policy for $0.23/ kWh to solar power
After the NREB of Philippine raised the suggestion to the government, the ERC of Philippine has officially approved the FIT plan. The FIT for solar power is $0.23/kWh and the scale of system and the solar power technology adopted.
In the recommendation presented to the government in the May of last year, the FIT the NREB suggested is$0.43/kWh. For this, the executive director of ERC, Francis Saturnino Juan, said, ‘ECR adopting the lower FIT is to attract pv inverter investment with reducing the effect of the FIT on the electricity prices. This is a win-win program.”
Meanwhile, the government plans to tilt to the power technology with capacity factors in order to ensure that only the high efficiency power ways can get the FIT.
The ERC adopted the way NREB recommended to calculate the tariff, including considering the promotion cost of various renewable energy power technologies, capacity factors and the rate of return on investment.
According to the 16.44% internal return rate calculated by ERC, if considering the factors of rising oil price, the internal return rate may higher than 17%.
The FIT of Philippine will be revised every three years. If the installation goal s made by the energy department is completed during the plan period, the FIT will be adjusted in advance. The Philippine government is optimistic with the investment stimulating effect of the FIT policy.