SOLAR PV PROJECTS

SOLAR PV PROJECTS

In May 2021, 50 MW of Solar PV Plant has come online in Bulacan is a joint venture of MGen Renewable Energy, Inc. (MGreen) and PowerSource Energy Holdings Corp. with an investment of $84.47 million (PHP4.25 billion). In July 2021, Modern Energy Management (MEM) commissioned 63 MW for AC Energy in the Luzon region, MEM provided engineering, design, and construction services, alongside its Filipino partner, Sidcore Consulting. In December 2020, Pilipinas Shell Petroleum Corporation (PSPC) commissioned 1.8 MWp at Tabangao refinery unit (refinery unit is not under operation) in Batangas City. In March 2016, Equis Pte. Ltd. (Equis) commissioned 132.5 MW of Solar PV project in Cadiz City, Negros Occidental. The Energy Regulatory Commission (ERC) is still working on the pricing formula for the targeted ‘tariff ceiling’ that shall be instituted for the 2 GW of renewable energy (RE) capacity auction targeted by this year. The regulatory body has not finalized the ceiling tariff for renewable portfolio standards auction, even they are planning whether there will be the same ceiling tariff for the RE technologies or there will be different tariff based on the technologies such as Wind, Solar, Small hydro, Biomass, and others. Earlier, ERC indicated that the proposed ‘green energy tariff’ benchmark that will serve as the price ceiling for the RE auction will likely be lower than the prevailing FiT for the RE technologies.

In the second wave of FiT-incentivized RE developments, the tariff set for Solar had been at P8.69 per kilowatt hour ($0.17170/kWh), the Wind was at P7.40 ($ 0.14502) per kWh, while the degressed rate for biomass was at P6.5969 ($0.12928) per kWh, and hydro at P5.8705 ($0.11504) per kWh. There is no FiT rate decided yet for ocean or tidal in-stream technologies. The ERC is studying the experience of the other countries for renewable energy pricing. In other RE business sectors in Southeast Asia – Vietnam FiT for Solar oriented is now nearly low contrasted with the Philippines at 9.35 US cent or P4.48 per kWh comparable at current peso-US dollar exchange and Wind at 8.50 US cents or a likeness P4.08 per kWh. To attract potential investors, the ERC has to come out with a final ceiling tariff, as time goes on, the country will be losing the investors. As of now, whosoever will be bidding for the RE projects, the bidder has to match with L1 tariff to won the bids. RE projects movement in the Philippines are seen speeding up beginning this year due to the rollout of the Renewable Portfolio Standards (RPS) strategy, an impetus plot that gives a market to RE produced electricity in light of the commanded level of RE supply that the appropriation utilities will obtain as a part of their overall portfolio. For the year 2021, the Department of Energy (DOE) has to auction at least 2 GW of renewable capacity. This program will increase the RE capacity in the grid. This program will help RE generators in getting power supply agreements and selling their energy through a reasonable benchmark cost.

Other mechanisms are the Net Metering Program and the Green Energy Option Program (GEOP) – the second one will engage consumers to straightforwardly source or fulfill their power needs from their preferred RE providers; while in net metering, end-users could deliver their power and may inject surplus into the grid and there is a cost-balancing plan with their utility providers on that.

The country is also focusing on hydrogen for the local industry given that it is seen as the fuel of the future, which comes for new investment opportunities for the investors. Also, the Department of Energy signed a memorandum of understanding with Australia-based research and development firm Star Scientific Ltd to explore the potential of hydrogen as an energy source as a Southeast Asian country heavily dependent on imported coal and fuel oil, hopes to be able to utilize hydrogen as a fuel for vehicles and also part of its future energy mix.