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ELIGIBLE renewable energy (RE) plants will be entitled to receive additional incentives starting next year as the Energy Regulatory Commission (ERC) approved longELIGIBLE renewable energy (RE) plants will be entitled to receive additional incentives starting next year as the Energy Regulatory Commission (ERC) approved long

ERC approves feed-in tariff adjustments

Yazar: Bworldonline
2025/12/15 21:00
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ELIGIBLE renewable energy (RE) plants will be entitled to receive additional incentives starting next year as the Energy Regulatory Commission (ERC) approved long-delayed adjustments in the feed-in tariffs (FIT).

The approved adjustments to the FIT cover the calendar years 2021 to 2025, which FIT-eligible plants will be entitled to recover over a five-year period, starting 2026.

“The approval marks the first adjustment to the FIT scheme since 2020,” ERC Chairperson Francis Saturnino C. Juan said. “It underscores our commitment to uphold and ensure the success of the FIT System as enshrined in the RE (Renewable Energy) Act.”

FIT rates are designed to encourage investment in new renewable energy projects.

For biomass, the rate was adjusted to P7.0655 per kilowatt-hour (kWh) in 2021, P6.9609 in 2022, P7.3298 in 2023, P7.9363 in 2024, and P8.1259 in 2025.

The ERC set the FIT rates for hydro at P6.1747 in 2021, P6.1404 in 2022, P6.4514 in 2023, P6.9714 in 2024, and P7.1626 in 2025.

For solar, the rates were set at P10.5513 in 2021, adjusting to P10.2758 in 2022, P10.8507 in 2023, P11.7776 in 2024, and P12.0074 in 2025.

For wind, the rates were set at P9.1940 in 2021, P9.0053 in 2022, P9.4960 in 2023, P10.2946 in 2024, and P10.5178 in 2025.

Meanwhile, the ERC approved a FIT rate for the fourth round (FIT4) of P6.9282 per kWh for run-of-river hydropower projects, valid until Dec. 31, 2026.

This rate will be degressed by 0.5% per year until the 100-megawatt (MW) installation target is fully subscribed.

The process for the fourth round started after the ERC received letters from Philhydro Association, Inc. on March 25, and from the Department of Energy on Sept. 25, requesting the immediate determination of the FIT4 rate for the additional 100-MW installation target.

“The Commission has formally adopted the FIT rate for the 4th round of run-of-river hydropower, marking another step in the country’s renewable energy development to achieve the energy mix of 35% by 2030,” Mr. Juan said.

Launched in 2011, FIT offers fixed payments per kilowatt hour to developers. This is funded by a uniform charge billed to all on-grid electricity consumers to support the development and promotion of renewable energy. — Sheldeen Joy Talavera

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