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MANILA, Philippines - The company that proposed bidding out feed-in tariffs (FIT) for renewable energy projects has withdrawn its petition, according to the agency in charge of overseeing such ventures.
Ernesto B. Pantangco, vice chairman of the National Renewable Energy Board (NREB), said Visayan Electric Co. (VECO), which supported the proposal of Senator Sergio R. Osmeña III to bid out the tariff rates that will be given to various renewable energy projects, had withdrawn its petition before the Energy Regulatory Commission (ERC).
"We felt that the road is now clear for the implementation of the feed-in tariff. We feel there are no more stumbling blocks," Pantangco said.
With VECO's petition withdrawn, NREB expects its proposed FIT rates to be approved within 90 days.
Public hearings for the FIT rates were completed on May 2.
NREB had filed a FIT rate of P7.00 per kilowatt-hour for biomass, P17.65 per kilowatt-hour for ocean, P6.15 per per kilowatt-hour for run-of-river hydro, P14.50 per per kilowatt-hour for solar, and P10.37 per per kilowatt-hour for wind projects.
The FIT rates of each renewable energy technology will be shouldered by consumers through a new line item in their electricity bills, the so-called FIT-Allowance, which the ERC will set.
If approved, renewable energy developers who will be qualified by regulators to partake of the incentive will be paid these rates over a set period.
Senator Osmeña had proposed an auction to help bring down FIT rates.
Renewable energy proponents however were averse to this scheme as it would curtail their ability to regain their investments.
Francis Saturnino C. Juan, ERC executive director, said VECO sought the adoption of the bidding scheme three years after the prescribed FIT rates are implemented.
"As far as the setting of the FITs, we are already evaluating NREB's proposed FITs based on what transpired during the hearings thereon and the parties' submissions," Juan said.
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