The National Renewable Energy Board (NREB) wants installation caps imposed on solar and wind projects to give more renewable energy (RE) developers a chance to pursue the technology and to enjoy the government’s tariff incentives.
“This is to spread the projects to a wide number and also increase the number of people who can pursue the technology later on,” NREB chairman Pedro Maniego Jr. told reporters on the sidelines of the Energy Smart Philippines 2015 Summit.
For wind, Maniego said the NREB is proposing an installation cap of 100 megawatts per project and for solar, they are looking at a cap of 50 MW.
“It’s unfair if you will grant very big projects, but if you put a cap of 100 MW for wind, it will be at least five projects and for solar, if you put a cap of 50 MW, there will be at least 10 projects,” he explained.
Maniego said the board will coordinate with the Department of Energy (DOE) on the proposed caps since the DOE is in charge of implementing the installation targets.
While the proposal would also be submitted to the Energy Regulatory Commission (ERC) for the computation of the Feed-in-Tariff (FIT) rates, Maniego said the implementation and awarding of commercial licenses remains a responsibility of the DOE.
“So it’s up to them to come out with the rules in awarding installation capacity,” he added.
He said the NREB, as a recommendatory body to the ERC and DOE, will still have to discuss the scheme.
“Once approved by the board, we will pass it on to the DOE and ERC,” he said.
Maniego said he did not foresee problems at the DOE because Secretary Zenaida Monsada, currently the officer-in-charge of the DOE, is also a member of the NREB.
“She is also open to more RE [players]so there should not be too much of a problem,” he added.
Maniego said there might be some opposition from the big developers if the proposal is approved by the DOE and ERC.
“For solar, most of the developers are small, so there could be no problem. For wind, most of the developers are big, but I think 100 MW is already doable,” he added.
The NREB is the body tasked under the Renewable Energy Act of 2008 to recommend policies, rules and standards to govern the implementation of the RE law, which grant fiscal and non-fiscal incentives to RE projects.