PetroSolar secures ERC PAO-FIT approval

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PetroSolar Corp. announced on Thursday that the Energy Regulatory Commission (ERC) on April 27 issued a Provisional Approval to Operate as a Feed-in-Tariff eligible power plant (PAO-FIT) for the company’s 50MW Tarlac-1 solar power project.

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The PAO-FIT release followed the Commission’s approval of PetroSolar’s application during its March 30 deliberations.

The Tarlac-1 solar facility covers 55 hectares of industrial land in the Philippine Economic Zone Authority (PEZA)-registered Central Technopark in Tarlac City. It is the first solar energy plant of PetroSolar, a joint-venture company owned 56 percent by PetroGreen Energy Corp. (PGEC), and 44 percent by EEI Power Corp. PGEC is the renewable energy subsidiary of publicly-listed PetroEnergy Resources Corp. (PERC).

“We are pleased by ERC’s release of the PAO-FIT for our 50MW Tarlac solar power facility, which is the third renewable energy power station we have put up in three years, after our 20MW Maibarara geothermal project in 2014 and the 36MW Nabas wind facility in 2015.  The PAO-FIT approval effectively guarantees the FIT payment to PetroSolar and the financial viability of our investment,” PERC President Milagros Reyes said.

“Our team’s ability to secure this critical regulatory approval mirrors the focus and dedication we put into completing the plant’s physical infrastructure in 4.5 months from the start of foundation works, a record in solar farm construction not just in the Philippines but in Southeast Asia,” Reyes said.

The Tarlac-1 solar project attained 80 percent electro-mechanical completion on December 23, 2015, was energized with feedback power on January 11, 2016, and started delivery of electricity to the Luzon grid on January 27, well ahead of the March 15 deadline for the current 500MW solar FIT allocation.

On March 7, Department of Energy (DOE) Secretary Zenaida Monsada signed the Certificate of Endorsement for Feed-in-Tariff Eligibility (COE-FIT) for PetroSolar’s Tarlac-1 facility with a commercial operation date of February 10, 2016.

“With this ERC approval and the signing and execution last April 6 of our renewable energy payment agreement (REPA) with the National Transmission Corporation (TransCo), PetroSolar effectively secures our slot in the 500MW solar FIT allocation,” PGEC Vice President and COO F.G. Delfin Jr. said.

“This assures our Company and our lenders of revenue from FIT payment of P8.69/kWh from 2016 to 2036. In the meantime, we shall submit this PAO-FIT to Transco for the determination of our REPA’s effective date,” Delfin added.

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