Solar producers oppose proposed installation caps

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THE Philippine Solar Producers Association (PSPA) has expressed strong opposition to the move to impose installation caps on solar and wind projects.

PSPA president Tetchie Capellan said the move by the National Renewable Energy Board (NREB) has no basis and would just dissuade investors.

“Putting a cap, I think, doesn’t have a basis because it kills the investment climate,” Capellan said.

NREB chairman Pedro Maniego Jr. earlier said the move will give more renewable energy (RE) developers a fair chance to pursue the technology.


For solar, the board is proposing an installation cap of 50 megawatts (MW) per project and 100 MW each for wind power projects.

Capellan said the NREB should find a commercial basis for such proposal. “I have never seen any installation target in the whole world that caps on a per project size,” she said.

Capellan explained that sometimes the environment does not allow a developer to recover the cost at 50 MW because solar is resource-based.

“So if the resources are, like for example the terrain is hilly, you have to cover more as much as possible to generate, and putting a cap per project is not really something that one should think about,” she added.

She said imposing an installation cap is not a good way to lure and convince RE developers to invest in the country.

“It is very difficult to attract investors but in the case of solar, it is attracting them and [they are]building and risking. That, to us, is very positive. Now putting a cap, I think, doesn’t have a basis because it kills the investment climate,” she said.

What NREB should do, she added, is to promote a climate conducive to investment by increasing the installation capacity so that it could be spread to all RE developers.

“The way to spread is to increase the target, and we believe that solar has created an environment that attracts investors,” she said.

She stressed that going beyond the cap is a good thing because it means that local and foreign investors are staking in their money to help government build the infrastructure that is needed to address the peak power load.

Maniego earlier said the board will be coordinating with the Department of Energy (DOE), which is the one implementing the installation targets, for the adoption of the proposal. He said they will also recommend the same to the Energy Regulatory Commission (ERC) which is responsible for computing the Feed-in-Tariff (FIT) incentives.

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2 Comments

  1. Arch.Lito L. Mallonga on

    The Solar Panel will be a big problem not only in the Philippines but
    throughout countries that gets hit by TYPHOONS & TORNADOS.

    Can you imagine when those panels fly all over the place. They
    even stalled them on top of the buildings n Makati City.
    There are new technology now much better called SOLAR LIQUID
    that my group will be inducing soon towards the Philippines.
    As far as WIND POWER, build them towards the SEA or on the
    Mountain rather on the land specially towards agriculture location.

    We do not have enough land and Farmers for sure will take a second
    thought on their safety on those big structures above there heads.
    Build them towards the SEA. Might quite expensive to build but
    the return of investments will be great.

    The biggest problem we all face is that when we see new technology
    everybody wants to get hold of it. Technology that might not
    be adopted on certain location. Maybe its time to think about it.
    That is all I can say.