House wants doe, erc to study impact of re on electricity rates _ businessmirror

Meanwhile, in his CPBRD notes, Mira said the biggest hurdle in fully integrating RE sources in the power system is how RE could impact prevailing electricity prices, saying the country is already known for having one of the most expensive power rates in the world.

“The FiT, which is passed on to consumers, guarantees the profits of RE developers for 20 years, while the law is only mandating the FiT to be applicable at least for 12 years…20 years is quite long enough. Static electricity online games It’ll give RE developers so much guarantee on their profits at the expense of the consumers,” he added.

“It can be gleaned that the FiT system is devoid of competition because of the priority dispatch and off-take treatment in favor of RE. Electricity song billy elliot This should be viewed as a double-edged sword, because essentially, while RE could potentially reduce electricity rates in the long-term—assuming grid-parity rate is reached —the immediate and short-term impact of integrating RE into the power system is, no doubt, higher electricity rates,” Mira said.

Earlier, Party-list Rep. Gaz 67b for sale Angelo Palmones of Alyansa ng mga Grupong Haligi ng Agham at Teknolohiya para sa Mamamayan (Agham) questioned the plan of the National Transmission Corp. Static electricity how it works (TransCo) to increase FiT-All charge from P0.04 to P0.12.

“We heard that TransCo will collect from electric co-ops [cooperatives] and private-power distributors an increase of up to P0.12, from the previous P0.04 per kilowatt hour [starting next month], and this will be nationwide. Electricity jeopardy powerpoint Why will consumers shoulder the incentives for RE developers?” Palmones asked.

There is already an ongoing petition by the TransCo to increase FiT-All charge from P0.04 centavos to P0.12 centavos. Gas in babies at night The adjusted FiT-All application is meant to replenish the working capital of TransCo as FiT administrator, so it can pay RE developers on time.

MIRA also said, despite the abundance of RE supply in the country, there has not been a robust increase in RE projects, following the passage of the RE law in 2008.

He added that fossil fuels remain the preferred fuel source and the government’s recent approval of several coal-fired power plants seems to contradict its policy to promote RE development in the country.

The government has recently issued Environmental Compliance Certificates (ECCs) to 21 new coal-power plants, while the latest Power Outlook of the DOE showed there are 19 committed coal-power projects with a total installed capacity of 3,877 megawatts (MW) expected to come online between 2015 and 2020.

However, these new contracts could tie up the country to coal power for years and significantly boost coal share in the power-generation mix, he said.

“While the DOE claimed it is technology-neutral in terms of its energy policy, it also stressed the need for coal to ensure stability in the country’s power supply. Grade 6 science electricity multiple choice test Because of its abundance and the relatively cheaper fuel cost, coal-power plants are often used to cover for baseload capacity,” Mira added.

Also, Mira said many RE developers find it difficult to obtain financing from local banks, given their reluctance to lend in a relatively untested market, particularly small RE players.

“This problem is even exacerbated by the DOE’s ‘first-to-build, first-to-FiT’ policy, which grants FiT to RE developers on a ‘first-come, first-serve’ basis,” he said.

Under the policy, Mira said, “RE investors are required to accomplish at least 80-percent electromechanical completion of their power plants—which means that a big portion of the RE plant’s physical construction is already completed—before the DOE issues them a certificate of endorsement to the ERC for FiT approval. Mp electricity bill payment jabalpur Hence, RE investors face the risk of being denied of their FiT applications despite infusing huge amount of investments.”

With this first-to-build, first-to-FiT policy, Mira said the Philippines differs from FiT policies in other Asian countries, as FiT approval in the country takes place after project construction and commissioning.

Meanwhile, Mira calls for the DOE and the ERC to improve their regulatory and management functions, especially with respect to the whole process of developing RE in the country.

“The DOE is involved in the planning, monitoring, evaluation and approval of RE projects, including the implementation of regulatory standards. Nyc electricity cost The ERC is involved in the approval of FiT rates and FiT-All, including future adjustments. Gas after eating salad Thus, the DOE and the ERC have the power to help mitigate the short-term negative impact of RE in terms of higher electricity prices in the country, which could be bane for investments, jobs and economic growth, in general,” he said.

Apart from effective management, Mira added that the DOE should also help improve the overall business climate for power developers given the country’s dire need for additional capacity, especially in the long term.

“This could be achieved, for instance, by streamlining the bureaucratic processes and approvals of power-development projects, strengthening the implementation of performance standards in ancillary energy sector services, such as transmission and distribution, as well as by honoring contracts with the private proponents,” he said.

Former Sen. Gas prices going up in michigan Juan Miguel Zubiri, author of the renewable energy law of 2008, said these challenges should be addressed immediately for the smooth implementation of the law.

In a separate statement, Zubiri said a growing number of private enterprises are now self-generating their supply of electricity using the stored energy from farm waste.

“We already have 16 large corporations—mostly integrated sugar producers and intensive hog growers—that have put up biomass power plants with a combined installed capacity of 166.18 MW for their own use,” Zubiri said.

“These businesses are not only realizing substantial electricity cost-savings; they are also providing additional income to small planters and creating new farm jobs,” he added.

By self-generating their power needs, Zubiri said the 16 firms are also freeing up grid-supplied electricity for other industrial, commercial and residential consumers.

Citing the Renewable Energy Management Bureau, Zubiri said more than 2.9 million jobs—mostly in construction and engineering services—have been created by the boom in biomass, wind, solar, geothermal and hydropower projects.