The Energy Regulatory Commission (ERC) of the Philippines has given the go-ahead to state-owned National Transmission Corp. (TransCo) to raise the feed-in tariff allowance (FIT-All) from PHP 0.1189/kWh to PHP 0.2073/kWh.
The new FIT-All rate – which is the levy electricity consumers pay to finance renewable energy incentives in the Philippines – is described by ERC as a “balance.”
“It ensures there is enough money to pay renewable energy producers on time, while also minimizing the additional cost passed on to consumers in the form of interest payments to these producers,” the regulator said in a statement. “It considers the required funds to settle a PHP 19.06 billion FIT differential and build a PHP 3.74 billion working capital allowance, which serves as a buffer to guarantee timely payments to the renewable energy producers.”
ERC also stressed that, as of the beginning of September, 97.6% of FIT obligations were paid off, for a total amount of PHP 215.27 billion.
“To guarantee that the FIT-All fund is managed properly, the ERC has ordered an immediate audit,” it also stated. “All parties involved, including grid operators and power distributors, have been directed to make their records available for this review.”
According to the International Renewable Energy Agency (IRENA), the Philippines’ cumulative solar capacity surpassed 2.9 GW by the end of 2024.
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