Philippine Feed-in-Tariff Policy Secures Renewable Development Capacity

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--The number of serious players competing under the Philippines' renewable energyfeed-in-tariff (FiT) policy has increased, contrary to initial skepticism that the first-come, first-served allocation scheme would discourage investment, according to the country's director of renewable energy.

Such competition will help ensure reliable renewable energy capacity for the country in the future, according to the country's director for renewable energy.

Prequalification for the FiT scheme gives project developers a chance to secure an allocation from the 760-megawatt (MW) installation target, or the total capacity of renewable energy projects that will be allowed to be constructed within a three-year period. Securing an allocation will make the project eligible for the FiT rate, a mechanism that will secure a fixed cash flow for 20 years for the developer.

Windfarm development in the country continues to make progress. Trans-Asia Oil and Energy Corporation signed for a combined, $96 million financing facility for its 54-MW windfarm project at San Lorenzo in the Guimaras province. The 15-year loan will be used to fund the construction and development of the project, which was pre-qualified under the FiT scheme by Trans-Asia subsidiary Tarec, which holds 12 wind energy service contracts.

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