(SeeNews) – Nov 29, 2011 – Philippines' government should impose a cap on the guaranteed tariffs for renewable energy and reconsider its formula for calculating electricity prices, Business World said Monday, citing speakers in the Labor-Business Consultation on Electricity.
Fernando L Martinez, president of the Independent Philippine Petroleum Companies Association, urged for a renewable energy rate cap of PHP 7 (USD 0.16/EUR 0.12) per kilowatt-hour, arguing that current electricity prices in the country were too high. He also said that the companies should avoid using expensive technologies until the prices come down.
Speakers criticised the government for implementing policies leading to high power prices.
Manila is working on its renewable energy policy, with the government seeking to introduce feed-in tariffs (FiTs). Under the plans, pending the green light from the Energy Regulatory Commission, the FiT for biomass would be PHP 7 per kWh, for run-of-river hydroelectricity - PHP 6.15/kWh, PHP 10.37/kWh for wind power, PHP 17.65/kWh for marine energy and PHP 17.95/kWh for solar power. These rates are set to have an average impact of PHP 0.12/kWh on electricity prices, according to the report.
(PHP 100 = USD 2.292/EUR 1.709)
Choose your newsletter by Renewables Now. Join for free!