Alternative energy finds support in the Philippines through feed-in tariff

Alternative energy finds support in the Philippines through feed-in tariff

August 6, 2012 0 By Erin Kilgore

ERC introduces new feed-in tariff program

Alternative energy is about to get a boost in the Philippines. Late last week, the Philippines Energy Regulatory Commission (ERC) announced a new feed-in tariff (FiT) program that would help increase the adoption of four forms of alternative energy. These are hydro, biomass, solar, and wind energy. The FiT program is designed to soften the financial blow of making the transition to alternative energy systems. The program may be able to hasten the adoption of these energy systems by providing financial incentives for doing so.

Market trends lead to changes in FiT program

According to the ERC, the prices associated with its FiT program are significantly lower than what had been estimated by the National Renewable Energy Board (NREB). This is due to the evaluation of the construction costs associated with each of the country’s alternative energy systems. The ERC notes that there is currently a downward trend in the alternative energy market in regards to prices. This trend is expected to continue for some time, as alternative energy becomes more common.

FiT may increase the adoption of alternative energy

The FiT program is currently under review. Adjustments can be made during the process in order to account for any changes in the market. The program may be put into place in three years, or when the country’s currently alternative energy systems have reached the installation targets imposed by the Department of Energy.  Once enacted, the government believes the FiT program will help encourage the adoption of alternative energy in an aggressive fashion.

Philippines latest to adopt feed-in tariff for alternative energy

Feed-in tariffs have become a popular tool in the adoption of alternative energy. Several countries around the world have implemented these programs in order to make renewable energy more accessible to consumers and businesses. Japan currently hosts the most ambitious feed-in tariff program for solar energy, followed closely by Germany. Some states in the U.S., such as California, currently have similar programs in place, though on a smaller, community-based scale.


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