Hydro firms seek higher rates to drive more investments
The Philhydro Association, which groups hydropower developers, is calling for higher rates for hydro projects to encourage more investments in the country.
In an ambush interview on Tuesday, Philhydro president Gertrude Roque said they need a “reasonable” rate under the Feed-in-Tariff (FIT) to be encouraged to develop more projects.
Philhydro is urging the government to offer greater incentives, saying that the latest proposed benefits are still insufficient to attract strong investor interest.
“What we want is a reasonable FIT rate, as we understand that the government has to balance between the investors and the consumer needs,” Roque said.
She said that the proposed FIT rate was set at roughly P6.30 per kilowatt-hour.
Roque added that this rate may fall short of what is needed to encourage additional outlay in the sector.
She likewise acknowledged that the incentives might seem burdensome for consumers. But emphasized that the funds also support “the watershed and the infrastructure we help build in rural communities.”
“But the reality is we’re not just producing water or power, but we are also taking care of the watershed and the infrastructure that we contribute to the countryside,” Roque added.
The FIT program is designed to guarantee fixed pricing for new and emerging renewable energy sources, including wind, solar and small-scale hydro facilities.
In a speech by Energy Secretary Sharon Garin, read by Ruby de Guzman, director of Renewable Energy Management Bureau (REMB), she said that hydropower is more than just a part of the energy mix.
“It is a national imperative that underpins a successful energy transition and is crucial to achieving our renewable energy targets of 35 percent by 2030 and 50 percent by 2040,” Garin said.
The energy chief said the Department of Energy was upholding its commitments under the FIT program and optimizing collaboration in the Green Energy Auction Program. This is intended to provide the confidence and certainty to attract investors and elevate hydropower development.
