Philippines Approves Tariffs on Alternative Energy Sources

The Philippines’ Energy Regulatory Commission approved feed-in tariff rates for hydroelectric, biomass, wind and solar energy sources, lower than what the nation’s renewable energy board asked for.

Run-of-river hydroelectric power sources will enjoy a 5.90 pesos a kilowatt-hour tariff, biomass 6.63 pesos, wind 8.53 pesos and solar 9.68 pesos, the commission known as ERC said in an e-mail. The ERC deferred fixing the tariff for ocean thermal energy conversion resource pending further study, it said.

The lowered tariffs will cushion the impact of the incentive mechanism on electricity rates, while attracting investments in renewable energy, ERC Executive Director Francis Saturnino said in the statement.

The renewable energy board in its May 2011 petition sought a 6.15 a kilowatt-hour tariff for hydroelectric, 7 pesos for biomass, 10.37 pesos for wind and 17.95 pesos for solar energy sources. Under a feed-in tariff, investors are paid a cost-based price to provide a reasonable return.

To contact the reporter on this story: Norman P. Aquino in Manila at

To contact the editor responsible for this story: Clarissa Batino at

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