Subscribe

Latest Feed-in-Tariff Rates for Renewable Power Generation Technologies

August 4th, 2011 Posted in renewable energy

Latest Feed-in-Tariff Rates for Renewable Power Generation Technologies

Fears of price spike due to renewable energy allayed

BY JOHN LOURENZE POQUIZ

The National Renewable Energy Board yesterday allayed fears of a spike in power rates with the tapping of renewable energy, saying the added cost will only be about 12.57 centavos per kilowatt-hour. (1 US$ = 41 Pesos, 1 Peso = 100 centavos)

In its proposed feed-in tariff (FIT) rates submitted to the Energy Regulatory Commission, the NREB pegged the rates at P6.15 per kWh for hydro, P7 for biomass, P10.37 for wind, P17.65 for ocean energy, and P17.95 for solar.

This gives an average of P11.82 per kWh.

This is misleading because the biggest source is biomass with a projected 42.77 percent share of the renewable energy contribution to the energy mix,

Pete H. Maniego Jr., NREB chairman, said.

The actual average FIT is only P7.86 per kWh, he said.

The current generation charge is around P5/kWh.

But Maniego said that since the renewable energy to be tapped is only around 800 MW in the next three years – about 10 percent of total energy consumption – the average increase in the generation charge would be 12.57 centavos/kWh. This is the so-called FIT allowance (FIT-All) that will be charged on all consumers.

“This might be on the high side since the computation was based on the following assumptions: 1) attainment of all installation targets within three years, and 2) the average generation cost of P4.50 (2010 figure) would increase at the rate of 4 percent per annum,” Maniego said.

“If the installation targets are not met and/or the average generation cost balloons due to high fossil fuel prices, then the impact of the FIT would be substantially lower. The latest approved tariff rate for a coal plant is already at P6.15/kWh including VAT. RE power sales are VAT exempt,” he added.

Among the major objectives of the RE Act of 2008 are the attainment of energy security and mitigation of the impact of high fossil fuel prices, he said.

Aside from biomass with a contribution of 42.77 percent, the other renewable energy sources are hydro with 24.53 percent; wind, 19.36 percent; solar, 9.75 percent; and, Ocean, 3.59 percent.

The proposed renewable energy installation targets for the next three years by the NREB are 250 megawatts for small hydroelectric power, 250 MW for biomass, 100 MW for solar energy, 220 MW for wind energy, and 10 MW for ocean power technology.

RE developers said the proposed FIT rates of NREB are too low to attract investments into new technologies.

They said the proposed installation targets were likewise low. They proposed installation targets of 235 MW for solar, 340 MW for wind, 170 MW for biomass, 148 MW for hydro, and 10 MW for ocean energy technology.

But Energy Secretary Jose Rene Almendras said “social and economic considerations” were taken into consideration in the computation of the FIT.

Almendras was referring to a possible spike in rates if higher FIT rates were adopted. Almendras said the installation targets were set to prevent renewable energy from causing problems to the grid.

“Even if you force a number that is not technically done, you’re gonna crash the system. I do not want to be the secretary of energy who wants to crash the grid. So, therefore, there is a technical reason for that,” he said.

“Whether you’re embedded or in the grid, when you are contributing electricity to a wire, and you suddenly put that off and the demand for that is already there, something is going to happen to the network. It’s going to crash,” he added.

RE Technology

Installation Target-NREB, MW

Contribution

%

Fit Rate, PhP/kWh

NREB-Developers

Mini-Hydro

148 – 250

24.53%

6.15 – 7.40

Biomass

170 – 250

42.77%

7.00 – 8.22

Solar

235 – 100

9.75%

17.95 – 19.87

Wind

340 – 220

19.36%

10.37 – 11.29

Ocean Energy

10 – 10

3.59%

17.65 – 18.52

Average for RE

 

100.00%

11.82 – 13.06

Weighted Ave for RE

 

 

8.89 – 10.12

National Grid:

 

 

 

RE Technology

 

3%

11.82

Conventional Grid

 

97%

5.00

Average for Grid

 

 

5.2046

% Increase in Grid

 

 

4.092%

 

Personally, I believe that the right way forward for the world right now is to promote renewable energy and investments in sustainable energy technologies to address the impending depletion of fossil fuels during our lifetime (oil will be gone in 40-50 years, natural gas in 50-60 years, coal in 250-300 years, uranium fission in 300-500 years).

We can extend their lifetimes (ratio of resource to extraction rate) by increasing energy utilization efficiency (use energy efficient cars and not SUVs), avoiding wasteful consumption (don’t drive your vehicle when you can walk or use public transport), and avoid using fossil fuels (use renewable solar, wind, mini-hydro, biomass and ocean thermal).

By investing now in renewable energy, the world will reduce the demand and thus the price of crude oil, as well as prolong the lifetimes of fossil fuels. It will also reduce carbon dioxide emission and other emission of green house gases that promote global warming and climate change.

Likewise, it will help conserve scarce foreign exchange by utilizing abundant renewable energy instead of paying scarce dollars for OPEC crude oil and finished products.

Also, the world needs to consider commercializing now breeder reactor technologies to stretch scarce nuclear uranium fission fuels to over 1,000 years (from current 300-500 years lifetime of uranium fission fuels).

Thus, the future of the world will depend greatly on shale gas and tar sands to expand natural gas LNG, renewable energy to conserve scarce fossil fuels and reduce global warming, and nuclear breeder reactor technologies to stretch scarce uranium fission fuels.

Countries with very cheap energy and electricity are doing the world a great dis-service since their citizens are wasting precious fuels and currencies. Subsidies on domestic and imported fuels are not preparing their citizens to the impending scarcity of fuels. Hence, their countries are in great financial crisis since their energy and electricity are not taxed enough to reflect their scarce value and emission of green house gas.

Countries that have high energy and electricity prices due to adequate taxation have financially robust governments and economies. They don’t suffer the budget deficits and national debts such as the USA, Great Britain, Italy, Portugal, Ireland, Greece, Spain. Taxes on oil and energy products and electricity (customs duty, specific tax, value added tax, excise tax, carbon tax) need to be imposed to balance the national budget and promote energy conservation.

This will also avoid an economic meltdown in their economies. There are 4 countries in the world (China, Brazil, Indonesia, Philippines) that did not suffer from the 2008 Global Financial Crisis because of reforms made during the 1996 Economic Crisis.

My next blog will deal with the cost of renewable energy technologies (feed-in-tariff). I will be making a special offer for the purchase of the following RE technologies:

1) Biomass Power Model (Direct Combustion, Cogeneration, Gasification of MSW)

2) Mini-Hydro Power Model

3) Ocean Thermal Energy Conversion (OTEC) Model

4) Solar PV Power Model

5) Wind Power Model

6) Renewable Energy Resource Assessment Model (Wind, Solar PV, Mini-Hydro) – Converts wind speed measurement, solar radiation and rainfall data into hourly power output, annual power generation and annual capacity factor)

Cheers,

Marcial

mars_ocampo@yahoo.com

2 Responses to “Latest Feed-in-Tariff Rates for Renewable Power Generation Technologies”

  1. conversion calculator for money Says:

    conversion calculator for money…

    […]Latest Feed-in-Tariff Rates for Renewable Power Generation Technologies | Energy Technology Expert[…]…



  2. Jansen Bautista Says:

    What about waste to energy?



Leave a Reply

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>