The National Renewable Energy Board (NREB) has proposed attractive Feed-in-Tariff rates for renewable energy. The proposed rates are: P7 (US 16 cents) per kilowatt-hour (kWh) for biomass, P6.15/kWh (US 14 cents) for run-of-river hydroelectricity, P10.37/kWh (US 23.9 cents) for wind power, P17.65/kWh (US 40.7 cents) for ocean energy, and P17.95/kWh (US 41.4 cents) for solar energy. It is up to the country's Energy Regulatory Commission (ERC) to approve the rates.
Next up for the NREB is its recommendations for renewable portfolio standards (RPS) and net metering rules. NREB plans to submit its RPS proposal to the Department of Energy by August 30, 2011, and its proposed net metering rules to the Energy Regulatory Commission, by September 30. RPS is the amount of electricity coming from renewable energy sources that the distribution utilities will be required to buy from power generation companies. Net metering will allow power consumers to install their own renewable energy sources such as solar panels on rooftops and earn an offset on their electric bill for power sent back to the grid.
Once these final rules are implemented, the Philippines should benefit from more than $1 billion in renewable energy investments that are currently pending, as well as additional investments that are awaiting the final rules.