Solar power firms seek industry framework

MANILA, Philippines - The Confederation of Solar Developers of the Philippines (CSDP) is seeking inputs from the National Renewable Energy Board (NREB) for its framework for the solar industry before submitting it to the Department of Energy (DOE), its top official said.

The solar developers’ group will meet with newly-appointed NREB chairman Jay Layug tomorrow, CSDP president Reynaldo Casas told The STAR.

The consultation with NREB will allow CSDP to improve its framework, which will be submitted to the DOE, Casas said.

As it stands, the solar industry is hanging because of controversies surrounding the second round of FIT for solar (solar FIT-2) that resulted in over 300 megawatts (MW) of stranded projects to which solar developers have been asking the government to include the overcapacity in the FIT system.

FIT is a set of incentives given to power developers for a period of 20 years to invest in the more expensive renewable energy sector.

Because of this, Casas said some developers and engineers have opted to seek opportunities elsewhere like in India or Indonesia.

To get the solar industry back on track, CSDP has been crafting a concept of auctioning in place of the third round of FIT.

DOE Secretary Alfonso Cusi earlier said he was not keen on expanding the FIT system for solar and wind into the third round since it only adds burden of paying more to consumers.

“The positive thing is the DOE has formed a committee so we will talk to only one entity. The ERC is also looking to do the same,” Casas said.

The DOE has formed an investigating committee to thoroughly study the implementation of the solar FIT-2 following complaints lodged by solar companies.

CSDP was formally launched in December with pioneering members consisting of key solar developers with a combined capacity of 543 MW equivalent to P45 billion worth of investments.

Co-founders include Aboitiz Power Corp., Bronzeoak Philippines, Energy Development Corp., Equis, nv-vogt, Solar Pacific and Solar Philippines.