Hydropower developers are seeking higher, “reasonable” royalties for Run-of-River (Ror) Hydropower Projects to attract further investment, an industry official said.
At the third Philippine Hydro Summit on Tuesday, Gertrude V. Roque, President of the Philhydro Association, Inc., said that increasing the fee will attract more developers.
“The truth is that we are not only producing water or energy, but we also take care of water and infrastructure that we contribute to the countryside,” said Ms. Roque.
Hydropower plants generate electricity from the natural flow of flowing water. The types of such projects operating in the Philippines are incentive hydro, run-river hydro, and pay-as-you-go hydro, which are eligible for subsidized rates under the feed-in tariff (eligible).
Launched in 2011, offering fixed Kilowatt hour input to Developers. This is also a uniform charge paid to all electricity consumers through the grid to support the development and promotion of renewable energy.
With the ror installation target under fit yet to be fully registered, the Department of Energy (DoE) has set a new target of 100 megawatts (MW) this year.
During previous cycles, the ror rate ranges from P5.90 per KHOWATT-HORE (KWH) to P6.0804 per kWh per kWh, depending on the scheduled completion date of each project.
When the rate is fully adopted, the ror will adopt the structure of the green energy auction renewal, another program to promote the development of renewable energy.
Philhydro proposed the use of the “actual capacity factor” as the basis for setting the fee. This sets an electricity-based value for how much power the plant produces over a period of time, compared to how much it would produce if it were operating at full capacity continuously.
“The actual and historical power plant characteristics represent the true conditions and challenges of ror hydro operation,” said the team in the paper.
Philhydro also requests that run-run hydro will be protected from emergency costs, ongoing exposure to weather, climate change and natural disasters. “
Since October, the government has awarded service contracts for 404 hydropower projects with a capacity of over 14,000 MW.
According to the speech by the Secretary of Energy Sharon S. Garin sent by Ruby B. de Guzman, the role of the Hydropower Energy Management Bureau, the renewed energy role of the Energy Management Bureau, is to provide sustainable energy and bring energy to maintain a stable Grid.
“Hydropower is more than just one part of our Energy Mix – it is a national priority that drives an effective energy transition and is essential to achieving our renewable energy goals of 35% by 20% by 2040,” said Ms. Garin.
The DoE is working with foreign partners and technical experts to map potential hydropower sites across the Philippines, supporting the goal of strengthening hydropower, he said.
“Energy transition is not a distant goal – it is a reality we live with today. And for the Philippines, water is not just life; energy, too. – Sheldeen Joy Talavera
