The Energy Regulatory Commission (ERC) has approved a new feed-in tariff (FIT) rate of P6.9282 per kilowatt-hour (kWh) for the fourth round of run-of-river hydropower projects to provide price certainty for developers and supporting the rollout of new renewable energy supply for consumers.

The regulator said the rate will apply until 31 December 2026 and will be degressed by 0.5 percent annually until the full subscription of the additional 100-megawatt (MW) installation target.

Achieving 35% energy mix by 2030

“The Commission has formally adopted the FIT rate for the 4th round of run-of-river (RoR) hydropower, marking another step in the country’s renewable energy (RE) development to achieve the energy mix of 35 percent by 2030,” ERC chairperson Francis Saturnino Juan said at a recent media briefing.

The FIT4 process was initiated after the ERC received requests from Philhydro Association Inc. on 25 March, and from the Department of Energy (DoE) on 25 September seeking the immediate determination of a new FIT rate for the added 100-MW target.

The ERC posted a preliminary FIT4 rate for public comment in October, in line with the FIT Rules, followed by public consultations in November.

Submissions were received from Aboitiz Power Corporation, the DoE, Mangima Hydro Power Corporation, Philhydro Association, RCDG Construction Corp. and United Hydro Power Builders.

Previous installation target fully subscribed

DoE data as of October showed that the previous 250-MW installation target was fully subscribed, covering 31 projects with a combined capacity of 256.878 MW.

After reviewing the submissions and evidence, the ERC said it resolved to issue the FIT rate “until the full subscription of the 100MW installation target,” consistent with the policy objectives of the Renewable Energy Act of 2008.