PetroEnergy Solar Unit Secures COC-FIT from ERC
July 14, 2016
The Energy Regulatory Commission (ERC) approved on July 12, 2016 the Certificate of Compliance as a Feed-in- Tariff eligible power plant (COC-FIT) for PetroSolar Corporation’s 50 MWp Tarlac-1 Solar Power Project. This approval follows the Provisional Authority to Operate as a Feed-in- Tariff eligible power plant (PAO-FIT) granted to the same solar facility by the ERC last March 30, 2016.
The Tarlac-1 solar facility covers 55 hectares of industrial land within the PEZA-registered Central Technopark in Tarlac City. It is the first solar energy plant of PetroSolar Corporation, a joint-venture firm 56%-owned by PetroGreen Energy Corporation (PGEC) and 44%-owned by EEI Power Corporation. PGEC is the renewable energy holding company of publicly-listed PetroEnergy Resources Corporation (PERC).
PERC President Milagros V. Reyes announced, “ERC’s COC-FIT approval for our Tarlac-1 solar facility testifies to our satisfactory compliance to all technical, organizational, legal and financial requirements to operate a solar power plant. As important, it guarantees FIT payments to PetroSolar from 10 February 2016 to 9 February 2036 at the approved FIT rate of Php 8.69/kwh. Along with the FIT payments for our 36 MW Nabas wind facility and the long-term energy supply contract for our base-load 20MW Maibarara-1 geothermal power station and its on-going 12 MW expansion (Maibarara-2), these assured revenue streams boost PERC’s expansion from our Gabon oil production towards renewable energy development and power generation. We shall continue to assess new investment opportunities in the country’s renewable energy industry under the current leadership of the Department of Energy (DOE) Secretary Alfonso Cusi.”
PGEC Vice President and COO F.G. Delfin Jr. declared, “Our Tarlac-1 solar project attained 80% electro-mechanical completion on December 23, 2015 and started delivery of power to the Luzon grid on January 27, 2016 ahead of the March 15, 2016 deadline for the 500MW solar FIT allocation. After the DOE granted our project the Certificate of Endorsement for FIT-eligibility (COE-FIT) last March 7, 2016, ERC approved PetroSolar’s PAO-FIT on March 30 officially making us qualified to receive FIT payments from TRANSCO, through a renewable energy payment agreement (REPA) that took effect on May 10, 2016. This COC-FIT release effectively supersedes the PAO-FIT and confirms and extends the FIT payments for 20 years. Not only will this assure our lenders and investors but it also ensures PetroSolar’s remittance of the national wealth royalty and ER 1-94 payments for the benefit of our host communities as long as we are generating power.”