2018 FEED-IN TARIFF ALLOWANCE RATE · PDF fileRENEWABLE ENERGY ACT OF 2008 (RA 9513)...
Transcript of 2018 FEED-IN TARIFF ALLOWANCE RATE · PDF fileRENEWABLE ENERGY ACT OF 2008 (RA 9513)...
DINNA O. DIZON Manager, Compliance Monitoring Department
and Head, FIT-All Team
2018 FEED-IN TARIFF ALLOWANCE RATE APPLICATION
ERC Case No. 2017-079 RC EXPOSITORY PRESENTATION
ERC-Pasig City December 6, 2017
OUTLINE OF PRESENTATION
I. Background
II. FIT-All Rate 2018 Determination
III. Updated Calculation
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I. BACKGROUND
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RENEWABLE ENERGY ACT OF 2008 (RA 9513)
Encourages the development of renewable
energy resources in the country
• Minimize the country’s exposure to price
fluctuations in the international markets
• As tools to effectively prevent or reduce harmful
emissions and thereby balance the goals of
economic growth and developments with the
protections of health and the environment
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FIT SYSTEM
PURPOSE: To accelerate development of emerging RE resources through a fixed tariff mechanism
PROMULGATION OF RULES AND MECHANISMS: Energy Regulatory Commission (ERC) in consultation with the National Renewable Energy Board (NREB)
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FIT Coverage: Emerging RE Resources
6
MECHANICS AND GUIDELINES
1. FIT Rules (ERC Resolution No. 16 series of 2010)
2. FIT-All Guidelines (Guidelines on the Collection of the
Feed-in Tariff Allowance (FIT-All) and the Disbursement
of the FIT-All Fund – ERC Resolution No. 24 series of
2013)
3. RE Payment Agreement (REPA)/RE Supply
Agreement (RESA) Template (ERC Resolution No. 18
series of 2014)
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APPROVED FIT RATES (2012) – Applicable for 20 years
Note: Setting of FIT for Ocean technology has been deferred by the ERC
Biomass P6.63/kWh (250MW) P6.5969/kWh-degressed rate
Solar P9.68/kWh (50MW)-P1 P8.69/kWh (450MW)-P2
Run-of-River Hydro P5.90/kWh (250MW) P5.8705/kWh-degressed rate
Wind P8.53/kWh (200MW)-P1 P7.40/kWh (200MW)-P2
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-
2.0000
4.0000
6.0000
8.0000
10.0000
Hydro Wind Solar Biomass
5.90 8.53 9.68 6.63
5.6708 5.6708 5.6708 5.6708
0.2292
2.8592
4.0092
0.9592
P/k
Wh
Fit Differential P/kWh
CRR/Market Rate P/kWh
FIT
ILLUSTRATION: Feed-in Tariff and the Market Rate
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FEED IN TARIFF ALLOWANCE (FIT-ALL)
• Represents the difference between the FIT price
level and the prevailing/market prices (Cost
Recovery Rate or CRR), plus other components
• Will be charged to all end-users as a uniform P/kWh
charge
• Will be a separate line item in the power bill
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1. TransCo has been tasked as FIT-All Fund Administrator by virtue of ERC Resolution No. 15 series of 2012 issued in November 2012
2. First FIT-All collection remitted to the FIT-All Fund on March 13, 2015 on the basis of Provisional Authority for the FIT-All of P0.0406/kWh
3. First payment to a FIT-eligible RE Developer made on May 5, 2015
QUICK FACTS
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FIT-ALL RATE APPROVAL
YearRate as Applied,
P/kWhApproval Date
Provisional : P 0.0406/kWh January 2015 Billing Period
Final : P 0.0406/kWh December 10, 2015
Provisional : P 0.1240/kWh April 2016 Billing Period
Final : P 0.1830/kWhMay 9, 2017 (docketed
May 13, 2017)
No Provisional Authority
Issued -
Final : Pending Pending
No Provisional Authority
Issued to Date2018 (filed August 29,
2017)
0.2932 or the updated
amount at the time of
evaluation
2014-2015 (filed July
30, 2014)0.0406
2016 (filed
December 22, 2015)
0.1025 or the updated
amount at the time of
evaluation
2017 (filed
December 1, 2016)
0.2291 or the updated
amount at the time of
evaluation
SIGNED RENEWABLE ENERGY PAYMENT AGREEMENT
(REPA)
As of December 5, 2017
* - With FIT-COC and all other documentary requirements complied with; ready for payment/already being paid
FOR UPDATING
Number Capacity
(MW) Number
Capacity
(MW)
24 526.43 23 485.13
FIT 1: 9.68 7 109.38 6 68.08
FIT 2: 8.69 17 417.05 17 417.05
7 426.90 7 426.90
FIT 1: 8.53 3 249.90 3 249.90
FIT 2: 7.40 3 144.00 3 144.00
Bangui 1 & 2:
5.761 33.00 1 33.00
5 36.70 5 36.70
FIT 1: 5.9 5 36.69 5 36.69
Deg. Rate: 5.8705
15 117.41 11 110.24
FIT 1: 6.63 13 114.74 11 110.24
Deg.Rate: 6.5969 2 2.67
TOTAL 51 1,107.43 46 1,058.96 1,400
BIOMASS 250
Installation
TargetTECHNOLOGY
FIT Rate
(P/kWh)
EFFECTIVE REPA*SIGNED REPA
SOLAR
WIND
500
400
250HYDRO
FIT RE GENERATION
Note: Data do not reflect energy generation in 2015/2016/2017:
1) That have not actually been billed (one at a time billing of backlog per REPA)
2) Of potentially FIT-eligible RE Plants that have not been granted/have just been granted FIT COC to date but have COD in 2014 or 2015 or 2016
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2012-2015 2016
As of
November
15, 2017
Total
Wind 426.90 763,120 952,836 769,960 2,485,916
Solar 485.13 102,079 563,814 554,957 1,220,849
Biomass 108.03 233,445 488,266 452,131 1,173,841
Hydro 36.69 76,273 68,324 98,523 243,121
Total 1,056.75 1,174,916 2,073,240 1,875,571 5,123,727
Technology
ACTUAL ENERGY GENERATION BILLED (MWH)
Capacity
(MW)
COLLECTION EFFICIENCY
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FIT-ALL 2015 2016 2017 2018
Actual 93.90% 93.75% 93.55%*
As used in the Application
89.36% 96.03% 94.71% 94.62%**
CRR 2015 2016 2017 2018
Actual 99.02% 98.93% 98.43%*
As used in the Application
97.00% 99.27% 99.01% 97.99%**
* - as November 28, 2017 ** -as of Feb 28, 2017 (Dec 2016 Billing)
Note: Cash flows include both CRR and FIT-All
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FIT ALL FUND CASH FLOW, In Mn Php As of December 5, 2017
*Cash Inflows as November 28, 2017
2015 2016As of Dec 5,
2017*Total
Total Fund Cash Inflow 3,058.4 10,235.1 16,109.2 29,402.7
Total Fund Cash Outflow 2,738.0 10,106.7 16,555.9 29,400.7
Excess of Collection
over Disbursement 320.4 128.4 (446.8) 2.0
Cash, Beg 320.4 448.8
Fund Balance 320.4 448.8 2.0 2.0
Wind 46%
Solar 17%
Biomass 15%
Hydro 3%
Wind 5%
Solar 9%
Biomass 4%
Hydro 1%
STATUS OF PAYABLES As of December 5, 2017
UNPAID BALANCE Php 6,645.32Mn,
18.60%
PAYMENTS MADE* Php 29,086.49Mn,
81.40%
* - Does not include interest payment of PhP311.99Mn made as of date
Note: Payables include both CRR and FIT-All billed to the Fund 17
PAYMENT OF INTEREST, Php
Sec. 2.2.8 of the FIT-All Guidelines*
“The failure to promptly and/or fully pay the Actual FIT Revenue to any Eligible RE Plant for any Billing Period shall authorize the relevant Eligible RE Plant to charge the Administrator, upon the lapse of one Billing Period after the due date of the unpaid Actual FIT Revenue, monthly interests on all unpaid amounts based on a 91-day treasury bill rate plus 300 basis points until fully paid.”
* - also provided under Section 7.5 of the REPA
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Accrued Interest Due as of Nov 30, 2017 based
on Billed/Unpaid Generation, Php443,101,877.69
Actual Interest Paid as of Dec 5, 2017, Php 311,989,176.59
Unbilled Interest as of Dec 5, 2017, Php 131,112,701.11
II. 2018 FIT-All Rate Determination
Note: Calculations made were based on actual billing data as of May 2017 Billing Month
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Guidelines on the Collection of the Feed-in Tariff Allowance (FIT-All) and the Disbursement of the FIT-All Fund (“FIT-All Guidelines”) issued by the ERC
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BASIS
a. For 2018 FIT Rates, degression and adjustments due to inflation and forex were considered (in accordance with the FIT Rules)
b. As a rule, projected generation forecast provided by RE generators were used, otherwise DOE forecasts were used; or, if RE projections were perceived to be too high, then DOE forecasts were used
c. Actual energy generation levels of operational RE Plants which were available were considered
ASSUMPTIONS/CONSIDERATIONS
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d. 2017 estimated under-recoveries were included in the determination of the 2018 FIT-All
e. 2015-2017 Unbilled FIT Differential were included in the 2018 FIT-All computation in accordance with section 4.5 of the RE Payment Agreement
f. NREB recommended formula for Factor Rate from the 2014-2015 FIT-All application was used in the computation of WCA, with updated input data
Note: Line-up of plants are for computation purposes only; does not automatically entitle listed plants to FIT nor payment thereof
ASSUMPTIONS/CONSIDERATIONS
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ADMINISTRATION ALLOWANCE
(AA)
FIT DIFFERENTIAL
(FD)
WORKING CAPITAL
ALLOWANCE (WCA)
FIT ALL RATE,
P/kWh
DISBURSEMENT ALLOWANCE
(DA)
FORECAST NATIONAL SALES
(FNS)
FIT All (𝑃 𝑘𝑊ℎ ) = FD +WCA + AA + DA
FNS
FIT-ALL FORMULA
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𝐶𝐴𝐺𝑅𝑡𝑜,𝑡𝑛 = 𝑉𝑡𝑛𝑉𝑡𝑜
1𝑡𝑛−𝑡𝑜
− 1
FORECAST ANNUAL NATIONAL SALES, kWh
CAGR: Compounded Annual Growth Rate
Note: Data on Actual Electricity Sales sourced from DOE
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FORECAST ELECTRICITY SALES, kWh
2014 2015 2016 2017 2018
Luzon 47,240,505,000 50,589,323,000 55,413,149,000
Visayas 8,039,020,000 8,765,247,000 9,598,851,000
Mindanao 8,065,259,000 8,453,177,000 9,142,225,000
Sales, kWh 63,344,784,000 67,807,747,000 74,154,225,000 78,898,449,177 84,889,570,430
Growth Rate 4.13 4.62 6.40 7.59 7.78
ACTUAL ELECTRICITY SALES, kWh
FIT DIFFERENTIAL
TOTAL FIT REVENUE ( Forecast Annual RE
Generation x FIT Rate
FORECAST COST RECOVERY
REVENUE ( Forecast Annual RE
Generation x CRR Rate
(OVER)/UNDER RECOVERY
FIT DIFFERENTIAL
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DATA NEEDED SOURCE
FIT Eligible RE Actual/Forecast Annual Generation 2014-
2018DOE/RE Generator
FIT Rate ERC
CRR Rate
Luzon & Visayas (LWAP)
PEMC (36 months Ave.
LWAP ending May2017
Billing)
Mindanao (Blended Rate of Host DU)
DASURECO Apr2016-May2017 Billing
FIBECO Apr2016-May2017 Billing
SOCOTECO I Apr2016-May2017 Billing
SUKELCO,COTABATO LIGHT, DANECO and BUSECO www.kuryente.org
PROJECTED FIT ELIGIBLE RE CAPACITIES &
INSTALLATION TARGETS as of July 5, 2017
NO. OF
PLANTS
INSTALLED
CAPACITY,
MW
NO. OF
PLANTS
INSTALLED
CAPACITY, MW
BIOMASS 18 144.69 18 144.69 LUZON 11 94.32 11 94.32
VISAYAS 4 32.50 4 32.50
MINDANAO 3 17.87 3 17.87
HYDROPOWER 8 107.89 8 107.89
LUZON 3 20.56 3 20.56
VISAYAS 1 8.00 1 8.00
MINDANAO 4 79.33 4 79.33
SOLAR 24 526.43 24 526.43
LUZON 16 283.83 16 283.83
VISAYAS 6 225.88 6 225.88
MINDANAO 2 16.72 2 16.72
WIND 7 426.90 7 426.90
LUZON 5 336.90 5 336.90
VISAYAS 2 90.00 2 90.00
MINDANAO
TOTAL 57 1,205.91 57 1,205.91
LUZON 35 735.61 35 735.61
VISAYAS 13 356.38 13 356.38
MINDANAO 9 113.92 9 113.92
400
1,400
2017 2018
TECHNOLOGYINSTALLATION
TARGETS
250
250
500
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ELIGIBLE/PROJECTED FIT ELIGIBLE
PLANTS FOR 2018
COE – Certificate of Endorsement (to ERC) issued by DOE; With Nomination – issued by DOE to indicate 80% electro-mechanical completion 27
Date of
Commercial
Operation for
FIT
Developer Grid
Registered
Installed
Capacity (MW)
based on FIT COC
Capacity
Factor
BIOMASS 144.69
With PAYMENT
1 1.2 MW Payatas Landfill Methane Recovery and Power Generation Facility06/15/15 Pangea Green Energy Philippines, Inc. Luzon 1.37 87.96%
2 14.8 MW Montalban Landfill Methane Recovery and Electricity Generation06/15/15 Montalban Methane Power Corporation Luzon 8.19 73.26%
3 12.5 MW Bataan 2020 Rice hull-fired Cogen Plant 07/10/15 Bataan 2020 Inc. Luzon 11.10 93.42%
4 21 MW FFHC Bagasse-Fired Cogeneration Power Plant 06/15/15 First Farmers Holdings Corporation Visayas 8.00 53.42%
5 12 MWe (net) SJCi Power Rice Husk-Fired Biomass Power Plant Project11/02/14 San Jose City I Power Corporation Luzon 12.00 82.36%
6 19 MW Bagasse-fired Cogeneration Power Plant 11/30/12 Green Future Innovations Inc. Luzon 14.00 31.98%
7 20 MW Rice Husk-Fired Biomass Power Plant 10/06/15 Isabela Biomass Energy Corporation Luzon 18.00 92.05%
8 46 MW Bagasse-Fired Cogeneration Power Plant Project 01/20/15 Universal Robina Corporation Visayas 20.00 70.79%
9 12 MW Rice Husk-Fired Biomass Power Plant Project 02/27/16 Green Innovations for tomorrow Corporation Luzon 10.80 81.64%
10 5 MW Rice Husk-Fired Biomass Power Plant Project 10/10/16 Bicol Biomass Energy Corporation Luzon 5.00 85.11%
With COE
11 12.0 MW HPCo Bagasse Cogeneration Plant 02/04/15 Hawaiian-Philippines Company Visayas 2.00 60.62%
12 34 MW Bagasse-Fired Biomass Power Plant 10/23/15 Victoria Milling Company, Inc, Visayas 2.50 40.67%
13 8.8 MW Biomass Power Plant Project 12/14/16 AseaGas Corporation Luzon 2.21 90.41%
With Nomination
14 3.5 GEEC MW Biomass Cogeneration System 05/01/17 Green Earth Enersource Corporation Mindanao 1.77 92.60%
15 2 mw Biogas Power Plant Project 07/01/17 Asian Carbon Neutral Power Corporation Luzon 0.85 90.41%
Others In the DOE List
16 13.5 MW Biomass Power Plant Project 12/30/16 Lamsan Power Corporation Mindanao 13.50 90.41%
17 3 MW Biomass Power Plant Project 10/01/17 Philippine Trade Center, Inc. Mindanao 2.60 83.56%
18 10.8 MWe (net) SJCi Power Rice Husk-Fired Biomass Power Plant Project07/01/17 San Jose City I Power Corporation Luzon 10.80 91.51%
Total Biomass
ELIGIBLE/PROJECTED FIT ELIGIBLE
PLANTS FOR 2018
COE – Certificate of Endorsement (to ERC) issued by DOE; With Nomination – issued by DOE to indicate 80% electro-mechanical completion
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Date of
Commercial
Operation for
FIT
Developer Grid
Registered
Installed
Capacity (MW)
based on FIT COC
Capacity
Factor
HYDROPOWER 107.89
With PAYMENT
1 Sabangan Hydroelectric Power Project 06/02/15 Hedcor Sabangan, Inc. Luzon 14.96 40.07%
2 Tudaya 2 Hydroelectric Power Project * 06/15/15 Hedcor Tudaya, Inc. Mindanao 8.13 59.93%
3 Irisan 1 Hydroelectric Power Plant 04/30/12 HedCor (Aboitiz) Luzon 3.80 33.11%
4 Communal-Uddiawan Hydroelectric Power Plant 06/15/15 Smith Bell Luzon 1.80 44.25%
With COE
5 Villasiga Hydroelectric Power Project 04/17/16 Sunwest Water & Electric Co. Inc. Visayas 8.00 42.99%
Others In the DOE List
6 Manolo Fortich 1 HEP 10/01/17 Hedcor Bukidnon, Inc. Mindanao 43.40 59.93%
7 Manolo Fortich 2 HEP 10/01/17 Hedcor Bukidnon, Inc. Mindanao 25.40 59.15%
8 New Bataan Compostela Valley 2nd Qtr 2017 Euro Hydro Power (Asia) Holdings, Inc. Mindanao 2.40 65.34%
Total Hydropower
ELIGIBLE/PROJECTED FIT ELIGIBLE
PLANTS FOR 2018
COE – Certificate of Endorsement (to ERC) issued by DOE; With Nomination – issued by DOE to indicate 80% electro-mechanical completion 29
SOLAR 526.43
With PAYMENT
1 San Carlos Solar PV Power Project-Phase A 05/15/14 San Carlos Solar Energy Inc. Visayas 16.19%
2 San Carlos Solar PV Power Project Phase B 08/16/14 San Carlos Solar Energy Inc. Visayas
3 Pampanga Solar Power Project 02/05/15 Raslag Corporation Luzon 10.04 15.73%
4 4.1 MW Burgos Solar Power Project 03/05/15 Energy Development Corporation Luzon 4.16 17.20%
5 Ormoc Solar Power Project (Leyte Solar Power Project) 04/04/15 Phil. Solar Farm-Leyte, Inc. Visayas 30.38 14.35%
6 SM North Edsa Solar Power Project 04/07/15 Solar Philippines Commercial Roof top Proj. Inc.Luzon 1.50 10.27%
7 Pampanga Solar Power Project (Phase 2) 12/23/15 Raslag Corporation Luzon 13.14 16.65%
8 San Carlos Solar PV Power Project Phase I-C and I D Sept. 6, 2015 San Carlos Solar Energy Inc. Visayas 23.00 16.31%
9 Hermosa Solar Power Project 02/12/16 YH GREEN Energy Incorporated Luzon 14.51 17.92%
10 Tarlac Solar Power Project 02/10/16 PetroSolar Corporation Luzon 50.07 16.60%
11 Cabanatuan Solar Power Project 03/11/16 First Cabanatuan Renewable Ventures Inc. Luzon 10.26 17.45%
12 Burgos Solar Power Project (Phase 2) 01/19/16 Energy Development Corporation Luzon 2.66 17.38%
13 Calatagan Solar Power Project 03/11/16 Solar Philippines Calatagan Corporation Luzon 63.30 15.79%
14 Centrala Solar Power Project 12/09/15 NV Vogt Philippines Solar Energy One, Inc. Mindanao 6.23 15.16%
15 Curimao Solar Power Project 02/29/16 Mirae Asia Energy Corporation Luzon 20.00 18.08%
16 Valenzuela Solar Power Project 03/08/16 Valenzuela Solar Energy Inc. (VALSOL) Luzon 8.50 17.27%
17 Lian Solar Power Project 03/08/16 Absolut Distillers, Inc. (ADI) Luzon 2.04 14.15%
18 Bais Solar Power Project 03/11/16 Monte Solar Energy Inc. (Montesol) Visayas 18.00 15.97%
19 Clark Solar Power Poject 03/12/16 Enfinity Philippines Renewable Resources, Inc. Luzon 22.33 14.84%
20 Kibawe Solar Power Project 03/13/16 Asian Green Energy Corporation MIndanao 10.49 15.89%
21 Palauig Solar PP 03/13/16 Solar Powered Agri-Rural Communities Corp. (SPARC)Luzon 5.02 15.55%
22 Bulacan III Solar Power Project 03/14/16 Bulacan Solar Energy Corp. (BSEC) Luzon 15.00 15.31%
23 Cadiz Solar Power Project 03/14/16 Helios Solar Energy Corporation Visayas 132.50 16.04%
With COE
24 Cavite Economic Zone Solar Power Project 03/15/15 Majestics Energy Corporation Luzon 41.30 16.56%
22.00
ELIGIBLE/PROJECTED FIT ELIGIBLE
PLANTS FOR 2018
30
Date of
Commercial
Operation for
FIT
Developer Grid
Registered
Installed
Capacity (MW)
based on FIT COC
Capacity
Factor
WIND 426.90
With PAYMENT
1 Bangui Wind Power Project (Phase 3) 10/10/14 Northwind Power Development Corporation Luzon 18.90 28.67%
2 Burgos Wind Power Project (Phase 1 & 2) 11/11/14 EDC Burgos Wind Power Corporation Luzon 150.00 29.15%
3 Caparispisan Wind Energy Project 11/11/14 Northern Luzon Energy Renewable Energy CorporationLuzon 81.00 33.98%
4 San Lorenzo Wind Power Project 12/27/14 Trans-Asia Renewable Energy Corporation Visayas 54.00 25.53%
5 Pillilla Wind Power Project 06/09/15 Alternergy Wind One Corporation Luzon 54.00 28.21%
6 Bangui Wind Power Project (Phase 1 & 2) 06/15/15 Northwind Power Development Corporation Luzon 33.00 25.74%
7 Nabas Wind Energy Project 06/10/15 Petro Wind Energy, Inc. Visayas 36.00 34.18%
FORECAST ANNUAL GENERATION, MWH
Based on the lineup of RE plants considered 2012-2015, 2016 and 2017: combination of actual and estimated data
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Technology 2012-2015 2016 2017 2018 2019 Total
Biomass 280,234 533,237 829,715 971,501 990,232 3,604,917.55
Hydropower 89,291 101,869 255,819 516,527 516,546 1,480,052.30
Solar 155,064 636,684 739,093 742,932 739,090 3,012,863.56
Wind 776,988 952,836 1,088,370 1,108,040 1,108,040 5,034,273.88
Total 1,301,576 2,224,626 2,912,998 3,339,000 3,353,907 13,132,107
Technology 2012-2015 2016 2017 2018 2019 Total
Biomass 205,132 440,773 927,475 1,041,306 990,232 3,604,917.55
Hydropower 69,294 68,144 254,265 571,803 516,546 1,480,052.30
Solar 102,079 470,634 871,376 829,685 739,090 3,012,863.56
Wind 763,120 952,836 1,102,238 1,108,040 1,108,040 5,034,273.88
Total 1,139,625 1,932,387 3,155,355 3,550,834 3,353,907 13,132,107
Based on timing of Generation
Based on timing of Billing
ADJUSTED FIT RATE*, P/kWh
* - Based on TransCo’s understanding of the adjustment formula given in the FIT Rules
Base FIT Local ForeignShare Share
Biomass 6.63 47% 53%
Hydro 5.90 58% 42%
Solar 9.68
8.69Wind 8.53
7.40
33% 67%
40% 60%
Base CPI (2006= 100) 116.00
Base Peso to US$ ER 47.8125
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Note: No new entrant to the FIT System for 2018
𝐴𝑑𝑗𝑢𝑠𝑡𝑚𝑒𝑛𝑡 = 𝑧 𝑥 𝑅𝑃𝐶𝑃𝐼𝑛𝑅𝑃𝐶𝑃𝐼𝑜
+ 𝑦 𝑥 𝐹𝐸𝐴𝑛
𝐹𝐸𝐴𝑜
Where: Z= percentage share of local capital y= percentage share of foreign capital
2014-2015 2016 2017
Year 1 Entrant Year 2 Entrant Year 3 Entrant
Biomass
2014-2015 6.6300
2016 7.0508 6.6300
2017 7.2574 7.0508 6.5969
2018 7.5303 7.2574 7.0156
Hydro
2014-2015 5.9000
2016 6.4601 5.9000
2017 6.6217 6.4601 5.8705
2018 6.8543 6.6217 6.4278
Solar
2014-2015 9.6800
2016 9.9067 8.6900
2017 10.2550 8.8935
2018 10.6747 9.2062
Wind
2014-2015 8.5300
2016 8.9006 7.4000
2017 9.1869 7.7215
2018 9.5474 7.9699
For Bangui 1 & 2
2014-2015 5.7600
2016 6.0102
2017 6.2036
2018 6.4470
Technology FORMULA:
ASSUMPTIONS:
FORECAST COST RECOVERY RATE
(WESM), P/kWh
33
Month Luzon Visayas Month Luzon Visayas
1 Jun-14 6.7730 6.7300 19 Dec-15 2.4910 2.4700
2 Jul-14 8.1040 7.7450 20 Jan-16 2.0000 2.2940
3 Aug-14 5.6940 4.5710 21 Feb-16 2.2890 2.4020
4 Sep-14 5.5440 (0.5280) 22 Mar-16 3.2720 3.4260
5 Oct-14 3.5390 1.7060 23 Apr-16 3.3880 3.6300
6 Nov-14 3.2530 3.8740 24 May-16 2.7220 2.7990
7 Dec-14 2.0680 2.8120 25 Jun-16 4.6850 4.7310
8 Jan-15 3.3670 3.4770 26 Jul-16 2.8410 2.8120
9 Feb-15 5.0790 5.2250 27 Aug-16 4.0280 4.0650
10 Mar-15 5.0750 5.3370 28 Sep-16 2.7700 2.7320
11 Apr-15 2.8100 2.9050 29 Oct-16 2.5070 2.0170
12 May-15 4.4570 4.8390 30 Nov-16 2.2730 2.4160
13 Jun-15 6.3220 6.8640 31 Dec-16 2.1850 1.9550
14 Jul-15 4.5180 4.1860 32 Jan-17 1.9960 0.6060
15 Aug-15 3.6910 3.9530 33 Feb-17 3.4770 2.4080
16 Sep-15 2.1570 2.2840 34 Mar-17 2.8340 2.2690
17 Oct-15 2.4540 2.9990 35 Apr-17 4.1270 3.2330
18 Nov-15 3.1580 3.7360 36 May-17 3.4720 3.4660
Average 3.6506 3.4013
LWAP, Pesos per KWh LWAP, Pesos per KWh
HOST DUs BLENDED GENERATION COST, P/kWh
Note: WAGC – based on average of 12 months per FIT-All Guidelines
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DASURECO 4.6627 FIT-All Fund ACRR Payment of DASURECO
COTABATO LIGHT 2.8784 kuryente.org
BUSECO 3.7339 kuryente.org
FIBECO 4.7303 ACRR Rate from Host DU
SOCOTECO I 5.5160 ACRR Rate from Host DU
SUKELCO 3.7456 kuryente.org
DANECO 3.3827 kuryente.org
Host DUWeighted Average
Generation CostData Source
2015 2016 2017
FD claim, beg - 1,809,658,442.81 4,428,764,887.26
FD claim for the year 4,293,526,898.80 10,151,661,662.08 15,760,426,237.25
Total FD claim 4,293,526,898.80 11,961,320,104.89 20,189,191,124.51
FD payment for the year 2,483,868,456.00 7,532,555,217.63 11,520,387,118.74
FD claim, end 1,809,658,442.81 4,428,764,887.26 8,668,804,005.77
P/kWh 0.1021
FIT DIFFERENTIAL
TOTAL FIT REVENUE ( Forecast Annual RE
Generation x FIT Rate
FORECAST COST RECOVERY REVENUE
( Forecast Annual RE Generation x
CRR Rate
(OVER)/UNDER RECOVERY
FIT DIFFERENTIAL (UNDER-RECOVERY), PHP
35
* *
* actual
actual actual estimate
Estimated FD Under Recovery
Accruing to REs Already Billing 7,317,216,147.89
1,351,587,857.88
8,668,804,005.77
For REs that have not started to bill as
of May2017 Billing Month
FIT DIFFERENTIAL
TOTAL FIT REVENUE ( Forecast Annual RE
Generation x FIT Rate
FORECAST COST RECOVERY
REVENUE ( Forecast Annual RE
Generation x CRR Rate
(OVER)/UNDER RECOVERY
FIT DIFFERENTIAL, PHP
36
Particulars Amount P/kWh
2018 FIT Differential -2018 Gen 15,978,558,934.90 0.1882
2018 FIT Differential -2015 Gen 163,683,780.93 0.0019
2018 FIT Differential -2016 Gen 528,598,054.00 0.0062
2018 FIT Differential -2017 Gen 134,383,531.19 0.0016
2017 Under Recovery 8,668,804,005.77 0.1021
Total 25,474,028,306.79 0.3001
WCA t+1
Forecast Annual Payout
t+2
Factor Rate
WCA Ending Balancet
DATA NEEDED SOURCE
Forecast Annual Payoutt+2 As computed
Factor Rate NREB formula
WORKING CAPITAL ALLOWANCE, PHP
37
Technology 2019
Forecast Cost Recovery Revenue 12,060,632,424
FIT Differential 16,162,431,576
Administration Allowance 9,815,451
Disbursement Allowance 1,136,494
Forecast Annual Payout 28,234,015,945
2019 FORECAST ANNUAL PAYOUT, PHP
38
*per NREB Resolution No. 3 Series of 2014
Factor Rate
CRR- WESM
Total Annual Payout
Factor RateWESM
FD,AA,DA, CRRNon-
WESM
Total Annual Payout
Factor RateFIT All
FACTOR RATE*
39
CRRWESM
FD,AA, DA, CRRNon-
WESM
Annual Payout 10,133,104,453 17,862,770,743
Divided By: Total Annual Payout 27,995,875,196 27,995,875,196
Ratio 36.19% 63.81%
X Factor Rate 1.01% 13.71%
Weighted Factor Rate 0.37% 8.75%
Effective Factor Rate 9.1154%
WCA t+1 Forecast Annual
Payout t+2 Factor Rate
WCA Ending Balancet
WCA ENDING BALANCE, PHP
40
Note: WCA negative ending balance is proposed to be not included in the 2018 FIT-All
calculation and assumed to be absorbed by the computed 2018 WCA
CRR Ending Balance, Feb 28,
2018 (Dec 2017 Billing) 12,853,504.29
Estimated Accrued Interest,
Feb 28, 2018 587,825,685.74
WCA, Ending Balance (600,679,190.03)
WCA, Ending Balance,
P/kWh (0.0071)
WCA t+1 Forecast Annual
Payout t+2 Factor Rate
WCA Ending Balancet
WORKING CAPITAL ALLOWANCE (WCA), PHP
41
Technology 2018 2019
Forecast Annual Payout 28,234,015,945
x Factor Rate 9.1154%
Equals: Portion of Annual Payout 2,573,633,043
Less: WCA Ending Balance (Year n) -
Working Capital Allowance 2,573,633,043
WCA, Php/kWh 0.0303
ADMINISTRATION ALLOWANCE (AA), PHP
42
Notes: 1. Assumes a permanent FIT-All Division comprising of 10
personnel 2. Based on TransCo Board approved Corporate Operating
Budget
@Current Rate
PS 7,224,021.40
MOOE 2,498,451.56
CAPEX 240,000.00
Total 9,962,472.96
P/kWh 0.00012
DISBURSEMENT ALLOWANCE, PHP
43
Fixed Trustee Fee (60k/Month) 720,000.00
BSP Supervision Fee
(1/28 of 1% of the Average Monthly
Fund Balance)
363,993.58
RTGS Fee 52,500.00
Estimated Trustee Fee 1,136,493.58
Disbursement Allowance 0.00001
COMPONENTS Amount (Php) Rate (P/kWh) Share
FD 25,474,028,307 0.3001 90.79%
2018 FIT Differential -2018 Gen 15,978,558,935 0.1882 56.95%
2018 FIT Differential -2015 Gen 163,683,781 0.0019 0.58%
2018 FIT Differential -2016 Gen 528,598,054 0.0062 1.88%
2018 FIT Differential -2017 Gen 134,383,531 0.0016 0.48%
2017 Under Recovery 8,668,804,006 0.1021 30.90%
WCA 2,573,633,043 0.0303 9.17%
AA 9,962,473 0.00012 0.04%
DA 1,136,494 0.00001 0.00%
Total 28,058,760,317
FNS, kWh 84,889,570,430
FIT-All, Php/kWh
0.3305
AA FD WCA FIT ALL RATE,
P/kWh DA FNS
SUMMARY OF
2018 FIT ALL RATE APPLICATION, P/kWh
44
Assumptions:
1. Adjusted FIT Rates
2. CRR Rate
Actual Generation and FD for those with Billings as of May 2017 Billing
Monthly LWAP (for those 2012-May 2017 without Actual FD)
36 Monthly Average LWAP for June 2017 to 2018
3. Latest DOE Line-up
2018 FIT-All
Rate Build-Up
0.1830SOURCES OF INCREASE (DECREASE) Pesos Pesos/kWh
(13,947,168,952.69) (0.0301) 0.1529
6,993,175,217.02 0.0824 0.2353
FIT Differential 6,218,425,441.95 0.0733
WCA 774,749,775.07 0.0091
958,556,553.83 0.0113 0.2466
FIT Differential 670,163,248.83 0.0079
WCA 288,393,305.00 0.0034
328,689,875.61 0.0039 0.2505
WCA 328,689,875.61 0.0039
10,870,588.53 0.0001 0.2506
Administration Allowance 9,962,472.96 0.0001
AA Effect on WCA 908,115.57 0.0000
289,490.69 0.0000 0.2506
Disbursement Allowance 265,307.00 0.0000
DA Effect on WCA 24,183.70 0.0000
(73,318,489.99) (0.0009) 0.2497
6,859,145,562.96 0.0808 0.3305NET INCREASE (DECREASE) (5,995,147,691.14) 0.1475
2016 FIT-All Rate Decision
Increase from 2016 FIT-All
6. Change in Disbursement Allowance
8. Change in FIT Differential Underrecoveries
7. FD for 2015, 2016 and 2017 Generation
paid 1n 2018
1. Change In Energy Sales (Denominator)
2. Change in Energy Generation
3. Change in FIT Rate/ACRR
4. Change in Factor Rate
5. Inclusion of Administration Allowance
2018 FIT-ALL RATE BUILD-UP FROM ERC 2016 DECISION
45
Increase/
(Decrease)Total
Increase/
(Decrease)Total
Increase/
(Decrease)Total
MW 1,049 56 1,105 3 1,108 98 1,206
MWH 2,605,132 127,080 2,732,212 21,066 2,753,278 585,723 3,339,000
- - - - - -
FIT-ALL Rate, P/kWh
FD 0.2407 0.0267 0.2672 0.0014 0.2686 0.0315 0.3001
2018 FD 0.1607 0.0147 0.1753 0.0009 0.1762 0.0219 0.1980
2017 Under Recovery 0.0800 0.0119 0.0919 0.0005 0.0924 0.0096 0.1021
WCA 0.0231 0.0011 0.0243 0.0002 0.0245 0.0059 0.0303
AA 0.0001 0.0000 0.0001 0.0000 0.0001 0.0000 0.0001
DA 0.00001 0.0000 0.00001 0.0000 0.00001 0.0000 0.00001
FIT-ALL Rate, P/kWh 0.2639 0.0278 0.2916 0.0016 0.2932 0.0373 0.3305
With Billings
As of July 5,
2017
With COE With Nomination DOE List
INCREMENTAL MOVEMENT OF THE 2018 FIT-ALL FOR DIFFERENT RE PLANT/PROJECT CATEGORIES
46
Assumptions:
1. Adjusted FIT Rates
2. CRR Rate
Actual Generation and FD for those with Billings as of May 2017 Billing
Monthly LWAP (for those 2012-May 2017 without Actual FD)
36 Monthly Average LWAP for June 2017 to 2018
3. Latest DOE Line-up
COE-Certificate of Endorsement issued by the DOE
Nomination-Issued by the COE
47
COMPONENTS Amount (Php) Rate (P/kWh) Share
FD 22,799,712,892 0.2686 91.61%
2018 FIT Differential -2018 Gen 14,130,111,801 0.1665 56.78%
2018 FIT Differential -2015 Gen 163,683,781 0.0019 0.66%
2018 FIT Differential -2016 Gen 528,598,054 0.0062 2.12%
2018 FIT Differential -2017 Gen 134,383,531 0.0016 0.54%
2017 Under Recovery 7,842,935,725 0.0924 31.51%
WCA 2,076,692,932 0.02446 8.34%
AA 9,962,473 0.00012 0.04%
DA 1,059,319 0.00001 0.00%
Total 24,887,427,616
FNS, kWh 84,889,570,430
FIT-All, Php/kWh
0.2932
AA FD WCA FIT ALL RATE,
P/kWh DA FNS
Assumptions:
1. Adjusted FIT Rates
2. CRR Rate
Actual Generation and FD for those with Billings as of May 2017 Billing
Monthly LWAP (for those 2012-May 2017 without Actual FD)
36 Monthly Average LWAP for June 2017 to 2018
3. Latest DOE Line-up- Up to With Nomination
SUMMARY OF
2018 FIT ALL RATE APPLICATION, P/kWh
IMPACT OF FIT-ALL RATE TO END-CONSUMERS
Up to With Nomination
FIT-All Rate
ComponentsP/kWh
Consuming 100
kWh/month,
Pesos
Consuming 200
kWh/month,
Pesos
FD 0.2686 26.86 53.72
WCA 0.0245 2.45 4.90
AA 0.0001 0.01 0.02
DA 0.00001 0.00 0.00
TOTAL 0.2932 29.32 58.64
Billing Month: Jun 2017 Consumption: 292 kWh FIT-All Charge: Php 53.44 % to Total Bill: 1.66% of the Total Bill
FIT-All Current Rate, Php 0.1830/kWh
Billing Month: Jun 2017 Consumption: 292 kWh FIT-All = Php 85.61 % to Total Bill = 2.63% of the Total Bill
2018 FIT-All Applied, Php 0.2932/kWh Impact of Application:
Impact for Other Energy Consumption @ FIT-All Rate of Php 0.2932/kWh
100 200 300 400
FIT-All
Charge, Php 29.32 58.64 87.96 117.04
Consumption (kWh)
FIT-All Impact to Consumers
49
For the Prayer in the Application as to the amount of FIT-All being requested for approval, we will include the phrase, “OR IN THE ALTERNATIVE, such other amount that may arise from new and updated information not heretofore available to the Applicant at the time of filing of the present application”
PRAYER IN THE APPLICATION
50
UPDATE
WHEREFORE, premises considered, it is most respectfully prayed of this Honorable Commission that:
a. Pending hearing on the merits of the present Application, provisional authority to collect the FIT-All of Php/kWh 0.2932 effective January 2018 billing period be issued;
b. The Collection Agents – DUs, REs, and NGCP – be directed to bill, collect and remit the FIT-All to the FIT-All Fund as provided in the FIT-All Guidelines;
c. PEMC and the Host DUs be directed to remit the ACRR to the FIT-All Fund as provided in the FIT-All Guidelines;
For the Prayer in the Application as to the amount of FIT-All being requested for approval, we will include the phrase, “OR IN THE ALTERNATIVE, such other amount that may arise from new and updated information not heretofore available to the Applicant at the time of filing of the present application”
PRAYER IN THE APPLICATION
51
UPDATE
d. The Factor Rate resulting from an updating of inputs in the recommended formula by the NREB under the 2014-2015 FIT-All Application (ERC Case No. 2014-109RC) be approved and applied in the computation of the WCA and the FIT-All Rate for 2018;
e. After due notice and hearing, a FIT-All Rate of Php/kWh 0.2932 for 2018 computed for RE Projects with at least nomination from DOE for eligibility under the FIT system be approved;
e.1 OR IN THE ALTERNATIVE, after due notice and hearing, a FIT-All Rate for 2018 based on new evidence presented at the trial but not available to the Applicant at the time of the filing of the present application be approved; and
For the Prayer in the Application as to the amount of FIT-All being requested for approval, we will include the phrase, “OR IN THE ALTERNATIVE, such other amount that may arise from new and updated information not heretofore available to the Applicant at the time of filing of the present application”
PRAYER IN THE APPLICATION
52
UPDATE
f. TransCo be exempt from payment of permit/supervision fee, if any.
Other reliefs as may be just and equitable under the premises are likewise most respectfully prayed for.
III. Updated Calculation
53
RE PLANT STATUS
54
As of December 5, 2017
No. MW No. MW No. MW No. MW No. MW
SOLAR 23 485.13 1 41.30 24 526.43
WIND 7 426.90 7 426.90
BIOMASS 10 108.03 1 2.21 2 4.50 3 16.12 16 130.86
HYDRO 5 36.69 1 8.50 6 45.19
TOTAL 45 1056.75 1 2.21 3 45.80 4 24.62 53 1,129.38
TOTALPlant Type
WITH BILLING AS OF
Dec 5 P.D.
EFFECTIVE BUT
NOT YET
BILLING
WITH COE FROM
DOE
WITH
NOMINATION
FROM DOE
UPDATED 2018 FIT ALL RATE AS OF DECEMBER 5, 2017 (updated data as of October 2017 Billing Period)
Assumptions
55
As Filed Update Remarks
1. Forecast Cost Recovery
Rate (P/kWh)
based on 36 months
ave. LWAP (Jun2014-
May2017)
based on 36 months
ave. LWAP (Aug2014-
Jul2017)
Luzon 3.6506 3.4202
Visayas 3.4013 3.1819
Mindanao 3.6588 3.6887 Sept 2016-Oct 2017 Billing
2. 2017 Generation, MWh
2017 2,912,997.61 2,861,367.63 Actual Generation and FD for
those with Bill ings as of
October 2017 Bill ing
2018 3,339,000.46 3,380,000.46
2018(Eligible down to
at least Nomination) 2,753,277.66 2,901,197.66
3. FD Under-Recovery 8,668,804,005.77 7,539,186,280.37
4. Factor Rate 9.1154% 9.2751%Increase in FD % Share due
to updating of FCRR
UPDATED 2018 FIT ALL RATE AS OF December 5, 2017 (updated data as of October 2017 Billing Period)
As Filed
56
COMPONENTS Amount (Php) Rate (P/kWh) Share
FD 25,474,028,307 0.3001 90.79%
2018 FIT Differential -2018 Gen 15,978,558,935 0.1882 56.95%
2018 FIT Differential -2015 Gen 163,683,781 0.0019 0.58%
2018 FIT Differential -2016 Gen 528,598,054 0.0062 1.88%
2018 FIT Differential -2017 Gen 134,383,531 0.0016 0.48%
2017 Under Recovery 8,668,804,006 0.1021 30.90%
WCA 2,573,633,043 0.0303 9.17%
AA 9,962,473 0.0001 0.04%
DA 1,136,494 0.00001 0.00%
Total 28,058,760,317
FNS, kWh 84,889,570,430
FIT-All, Php/kWh
0.3305
COMPONENTS Amount (Php) Rate (P/kWh) Share
FD 24,747,694,310 0.2915 90.53%
2018 FIT Differential -2018 Gen 16,124,908,864 0.1900 58.99%
2018 FIT Differential -2015 Gen 425,222,625 0.0050 1.56%
2018 FIT Differential -2016 Gen 594,952,981 0.0070 2.18%
2018 FIT Differential -2017 Gen 63,423,560 0.0007 0.23%
2017 Under Recovery 7,539,186,280 0.0888 27.58%
WCA 2,576,389,293 0.0303 9.43%
AA 9,962,473 0.0001 0.04%
DA 1,425,987 0.00002 0.01%
Total 27,335,472,063
FNS, kWh 84,889,570,430
FIT-All, Php/kWh
0.3220
INCREMENTAL MOVEMENT OF THE 2018 FIT-ALL FOR DIFFERENT RE PLANT/PROJECT CATEGORIES
As of December 5, 2017 Payment Date
57
Increase/
(Decrease)Total
Increase/
(Decrease)Total
Increase/
(Decrease)Total
Increase/
(Decrease)Total
MW 1,057 2 1,059 46 1,105 25 1,129 85 1,214
MWH 2,635,262 17,503 2,652,765 79,447 2,732,212 168,986 2,901,198 478,803 3,380,000
- - - - - - - -
FIT-ALL Rate, P/kWh
FD 0.2334 0.0018 0.2352 0.0213 0.2565 0.0140 0.2704 0.0211 0.2915
2018 FD 0.1621 0.0010 0.1631 0.0153 0.1784 0.0078 0.1862 0.0165 0.2027
2017 Under Recovery 0.0713 0.0007 0.0720 0.0061 0.0780 0.0062 0.0842 0.0046 0.0888
WCA 0.0231 0.0001 0.0232 0.0009 0.0241 0.0017 0.0258 0.0046 0.0303
AA 0.0001 0.0000 0.0001 0.0000 0.0001 0.0000 0.0001 0.0000 0.0001
DA 0.00002 0.00000 0.00002 0.0000 0.00002 0.0000 0.00002 0.0000 0.00002
FIT-ALL Rate, P/kWh 0.2566 0.0019 0.2585 0.0222 0.2807 0.0157 0.2963 0.0257 0.3220
With Billings
As of
December 5,
2017
Effective but not yet billing With COE With Nomination DOE List
COMPONENTS Amount (Php) Rate (P/kWh) Share
FD 22,954,859,718 0.2704 91.25%
2018 FIT Differential -2018 Gen 14,724,718,293 0.1735 58.54%
2018 FIT Differential -2015 Gen 425,222,625 0.0050 1.69%
2018 FIT Differential -2016 Gen 594,952,981 0.0070 2.37%
2018 FIT Differential -2017 Gen 63,423,560 0.0007 0.25%
2017 Under Recovery 7,146,542,260 0.0842 28.41%
WCA 2,188,934,465 0.0258 8.70%
AA 9,962,473 0.0001 0.04%
DA 1,425,987 0.0000 0.01%
Total 25,155,182,643
FNS, kWh 84,889,570,430
FIT-All, Php/kWh
0.2963
UPDATED FIT ALL RATE AS OF December 5, 2017 (updated data as of October 2017 Billing Month)
Using line-up of RE Plants with at least Nomination from the DOE as of December 5, 2017
58
Assumptions:
1. Adjusted FIT Rates
2. CRR Rate
Actual Generation and FD for those with Billings as of October 2017 Billing
Monthly LWAP (for those 2012-July 2017 without Actual FD)
36 Monthly Average LWAP for Aug 2017 to 2018
3. Latest DOE Line-up- Up to With Nomination
END OF PRESENTATION Thank you.
Telephone No.: (02) 902-1500 loc. 86230/86231/1579 Email Address: [email protected] [email protected] Website: http://transco.ph/feed-in-tariff
60
Estimated FD Under-Recovery corresponding to RE Generators that have not started to bill as of May 2017 Billing, In Php
BIOMASS
Hawaiian-Philippines Company 33,650,674.27
Victoria Milling Company, Inc, 46,884,408.87
AseaGas Corporation 61,504,368.85
Green Earth Enersource Corporation 23,493,061.15
Asian Carbon Neutral Power Corporation 12,953,752.82
Lamsan Power Corporation 257,247,277.71
Philippine Trade Center, Inc. 17,634,337.76
San Jose City I Power Corporation 139,753,352.16
HYDROPOWER -
Sunwest Water & Electric Co. Inc. 94,887,742.72
Hedcor Bukidnon, Inc. 134,946,217.68
Hedcor Bukidnon, Inc. 77,947,209.61
Repower Energy Developer Corporation 9,473,880.74
SOLAR -
Majestics Energy Corporation 441,211,573.54
TOTAL 1,351,587,857.88
In compliance with ERC directive during the Davao leg expository hearing on November 21, 2017