FEEDFEED-IN TARIFF (FIT) Issues & Challenges

FIT DESIGN CONSIDERATIONS

Be simple and transparent Provide sufficient incentive to drive development Consider the impact on overall cost and system reliability Minimize burden to consumers

BASIC FIT DESIGN ADOPTED

Fixed FITs Differentiated by technology 20-year duration Subject to degression Linked to installation targets per technology FIT subsidy in the form of uniform Peso/kWh charge (FIT-All) Subject to review and adjustment

BASIC FIT FRAMEWORK

End-Users (Directly Connected)
FIT-All (P/kWh)

On-Grid End-Users
FIT-All (P/kWh)

RE Developer (Grid Connected)

Transmission (NGCP)
for excess

Distribution (DU)

RE Developer (Embedded)
4

ISSUES ON FIT-ALL, COLLECTIONS & PAYMENTS

End-Users (Directly Connected)
FIT-All P/kWh

On-Grid End-Users
FIT-All P/kWh

FIT

RE Developer (GridConnected)

WESM

FIT-All Fund (NGCP)

APPC (1)

Distribution Utility
APPC (2)

FIT
(less APPC under scenario 2)

RE Developer (Embedded)
5

THANK YOU!

www.erc.gov.ph
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