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

2

I. BACKGROUND

3

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

4

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)

5

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)

7

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

8

-

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

9

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

10

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

11

12

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)



evaluation

2017 (filed

December 1, 2016)



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

14

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

15

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

16

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

18

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

19

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

20

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

21

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

22

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

23

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

24

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

25

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

26

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


PLANTS FOR 2018

COE – Certificate of Endorsement (to ERC) issued by DOE; With Nomination – issued by DOE to indicate 80% electro-mechanical completion

28

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


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


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

31

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

32

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

34

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



FORECAST COST RECOVERY REVENUE

( Forecast Annual RE Generation x

CRR Rate


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



FORECAST COST RECOVERY

REVENUE ( Forecast Annual RE

Generation x CRR Rate


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



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%



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:


2. CRR Rate




3. Latest DOE Line-up

COE-Certificate of Endorsement issued by the DOE

Nomination-Issued by the COE

47


FD 22,799,712,892 0.2686 91.61%





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:


2. CRR Rate




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;



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



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


FD 25,474,028,307 0.3001 90.79%





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


FD 24,747,694,310 0.2915 90.53%





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


FD 22,954,859,718 0.2704 91.25%





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:


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

2018 feed-in tariff allowance rate · pdf filerenewable energy act of 2008 (ra 9513)...

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