Press Release
July 8, 2011


Senator Edgardo J. Angara urged the Energy Regulatory Commission (ERC) to quickly approve the Feed-in-Tariff (FIT) rates submitted by the National Renewable Energy Board (NREB) after investors expressed disappointment over delays in the implementation of RA 9513 or the Renewable Energy Act of 2008.

Angara, author of the said bill, made the call after Jessie O. Ang, country representative of the International Finance Corporation (IFC), told the press that they will not fund any Renewable Energy (RE) project without the subsidy in place.

"We have been waiting for that (FIT) since June last year [and] the government made so much hoopla about it, so they should just finish it," said Ang of the private sector investment arm of the World Bank Group.

"Investors are already jittery, given that they have been waiting long for a clear policy position on RE. The law is in place - why not implement it? The ERC needs to take heed of this and quickly approve the proposed FIT rates," said Angara.

Section 7 of RA 9513 mandates the creation of a FIT system to accelerate the development of emerging renewable energy resources such as geothermal, solar, hydro and wind.

The FIT rates submitted by NREB cover 20-year contracts, with provision for forex and inflation adjustments. Ang added that the NREB proposal is acceptable to the IFC given that other countries do not have provision for forex and inflation adjustments.

Angara, chair of the Congressional Commission on Science, Technology and Engineering (COMSTE), said that establishing FIT rates will provide a much needed boost to the Philippines' RE industry.

"By guaranteeing payments to potential RE developers for every kilowatt-hour they produce, FIT rates can help usher in a 'green' future, and lessen our dependence on fossil fuels," he stressed.

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