2020 feed-in tariff allowance rate application erc … · mechanics and guidelines 1. fit rules...

ROGELYN T. RONQUILLOManager, FIT-All Fund Administration Division

2020 FEED-IN TARIFF ALLOWANCE RATE APPLICATION

ERC Case No. 2019-056 RCEXPOSITORY PRESENTATION

ERC-Davao CityOctober 16, 2019

OUTLINE OF PRESENTATION

I. Background

II. FIT-All Rate 2020 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 ofemerging RE resources through a fixed tariffmechanism

PROMULGATION OF RULES AND MECHANISMS: EnergyRegulatory Commission (ERC) in consultation withthe 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 and

later amended through ERC Resolution No. 15 series of

2012)

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)-P1P8.69/kWh (450MW) P2

Run-of-River Hydro P5.90/kWh (250MW)

P5.8705/kWh (degressed rate)Wind P8.53/kWh (200MW)

P7.40/kWh (200MW)

8

-

2.0000

4.0000

6.0000

8.0000

10.0000

Hydro Wind Solar Biomass

5.90 8.53 9.68 6.63

3.0161 3.0161 3.0161 3.0161

2.8839

5.5139

6.6639

3.6139

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 FundAdministrator by virtue of ERC Resolution No. 15series of 2012 issued in November 2012

2. First FIT-All collection remitted to the FIT-All Fundon March 13, 2015 on the basis of ProvisionalAuthority for the FIT-All of P0.0406/kWh

3. First payment to a FIT-eligible RE Developer madeon May 5, 2015

QUICK FACTS

11

12

FIT-ALL RATE APPROVAL

Year Rate as Applied, P/kWh Approval 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 : P 0.2563/kWhFeb 27, 2018 (docketed May 11,

2018) effective Jun2018 Billing


Issued -

Final : P 0.2226/kWhMarch 12, 2019 (docketed March 29,

2019) effective Apr2019 Billing


Issued to Date

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)



2018

(filed August 29,

2017)



2019

(filed on July 27,

2018)



2020

(filed on July 30,

2019)



FIT-ALL FUND ADMINISTRATION

SIGNED RENEWABLE ENERGY PAYMENT AGREEMENT (REPA)As of September 5, 2019

* - With FIT-COC and all other documentary requirements complied with; ready for payment/already being paid

13

Number Capacity

(MW) Number

Capacity

(MW) 24 525.95 23 484.65

FIT 1: 9.68 7 108.90 6 67.60

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

11 94.64 7 89.04

FIT 1: 5.9 5 34.60 5 34.60

Deg. Rate: 5.8705 6 60.04 2 54.44

21 143.83 16 131.63

FIT 1: 6.63 14 121.56 12 117.06

Deg.Rate: 6.5969 7 22.26 4 14.56

TOTAL 63 1,191.31 53 1132.22 1,400

BIOMASS 250

Installation

TargetTECHNOLOGY

FIT Rate

(P/kWh)

EFFECTIVE REPA*SIGNED REPA

SOLAR

WIND

500

400

250HYDRO

RE GENERATION

14

Note: Data do not reflect energy generation in 2015/2016/2017/2018/2019:

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 earlier COD

2015 2016 2017 2018Sept 5,

2019 PDTotal

Wind 426.90 763,120 952,836 1,074,849 1,135,082 480,815 4,406,701

Solar 484.65 102,079 571,791 660,721 693,258 403,286 2,431,134

Biomass 131.63 264,569 512,081 592,919 715,107 403,413 2,488,089

Hydro 43.10 85,760 94,323 149,094 167,456 69,603 566,236

Total 1086.28 1,215,528 2,131,031 2,477,583 2,710,902 1,357,116 9,892,160

TechnologyCapacity

(MW)

ACTUAL ENERGY GENERATION BILLED (MWH)

COLLECTION EFFICIENCY

FIT-ALL

COST RECOVERY RATE (CRR)

* - as of December 31, 2018 (Oct 2018 Billing)** -as of Feb 28, 2019 (Dec 2018 Billing)

15

2015 2016 2017 2018 2019

Actual 93.90% 93.75% 93.77% 94.04%*

GCG Performance Target 92.50% 93.75% 94.00% 94.00%

Per Application

89.36% 96.03% 94.71% 94.89% 94.35%**

2015 2016 2017 2018 2019

Actual 99.02% 98.93% 98.87% 98.53%*

Per Application

97.00% 99.27% 99.01% 98.85% 98.48%**

FIT ALL FUND CASH FLOW, In Mn PhpAs of September 5, 2019

Note: Cash flows include both CRR and FIT-All

16

*Cash Inflows as of August 28, 2019

2015 2016 2017 2018

As of

September 5,

2019Total

Total Fund Cash Inflow 3,058.4 10,235.1 18,006.7 26,271.6 21,429.0 79,000.8

Total Fund Cash Outflow 2,738.0 10,106.7 17,641.3 26,197.8 15,824.4 72,508.3

Excess of Collection over

Disbursement 320.4 128.4 365.3 73.8 5,604.6 6,492.5

Cash, Beg 320.4 448.8 814.2 887.9

Fund Balance 320.4 448.8 814.2 887.9 6,492.5 6,492.5

PAYMENT TO RE DEVELOPERSAs of September 5, 2019

Note: Payables include both CRR and FIT-All billed to the Fund17

Biomass,20.97%Php15,032.62Mn

Solar, 28.02%Php20,090.09Mn

Hydro, 4.09%Php2,931.93Mn

Wind, 46.92%Php33,636.94Mn

PAYMENTS MADE* Php 71,691.59Mn,

100%

• - Does not include interest payment of PhP811.62Mn made as of date

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 duedate of the unpaid Actual FIT Revenue, monthly interests on all unpaidamounts 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

838,050,425.02

811,619,934.15

26,430,490.87

Accrued Interest Due as of August 31,

2019 based on Billed/ Unbilled

Actual Interest Billed/Paid as of

September 5, 2019 , Php

Unbilled Interest as of September 5,

2019

II. 2020 FIT-All Rate Determination

Note: Calculations made were based on actual billing data as of May 2019 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 2020 FIT Rates, degression and adjustmentsdue to inflation and forex were considered (inaccordance with the FIT Rules)

b. Degressed rates assumed for biomass and hydroplants under the extension

c. As a rule, projected generation forecast providedby RE generators were used, otherwise DOEforecasts were used; or, if RE projections wereperceived to be too high, then DOE forecasts wereused

d. Actual energy generation levels of operational REPlants which were available were considered

ASSUMPTIONS/CONSIDERATIONS

21

e. 2015-2019 Unbilled FIT Differential were included inthe 2020 FIT-All computation in accordance with4.5 of the RE Payment Agreement (for backlogbillings).

f. NREB recommended formula for Factor Rate fromthe 2014-2015 FIT-All application was used in thecomputation of WCA, with updated input data

Note: Line-up of plants are for computation purposesonly; does not automatically entitle listed plantsto FIT nor payment thereof

ASSUMPTIONS/CONSIDERATIONS

22

ADMINISTRATION ALLOWANCE

(AA)

FIT DIFFERENTIAL

(FD)

WORKING

CAPITALALLOWANCE

(WCA)FIT ALL RATE,

P/kWh

DISBURSEMENT ALLOWANCE

(DA)

FORECAST NATIONAL SALES

(FNS)

FIT All ( Τ𝑃 𝑘𝑊ℎ) =FD +WCA + AA + DA

FNS

FIT-ALL FORMULA

23

2015 2016 2017 2018 2019 2020 2021

Luzon 49,904,475,000 54,621,664,000 57,393,123,000 60,568,922,000

Visayas 8,709,994,000 9,539,513,000 9,984,182,000 10,758,253,000

Mindanao 8,365,699,000 9,031,509,000 9,381,397,000 10,127,247,000

Sales, kWh 66,980,168,000 73,192,686,000 76,758,702,000 81,454,422,000 86,943,571,741 92,079,031,292 97,837,447,747

Growth Rate 4.20 5.94 7.04 6.74 5.91 6.25 6.30

FORECAST ELECTRICITY SALES, kWhACTUAL ELECTRICITY SALES, kWh

𝐶𝐴𝐺𝑅𝑡𝑜,𝑡𝑛 =𝑉𝑡𝑛𝑉𝑡𝑜

1𝑡𝑛−𝑡𝑜

− 1

FORECAST ANNUAL NATIONAL SALES, kWh

CAGR: Compounded Annual Growth Rate

Notes: 2015-2018 Data on Actual Electricity Sales sourced from DOE; net of SPUG areas

24

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 2014-2021DOE/RE Generator

FIT Rate ERC

CRR Rate

Luzon & Visayas PEMC (36 months Ave. LWAP ending

Mar2019 Billing)

Mindanao

Blended Rate of Host DUs (ending

May2019 Billing / Average CRR Rate of

Mindanao (December2018 Billing)

PROJECTED FIT ELIGIBLE RE CAPACITIES & INSTALLATION TARGETS as of July 3, 2019

26

NO. OF

PLANTS

INSTALLED

CAPACITY,

MW

NO. OF

PLANTS

INSTALLED

CAPACITY, MW

BIOMASS 31 250.50 31 250.50 LUZON 16 114.21 16 114.21

VISAYAS 11 115.45 11 115.45

MINDANAO 4 20.84 4 20.84

HYDROPOWER 20 172.43 20 172.43

LUZON 13 59.99 13 59.99

VISAYAS 3 31.10 3 31.10

MINDANAO 4 81.34 4 81.34

SOLAR 24 525.95 24 525.95

LUZON 16 283.73 16 283.73

VISAYAS 6 225.50 6 225.50

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 82 1,375.78 82 1,375.78

LUZON 50 794.83 50 794.83

VISAYAS 22 462.05 22 462.05

MINDANAO 10 118.90 10 118.90

400

1,400

2019 2020

TECHNOLOGYINSTALLATION

TARGETS

250

250

500

PROJECTED FIT ELIGIBLE PLANTS FOR

2020

27

Date of

Commercial

Operation for

FIT

Developer Grid

Registered

Installed

Capacity (MW)

based on DOE-

COE

Capacity

Factor

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

BIOMASS 250.50

With Billing as of July 5, 2019

1 Payatas Landfill Methane Recovery and Power Generation Facility06/15/15 Pangea Green Energy Philippines, Inc. Luzon 0.876 96.71%

2 Montalban Landfill Methane Recovery and Electricity Generation06/15/15 Montalban Methane Power Corporation Luzon 4.300 89.88%

3 Bataan 2020 Rice hull-fired Cogen Plant 07/10/15 Bataan 2020 Inc. Luzon 11.10 96.99%

4 SJCi Power Rice Husk-Fired Biomass Power Plant Project 11/02/14 San Jose City I Power Corporation Luzon 12.00 83.10%

5 GFII Bagasse-fired Cogeneration Power Plant 11/30/12 Green Future Innovations Inc. Luzon 14.00 21.91%

6 IBEC Rice Husk-Fired Biomass Power Plant 10/06/15 Isabela Biomass Energy Corporation Luzon 18.00 96.99%

7 GIFT Rice Husk-Fired Biomass Power Plant Project 02/27/16 Green Innovations for tomorrow Corporation Luzon 10.80 78.36%

8 BBEC Rice Husk-Fired Biomass Power Plant Project 10/10/16 Bicol Biomass Energy Corporation Luzon 4.40 95.89%

9 ASEAGAS Biomass Power Plant Project 12/14/16 AseaGas Corporation Luzon 2.21 0.00%

10 SJCi Power Rice Husk-Fired Biomass Power Plant Project 09/22/17 San Jose City I Power Corporation Luzon 10.80 92.05%

11 Payatas Landfill Methane Recovery and Power Gen. Facility 02/17/17 Pangea Green Energy Philippines, Inc. Luzon 0.424 96.71%

12 ACNC Biogas Power Plant Project 07/21/17 Asian Carbon Neutral Power Corporation Luzon 1.70 93.15%

13 FFHC Bagasse-Fired Cogeneration Power Plant 06/15/15 First Farmers Holdings Corporation Visayas 8.00 54.66%

14 URC Bagasse-Fired Cogeneration Power Plant Project 01/20/15 Universal Robina Corporation Visayas 20.00 72.99%

15 GEEC MW Biomass Cogeneration System 05/27/17 Green Earth Enersource Corporation Mindanao 1.64 51.78%

16 Lamsan Biomass Power Plant Project 12/30/16 Lamsan Power Corporation Mindanao 13.50 90.41%

With COE

17 HPCo Bagasse Cogeneration Plant 02/04/15 Hawaiian-Philippines Company Visayas 2.00 49.66%

18 VMC Bagasse-Fired Biomass Power Plant 10/23/15 Victoria Milling Company, Inc, Visayas 2.50 59.84%

19 2MW Biomass Project 02/16/18 Central Azucarera Don Pedro, Inc. Luzon 2.00 36.58%

20 BFI Biogas Power Plant Project 05/08/18 Biotech Farms, Inc. Mindanao 3.50 71.05%

21 CADSA Cogeneration Power Plant 03/11/18 Central Azucarera De San Antonio Visayas 8.00 42.47%

Total Biomass


2020

28

Date of

Commercial

Operation for

FIT

Developer Grid

Registered

Installed

Capacity (MW)

based on DOE-

COE

Capacity

Factor


BIOMASS

With Nomination

22 VMC Bagasse-Fired Biomass Power Plant Expn 03/01/19 Victoria Milling Company, Inc, Visayas 21.45 70.97%

23 BFI Biogas Power Plant Project 12/05/18 Biotech Farms, Inc. Mindanao 2.20 93.42%

Others In the DOE List

24 HPCo Bagasse Cogeneration Plant Expn 01/01/19 Hawaiian-Philippines Company Visayas 8.00 57.53%

25 12MW Biomass Power Plant Project 09/01/19 Cleangreen Energy Corporation Luzon 10.80 87.67%

26 SCBI Cogeneration Power Plant 09/01/19 San Carlos Bioenergy, Inc. Visayas 2.50 90.41%

27 20MW Multi-Feedstock Biomass Power Plant Project 09/01/19 San Carlos BioPower, Inc. Visayas 18.00 9.00%

28 48.5MW Bagasse-Fired Cogeneration Power Plant Project 09/01/19 BISCOM, INC. Visayas 13.00 54.79%

29 25 MW Bagasse-Fired Cogeneration Power Plant Project 09/01/19 Central Azucarera de Bais Visayas 12.00 28.49%

30 6 MW Biomass Power Plant Project 09/01/19 V.S. Gripal Power Corporation Luzon 5.40 90.41%

31 6 MW Biomass Power Plant Project 09/01/19 Green Innovations for Tomorrow Corporation Luzon 5.40 90.41%


2020


29

Date of

Commercial

Operation for

FIT

Developer Grid

Registered

Installed

Capacity (MW)

based on DOE-

COE

Capacity

Factor

HYDROPOWER 172.43


1 Sabangan Hydroelectric Power Project 06/02/15 Hedcor Sabangan, Inc. Luzon 14.00 45.09%

2 Tudaya 2 Hydroelectric Power Project * 06/15/15 Hedcor Tudaya, Inc. Mindanao 7.00 70.56%

3 Irisan 1 Hydroelectric Power Plant 04/30/12 HedCor (Aboitiz) Luzon 3.80 35.41%

4 Communal-Uddiawan Hydroelectric Power Plant 06/15/15 Smith Bell Luzon 1.80 33.42%

5 Villasiga Hydroelectric Power Project 04/17/16 Sunwest Water & Electric Co. Inc. Visayas 8.00 42.32%

6 8.5 Maris Main Canal 1 HPP 11/20/17 SN Aboitiz Power Magat Luzon 8.50 56.16%

With COE

7 Manolo Fortich 1 HEP 07/02/18 Hedcor Bukidnon, Inc. Mindanao 45.94 56.62%

8 New Bataan Compostela Valley 03/06/18 Euro Hydro Power (Asia) Holdings, Inc. Mindanao 3.00 53.53%

With Nomination

9 Manolo Fortich 2 HEP 11/23/18 Hedcor Bukidnon, Inc. Mindanao 25.40 59.15%

10 Balugbog Mini-Hydro Power Plant 07/23/18 Philippine Power & Development Co. Luzon 1.10 51.69%

11 Palakpakin Mini-Hydro Power Plant 10/19/18 Philippine Power & Development Co. Luzon 1.50 61.98%

Others In the DOE List

12 Majayjay HEP 05/01/19 Majayjay Hydropower Corporation Luzon 2.19 49.10%

13 Labayat River (Upper Cascade) 10/01/19 Repower Energy Corporation Luzon 3.00 55.31%

14 Biyao 10/01/19 AV Garcia Power Systems Corporation Luzon 0.80 61.99%

15 La Trinidad HEP 06/01/19 HedCor, Inc. Luzon 19.00 34.18%

16 Calibato HEP 06/01/19 Philippine Power and Development Corporation Luzon 0.30 28.54%

17 Colasi Mini Hydro Electric Power Plant 12/01/19 Colasi Mini Hydro Electric Power Plant Corp. Luzon 4.00 34.99%

18 Timbaban 12/01/19 Oriental Energy and Power Corporation Visayas 18.00 61.58%

19 Igbulo (Bais) 12/01/19 Century Peak Energy Corporation Visayas 5.10 64.35%

Total Hydropower


2020

COE – Certificate of Endorsement (to ERC) issued by DOE; With Nomination – issued by DOE to indicate 80% electro-mechanical completion 30

Date of

Commercial

Operation for

FIT

Developer Grid

Registered

Installed

Capacity (MW)

based on DOE-

COE

Capacity

Factor

SOLAR 525.95


1 San Carlos Solar PV Power Project-Phase A 05/15/14 San Carlos Solar Energy Inc. Visayas 14.93%

2 San Carlos Solar PV Power Project Phase B 08/16/14 San Carlos Solar Energy Inc. Visayas

3 Ormoc Solar Power Project (Leyte Solar Power Project) 04/04/15 Phil. Solar Farm-Leyte, Inc. Visayas 30.00 14.73%

4 Pampanga Solar Power Project 02/05/15 Raslag Corporation Luzon 10.00 15.78%

5 4.1 MW Burgos Solar Power Project 03/05/15 Energy Development Corporation Luzon 4.10 17.13%

6 SM North Edsa Solar Power Project 04/07/15 Solar Philippines Commercial Roof top Proj. Inc. Luzon 1.50 12.65%

7 Pampanga Solar Power Project (Phase 2) 12/23/15 Raslag Corporation Luzon 13.14 16.42%

8 Hermosa Solar Power Project 02/12/16 YH GREEN Energy Incorporated Luzon 14.51 15.86%

9 Tarlac Solar Power Project 02/10/16 PetroSolar Corporation Luzon 50.07 16.12%

10 Cabanatuan Solar Power Project 03/11/16 First Cabanatuan Renewable Ventures Inc. Luzon 10.26 17.33%

11 Burgos Solar Power Project (Phase 2) 01/19/16 Energy Development Corporation Luzon 2.66 17.06%

12 Calatagan Solar Power Project 03/11/16 Solar Philippines Calatagan Corporation Luzon 63.30 15.57%

13 Curimao Solar Power Project 02/29/16 Mirae Asia Energy Corporation Luzon 20.00 18.10%

14 Valenzuela Solar Power Project 03/08/16 Valenzuela Solar Energy Inc. (VALSOL) Luzon 8.50 14.71%

15 Lian Solar Power Project 03/08/16 Absolut Distillers, Inc. (ADI) Luzon 2.04 14.16%

16 Clark Solar Power Poject 03/12/16 Enfinity Philippines Renewable Resources, Inc. Luzon 22.33 14.79%

17 Palauig Solar PP 03/13/16 Solar Powered Agri-Rural Communities Corp. (SPARC) Luzon 5.02 17.03%

18 Bulacan III Solar Power Project 03/14/16 Bulacan Solar Energy Corp. (BSEC) Luzon 15.00 15.63%

19 San Carlos Solar PV Power Project Phase I-C and I D 09/06/15 San Carlos Solar Energy Inc. Visayas 23.00 16.12%

20 Bais Solar Power Project 03/11/16 Monte Solar Energy Inc. (Montesol) Visayas 18.00 15.60%

21 Cadiz Solar Power Project 03/14/16 Helios Solar Energy Corporation Visayas 132.50 16.56%

22 Centrala Solar Power Project 10/25/16 NV Vogt Philippines Solar Energy One, Inc. Mindanao 6.23 14.97%

23 Kibawe Solar Power Project 03/13/16 Asian Green Energy Corporation MIndanao 10.49 16.72%

With COE

24 Cavite Economic Zone Solar Power Project 03/15/15 Majestics Energy Corporation Luzon 41.30 16.56%

22.00


2020

31

Date of

Commercial

Operation for

FIT

Developer Grid

Registered

Installed

Capacity (MW)

based on DOE-

COE

Capacity

Factor

WIND 426.90


1 Bangui Wind Power Project (Phase 3) 10/10/14 Northwind Power Development Corporation Luzon 18.90 28.95%

2 Burgos Wind Power Project (Phase 1 & 2) 11/11/14 EDC Burgos Wind Power Corporation Luzon 150.00 27.45%

3 Caparispisan Wind Energy Project 11/11/14 Northern Luzon Energy Renewable Energy Corporation Luzon 81.00 34.10%

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 27.78%

6 Bangui Wind Power Project (Phase 1 & 2) 06/20/15 Northwind Power Development Corporation Luzon 33.00 27.52%

7 Nabas Wind Energy Project 06/10/15 Petro Wind Energy, Inc. Visayas 36.00 33.07%

FORECAST ANNUAL GENERATION, MWH

Based on the Line-up of RE Plants Considered2012-2015, 2016, 2017, 2018 and 2019: combination of actual and estimated data

32

Based on timing of Generation

Based on timing of Billing

Technology 2012-2015 2016 2017 2018 2019 2020 2021 TOTAL

Biomass 278,416 533,625 671,624 809,154 1,132,934 1,465,170 1,472,261 6,363,184

Hydropower 88,367 98,043 149,094 323,592 611,676 797,803 794,670 2,863,245

Solar 155,064 634,561 724,823 753,196 732,306 749,070 747,231 4,496,251

Wind 776,988 952,836 1,074,849 1,135,082 936,552 1,086,589 1,085,905 7,048,800

Total 1,298,835 2,219,065 2,620,390 3,021,023 3,413,468 4,098,632 4,100,067 20,771,479

2015 2016 2017 2018 2019 2020 2021-2023 TOTAL

2014-2015 868,636 232,631 81,213 34,118 64,788 17,450 - 1,298,835

2016 - 1,780,439 316,043 38,441 8,667 60,341 15,134 2,219,065

2017 - - 2,420,259 50,140 47,934 19,410 82,647 2,620,390

2018 - - - 2,709,943 193,130 40,738 77,212 3,021,023

2019 - - - - 3,367,128 21,661 24,679 3,413,468

2020 - - - - - 4,098,632 - 4,098,632

2021 - - - - - - 4,100,067 4,100,067

Billed (kWh) 868,636 2,013,070 2,817,514 2,832,642 3,681,647 4,258,232 4,299,739 20,771,479

Year BilledYear

Generation

ADJUSTED FIT RATE*, P/kWh

33

* - Based on TransCo’s understanding of the adjustment formula given in the FIT Rules and pending ERC decision on

FIT Rate 2 for Biomass and Hydro

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

𝐴𝑑𝑗𝑢𝑠𝑡𝑚𝑒𝑛𝑡 = 𝑧 𝑥𝑅𝑃𝐶𝑃𝐼𝑛𝑅𝑃𝐶𝑃𝐼𝑜

+ 𝑦 𝑥𝐹𝐸𝐴𝑛

𝐹𝐸𝐴𝑜Where:

Z= percentage share of local capitaly= percentage share of foreign capital

FORMULA:

ASSUMPTIONS:

2014-2015 2016 2017 2018 2019

Year 1 EntrantYear 2

Entrant

Year 3

Entrant

Year 4

Entrant

Year 5

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 6.5639

2019 7.8676 7.5303 7.2211 6.9805 6.5310

2020 8.0217 7.8676 7.4927 7.1850 6.9456

Hydro

2014-2015 5.9000

2016 6.4601 5.9000

2017 6.6217 6.4601 5.8705

2018 6.8543 6.6217 6.4278 5.8411

2019 7.1549 6.8543 6.5885 6.3957 5.8119

2020 7.2817 7.1549 6.8200 6.5556 6.3637

Solar

2014-2015 9.6800

2016 9.9067 8.6900

2017 10.2550 8.8935

2018 10.6747 9.2062

2019 11.1660 9.5830

2020 11.4127 10.0240

Wind

2014-2015 8.5300

2016 8.9006 7.4000

2017 9.1869 7.7215

2018 9.5474 7.9699

2019 9.9808 8.2826

2020 10.1887 8.6586

For Bangui 1 & 2

2014-2015 5.9600

2016 6.2189

2017 6.4190

2018 6.6709

2019 6.9737

2020 7.1189

Technology

FORECAST COST RECOVERY RATE

(WESM), P/kWh

34

Month Luzon Visayas Month Luzon Visayas

1 Apr-16 3.3731 3.6163 19 Oct-17 2.3584 2.3583

2 May-16 2.7249 2.8011 20 Nov-17 2.6757 2.6758

3 Jun-16 4.6854 4.7308 21 Dec-17 2.1206 2.1206

4 Jul-16 2.8412 2.8122 22 Jan-18 2.3894 2.3730

5 Aug-16 4.0517 4.0648 23 Feb-18 3.7499 3.6900

6 Sep-16 2.7709 2.7328 24 Mar-18 5.1012 5.0593

7 Oct-16 2.5067 2.0168 25 Apr-18 4.1977 4.1649

8 Nov-16 2.2716 2.4158 26 May-18 4.0954 4.1570

9 Dec-16 2.1852 1.9550 27 Jun-18 4.0769 4.0512

10 Jan-17 1.7418 1.6567 28 Jul-18 3.8041 3.7437

11 Feb-17 2.7220 1.3540 29 Aug-18 2.6611 2.9829

12 Mar-17 2.6323 2.6323 30 Sep-18 2.9445 3.0830

13 Apr-17 2.4841 2.4841 31 Oct-18 3.8216 3.8077

14 May-17 2.0985 2.0985 32 Nov-18 3.3218 3.3355

15 Jun-17 2.7619 2.7619 33 Dec-18 3.1908 3.1635

16 Jul-17 2.1205 2.7889 34 Jan-19 3.6941 4.8142

17 Aug-17 2.2060 2.1282 35 Feb-19 2.7741 4.0065

18 Sep-17 2.2776 2.2776 36 Mar-19 3.1453 5.0724

Average 3.0161 3.1108

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 Guidelines35

Host DU

Weighted Average

Generation Cost,

PhP/kWh

Data Source

SUKELCO 5.0283 FIT-All Fund ACRR Payment of SUKELCO

COTABATO LIGHT 4.2082 ACRR Rate from Host DU

SOCOTECO I 4.5957 FIT-All Fund ACRR Payment of SOCOTECO I

DASURECO 5.2995 FIT-All Fund ACRR Payment of DASURECO

ZANECO 3.6786 ACRR Rate from Host DU

ZAMSURECO 1 5.0386 ACRR Rate from Host DU

ZAMSURECO 2 5.0998 ACRR Rate from Host DU

MOELCI 1 5.1267 ACRR Rate from Host DU

SIARELCO 2.4975 ACRR Rate from Host DU

BUSECO 5.7128 ACRR Rate from Host DU

SURSECO 1 4.8747 ACRR Rate from Host DU

SOCOTECO 2 6.0602 FIT-All Fund ACRR Payment of SOCOTECO II

DLPC 4.7955 ACRR Rate from Host DU

DANECO 5.7521 2018 Actual CRR Rate for Mindanao

FIBECO 6.3134 FIT-All Fund ACRR Payment of FIBECO

FIT DIFFERENTIAL




REVENUE( Forecast Annual RE Generation x

CRR Rate


FIT DIFFERENTIAL (OVER)/UNDER RECOVERY, PHP

36

2015 2016 2017 2018 2019

actual actual actual actual estimate

A. FD Claim for the Year

FD claim, beg - 1,809,658,442.81 4,428,764,887.26 6,123,107,614.35 122,740,061.65 *

Add: FD claimfor the year 4,293,526,898.81 10,151,661,662.08 13,490,210,933.44 11,827,019,482.61 14,198,813,403.18

Total Funds Claim' 4,293,526,898.81 11,961,320,104.89 17,918,975,820.70 17,950,127,096.96 14,321,553,464.83

B. FD Funds Available

FD Funds, beg - - - - -

FD Funds for the year 2,483,868,456.00 7,532,555,217.63 11,795,868,206.35 17,827,387,035.31 17,839,765,165.81

Total Funds Available 2,483,868,456.00 7,532,555,217.63 11,795,868,206.35 17,827,387,035.31 17,839,765,165.81

C. FD Under (Over) Recovery) (A-B) 1,809,658,442.81 4,428,764,887.26 6,123,107,614.35 122,740,061.65 (3,518,211,700.98)

*actual P/kWh (0.0382)

FIT DIFFERENTIAL




REVENUE( Forecast Annual RE

Generation x CRR Rate


FIT DIFFERENTIAL, PHP

37

Particulars Amount PhP/kWh

2020 FIT Differential (2020 Gen) 20,526,899,762.34 0.2229

2020 FIT Differential (2019 Gen) 150,255,855.88 0.0016




2020 FIT Differential (2012-2015 Gen) 114,881,956.20 0.0012

2019 (Over) Under Recovery (3,518,211,700.98) -0.0382

Total FIT Differential 17,783,653,208.83 0.1931

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

38

2021 FORECAST ANNUAL PAYOUT, PHP

39

Particulars Amount

Forecast Cost Recovery Revenue 13,883,596,085

FIT Differential 21,053,165,600

Administration Allowance 12,080,646

Disbursement Allowance 1,755,420

Forecast Annual Payout 34,950,597,751

*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*

40

CRRWESM

FD,AA, DA, CRRNon-

WESM

Annual Payout 10,686,359,462 23,746,817,713

Divided By: Total Annual Payout 34,433,177,175 34,433,177,175

Ratio 31.04% 68.96%

X Factor Rate 1.52% 13.98%

Weighted Factor Rate 0.47% 9.64%

Effective Factor Rate 10.1156%

WCA t+1


t+2

Factor RateWCA Ending

Balancet

WCA ENDING BALANCE, PHP

41

2019 WCA, beg -

WCA Allocation for the year 798,322,190.62

Total 798,322,190.62

Less: 2019 Estimated Disbursement c/o WCA

Transfer to CRR 180,519,515.23

Transfer to FD (Actual as of Jul 5, 2019) 167,856,386.12

Transfer to DA 281,728.34

Estimated Payment of Interest 97,026,072.23

Total 445,683,701.93

2019 WCA, ending, Php 352,638,488.70

2019 WCA, ending, Php/kWh 0.0038

WCA t+1


t+2

Factor RateWCA Ending

Balancet

WORKING CAPITAL ALLOWANCE (WCA), PHP

42

Particulars 2020 2021

Forecast Annual Payout, Php 34,950,597,751

X Factor Rate 10.1156%

Equals: Portion of Annual Payout, Php 3,535,463,587

Less: WCA Ending Balance (Year n) 352,638,488.70

Working Capital Allowance, Php 3,182,825,098.17

Working Capital Allowance, P/kWh 0.0346

Particulars 2020Personal Services 7,914,568.95

Maintenance & Other Operating Expenses 3,038,787.06

CAPEX 672,666.67

Total Administration Allowance, Php 11,626,022.68

Administration Allowance, P/kWh 0.0001

ADMINISTRATION ALLOWANCE (AA), PHP

43

Notes:1. Assumes a permanent FIT-All Division comprising of 8

personnel2. Based on TransCo Board approved COB

Fixed Trustee Fee (60k/Month) 720,000.00

BSP Supervision Fee

(1/28 of 1% of the Average

Monthly Fund Balance)

972,419.74

RTGS Fee 63,000.00

Estimated Trustee Fee 1,755,419.74

Disbursement Allowance 0.00002

DISBURSEMENT ALLOWANCE, PHP

44

AAFD WCAFIT ALL RATE, P/kWh DA FNS

SUMMARY OF

2020 FIT ALL RATE APPLICATION, P/kWh

45

Assumptions:

1. Adjusted FIT Rates

2. CRR Rate

Actual Generation and FD for those with Billings as of May 2019Billing

Monthly LWAP (for those 2012-Mar 2019 without Actual FD)

36 Monthly Average LWAP for April 2019 to 2020

3. Latest DOE Line-up

COMPONENTS Amount (Php) Rate (P/kWh) Share

FD 17,783,653,209 0.1931 84.77%

2020 FIT Differential-2020 Gen 20,526,899,762 0.2229 97.84%

2020 FIT Differential-2019 Gen 150,255,856 0.0016 0.72%




2020 FIT Differential-2014-2015 Gen 114,881,956 0.0012 0.55%

2019 Under (Over) Recovery (3,518,211,701) (0.0382) -16.77%

WCA 3,182,825,098 0.0346 15.17%

AA 11,626,023 0.0001 0.06%

DA 1,755,420 0.00002 0.01%

Total 20,979,859,749

FNS, kWh 92,079,031,292

FIT-All, Php/kWh

0.2278

2020 FIT-ALL RATE BUILD-UP FROM ERC 2018 DECISION

46

2020 FIT-All

Rate Build-

Up, P/kWh

0.2226SOURCES OF INCREASE (DECREASE) Pesos Pesos/kWh

(9,917,839,728.03) (0.0240) 0.1986

5,269,397,139.03 0.0572 0.2559

FIT Differential 3,460,381,891.90 0.0376

WCA 1,809,015,247.12 0.0196

5,975,149,219.74 0.0649 0.3208

FIT Differential 5,702,453,782.48 0.0619

WCA 272,695,437.26 0.0030

1,451,452,346.35 0.0158 0.3365

WCA 1,451,452,346.35 0.0158

312,009,752.81 0.0034 0.3399

12,802,064.93 0.0001 0.3400

Administration Allowance 11,626,022.68 0.0001

AA Effect on WCA 1,176,042.26 0.0000

819,989.81 0.0000 0.3401

Disbursement Allowance 744,662.69 0.0000

DA Effect on WCA 75,327.12 0.0000

(339,400,476.66) (0.0037) 0.3364

(352,638,488.70) (0.0038) 0.3325

(9,641,319,315.33) (0.1047) 0.2278

NET INCREASE (DECREASE), P/kWh (6,876,929,007.35) 0.0052

2018 FIT-All Rate Decision

Increase from 2018 ERC Approved

FIT-All Rate

7. Change in Disbursement Allowance

8. Provision for Interest Payment

10. Change in FIT Differential Over/Underrecoveries

1. Change In Energy Sales (Denominator)

2. Change in Energy Generation

3. Change in FIT Rate/ACRR

4. Change in Factor Rate

5. Increase in Past months Past Due charged to CY

6. Inclusion of Administration Allowance

9. Effect of 2019 WCA, ending

Increase/

(Decrease)Total

Increase/

(Decrease)Total

Increase/

(Decrease)Total

MW 1,086 108 1,195 52 1,246 130 1,376

MWH 2,861,758 381,594 3,243,352 296,088 3,539,440 559,192 4,098,632

- - - - - -

FIT-ALL Rate, P/kWh

FD 0.1108 0.0358 0.1466 0.0178 0.1644 0.0287 0.1931

2020 FD 0.1807 0.0204 0.2011 0.0080 0.2091 0.0223 0.2313

2019 Over Recovery (0.0699) 0.0154 (0.0545) 0.0098 (0.0447) 0.0065 (0.0382)

WCA 0.0240 0.0045 0.0286 0.0024 0.0311 0.0034 0.0346

AA 0.0001 0.0000 0.0001 0.0000 0.0001 0.0000 0.0001

DA 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000

FIT-ALL Rate, P/kWh 0.1350 0.0403 0.1753 0.0202 0.1957 0.0321 0.2278

With Billings

As of July 5,

2019

With COE With Nomination DOE List

INCREMENTAL MOVEMENT OF THE 2020 FIT-ALL FOR DIFFERENT RE PLANT/PROJECT CATEGORIES

47

Assumptions:


2. CRR Rate

Actual Generation and FD for those with Billings as of May 2019Billing




Billing Month: Apr 2019Consumption: 732.74 kWhFIT-All Charge: Php 163.11% to Total Bill: 2.72% of the Total Bill

FIT-All Current Rate, Php 0.2226/kWh

Billing Month: Apr 2019Consumption: 732.74 kWhFIT-All = Php 166.92% to Total Bill = 2.78% of the Total Bill

2020 FIT-All Applied, Php 0.2278/kWhImpact of Application:

Impact for Other Energy Consumption @ FIT-All Rate of Php 0.2226/kWh

FIT-All Impact to Consumers

48

100 200 300 400

FIT-All

Charge, Php 22.78 45.56 68.34 91.12

Consumption (kWh)

ADDITIONAL FD REQUIREMENT

THAT WILL INCREASE THE 2020 FIT-ALL RATE, PHP

49

Note: The ERC has not implemented to date Section 2.10 of the FIT Rules regardingannual escalation/adjustment of FIT Rates.

FD PROVISION FOR FIT RATE ADJUSTMENT, PHPcovering 2016 to May 2019

2016 2017 2018

2019

(as of May 2019

Billing)

Total

FD @ Adjusted FIT 11,519,898,011.39 13,156,146,188.32 13,487,378,473.02 4,164,857,789.73 42,328,280,462.44

FD paid @base FIT 11,047,288,474.42 11,946,424,832.04 11,402,813,329.54 2,487,967,603.87 36,884,494,239.87

FD Adjustment 472,609,536.96 1,209,721,356.27 2,084,565,143.48 1,676,890,185.86 5,443,786,222.58

P/kWh 0.0591

PRAYER IN THE APPLICATION

50

WHEREFORE, premises considered, it is most respectfully prayedof this Honorable Commission that:

a. Pending hearing on the merits of the present Application,provisional authority to collect the FIT-All of Php/kWh0.2278 effective January 2020 billing period be issued;

b. The Collection Agents – DUs, REs, and NGCP – be directed tobill, collect and remit the FIT-All to the FIT-All Fund asprovided in the FIT-All Guidelines;

c. PEMC/IEMOP and the Host DUs be directed to remit theACRR to the FIT-All Fund as provided in the FIT-AllGuidelines;


51

d. The Factor Rate resulting from an updating of inputs in therecommended formula by the NREB under the 2014-2015 FIT-All Application (ERC Case No. 2014-109RC) be approved andapplied in the computation of the WCA and the FIT-All Rate for2020;

e. After due notice and hearing, a FIT-All Rate of Php/kWh 0.2278for 2020 be approved;

e.1 OR IN THE ALTERNATIVE, after due notice and hearing, aFIT-All Rate for 2020 based on new evidence presented atthe trial but not available to the Applicant at the time ofthe filing of the present application be approved; and


52

f. TransCo be exempt from payment ofpermit/supervision fee, if any.

Other reliefs as may be just and equitable under thepremises are likewise most respectfully prayed for.

III. Updated Calculation

53

RE PLANT STATUS

54

As of September 5, 2019

No. MW No. MW No. MW No. MW No. MW

SOLAR 23 484.65 1 41.30 24 525.95

WIND 7 426.90 7 426.90

BIOMASS 16 131.63 5 18.00 2 23.65 23 173.28

HYDRO 6 43.10 1 45.94 1 3.00 3 28.00 11 120.04

Total 52 1,086.28 1 45.94 7 62.30 5 51.65 65 1,246.17

Plant TypeTotal

With Billings as

of Sept 5 PD

Effective

but not yet

Billing

With COE With

Nomination

UPDATED FIT ALL RATE AS OF SEPTEMBER 5, 2019(updated data as of July 2019 Billing Period)

Assumptions

55

Parameters As Filed Update

A. RE Plants Included

No Change in line-up. Just an

update on category, i.e., from

REs with COE to REs with

Effective REPA but Not Yet

Billing; change in timing of

billingB. Billing Period Actual up to May 2019 Actual up to July 2019

C. Energy Generation, MWH

2019 3,413,468 3,385,301

2020 4,098,632 4,098,632

D. Collection DataActual FIT-All Collection until

June 2019

Actual FIT-All Collection until

August 2019

118.9583 119.2167

12 months ending May 2019 12 months ending June 2019

P5.8605/kWh P5.7743/kWh

12 months ending May 2019 12 months ending July 2019

G. FD (Over)/Under

Recovery, Php(3,518,211,701) (5,085,983,769)

H. Factor Rate 10.1156% 10.1173%

E. Average CPI

F. ACRR of Host DUs already

billing


FD 16,480,156,026 0.1790 84.19%








WCA 3,080,372,464 0.0335 15.74%

AA 11,626,023 0.0001 0.06%

DA 2,297,176 0.00002 0.01%

Total 19,574,451,688

FNS, kWh 92,079,031,292

FIT-All, Php/kWh

0.2126

As Filed

56

UPDATED FIT ALL RATE AS OF SEPTEMBER 5, 2019(updated data as of July 2019 Billing Period)


FD 17,783,653,209 0.1931 84.77%








WCA 3,182,825,098 0.0346 15.17%

AA 11,626,023 0.0001 0.06%

DA 1,755,420 0.00002 0.01%

Total 20,979,859,749

FNS, kWh 92,079,031,292

FIT-All, Php/kWh

0.2278

UPDATED FIT ALL RATE AS OF SEPTEMBER 5, 2019 (updated data as of July 2019 Billing Month)

Using full line-up of RE Plants from the DOE as of September 5, 2019

57

Assumptions:


2. CRR Rate

Actual Generation and FD for those with Billings as of July 2019 Billing

Monthly LWAP (for those 2012-March 2019 without Actual FD)

36 Monthly Average LWAP for August 2019 to 2020


FD 16,480,156,026 0.1790 84.19%








WCA 3,080,372,464 0.0335 15.74%

AA 11,626,023 0.0001 0.06%

DA 2,297,176 0.00002 0.01%

Total 19,574,451,688

FNS, kWh 92,079,031,292

FIT-All, Php/kWh

0.2126

Increase/

(Decrease)Total

Increase/

(Decrease)Total

Increase/

(Decrease)Total

Increase/

(Decrease)Total

MW 1,086 46 1,132 62 1,195 52 1,246 130 1,376

MWH 2,861,758 227,851 3,089,609 153,743 3,243,352 296,088 3,539,440 559,192 4,098,632

- - - - - -

FIT-ALL Rate, P/kWh

FD 0.0989 0.0108 0.1098 0.0227 0.1325 0.0178 0.1503 0.0287 0.1790

2020 FD 0.1810 0.0059 0.1870 0.0164 0.2034 0.0080 0.2119 0.0223 0.2342

2019 Over Recovery (0.0821) 0.0049 (0.0772) 0.0063 (0.0709) 0.0098 (0.0616) 0.0064 (0.0552)

WCA 0.0230 0.0023 0.0253 0.0022 0.0275 0.0024 0.0300 0.0034 0.0335

AA 0.0001 0.0000 0.0001 0.0000 0.0001 0.0000 0.0001 0.0000 0.0001

DA 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000

FIT-ALL Rate, P/kWh 0.1220 0.0131 0.1352 0.0249 0.1601 0.0202 0.1804 0.0321 0.2126

With Billings

As of Sept 5,

2019

With COE With Nomination DOE ListUp to With Effective REPA

INCREMENTAL MOVEMENT OF THE 2020 FIT-ALL FOR DIFFERENT RE PLANT/PROJECT CATEGORIES

58

Assumptions:


2. CRR Rate

Actual Generation and FD for those with Billings as of July 2019Billing




END OF PRESENTATIONThank you.

Telephone No.: (02) 7902-1500 loc. 86230/86231/1579

Email Address: [email protected]

[email protected]

Website: http://transco.ph/feed-in-tariff

2020 feed-in tariff allowance rate application erc … · mechanics and guidelines 1. fit rules...

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