THE Energy Regulatory Commission (ERC) is soliciting comments from industry stakeholders on the proposed Feed-in-Tariff (FIT) fourth round for run-of-river hydro (RORH) power projects.
‘There is no final rate yet. We are still conducting a public consultation,’ ERC chairperson Francis Saturnino Juan commented when asked about the proposed P6.3846 per kilowatt hour (kWh) FIT-4 for 100 megawatts (MW) of RORH power projects scheduled for delivery in 2028.
A group of hydro power developers is appealing to the commission to issue ‘reasonable rates,’ higher than the proposed rate ‘for us to be encouraged to develop more.’
‘The reality is we’re not just producing water or power, but we are also taking care of the watershed and the infrastructure that we contribute to the countryside,’ said Philhydro Association Inc. president Gertrude Roque on the sidelines of the 2025 Philippine Hydro Summit and Exhibition.
The group proposed for the ERC to adopt the actual average capacity factor in the computation of the FIT4 as this best represents the true conditions and challenges of operating RORH power plant.
‘Considering that a number of RORH plants are now commercially operational, there is ample actual and historical data to use that are verifiable by regulators. RORH plants are not only Influenced by the efficiency of turbines but also the availability of water flowing in the river, which are all reflected in the actual and historical data of operational plants considering the site-specific nature of hydropower development and the nature of required works, extensive exposure to geological conditions, access problems, and flooding, which affects the actual,’ Philhydro said.
Roque said industry stakeholders must acknowledge the ‘very real challenges’ in the development of RORH power. These are complex permitting, lagging infrastructure, financing limitations, market ambiguities, and the need for genuine lifetime trust-building with communities.
For the DOE’s part, Secretary Sharon Garin acknowledged that the road to RORH development can be long and complex. ‘Yet, acknowledging these challenges is only the first step. If we are to translate our shared commitment into tangible results, we must now chart the path forward and establish concrete, measurable commitments from all sectors to accelerate development while upholding integrity throughout the process,’ the energy chief said.