Resolution Setting the Degressed Feed-In Tariff Rates for Run-of-River Hydro and Biomass, as Provided in Section 2.11 of the Feed-In Tariff Rules (Fit Rules)

January 24, 2017 ERC RESOLUTION NO. 01-17 RESOLUTION SETTING THE DEGRESSED FEED-IN TARIFF RATES FOR RUN-OF-RIVER HYDRO AND BIOMASS, AS PROVIDED IN SECTION 2.11 OF THE FEED-IN TARIFF RULES (FIT RULES) WHEREAS , Section 7 of Republic Act (R.A.) No. 9513, An Act Promoting the Development, Utilization and Commercialization of Renewable Energy Resources and for Other Purposes, and Section 5 of its Implementing Rules and Regulations (IRR) mandate the Energy Regulatory Commission (ERC), in consultation with the National Renewable Energy Board (NREB), to formulate and promulgate Feed-in Tariff (FIT) system rules; EcTCAD WHEREAS , in pursuance of this mandate, the ERC, on 12 July 2010, promulgated the Feed-in Tariff Rules (FIT Rules) through Resolution No. 16, series of 2010, which became effective on 12 August 2010; WHEREAS , the objective of the FIT Rules is to establish the FIT system and to regulate the method of establishing and approving the FIT and the Feed-in-Tariff Allowance (FIT-All); WHEREAS , Section 2.11 of the FIT Rules states that: " To encourage the RE producers to invest at the initial stage and hasten deployment of RE, the FITS to be established by the ERC shall be subject to degression rate which shall be determined based on NREB's recommendation. The Eligible RE Plants shall be entitled to such degressed FITs corresponding to the year when they started commercial operation. The ERC may approve a different degression rate for different technologies ." WHEREAS , on 27 July 2012, the ERC issued Resolution No. 10, series of 2012, A Resolution Approving the Feed-in Tariff (FIT) Rates, with the following details: APPROVED RATES (PhP/kWh) ERC-APPROVED DEGRESSION RATES INSTALLATION TARGET (MW) HYDRO 5.90 0.5% after year 2 from effectivity of FIT 250 BIOMASS 6.63 0.5% after year 2 from effectivity of FIT 250 WHEREAS , the Commission provisionally approved the 2014-2015 Feed-in Tariff Allowance (FIT-All) of PhP0.0406/kWh effective January 2015 billing, in a Decision dated 07 October 2014, under ERC Case No. 2014-109 RC, In the Matter of the Application for Approval of the FIT-All for Calendar Years 2014 and 2015 Pursuant to the Guidelines for the Collection of the FIT-All and Disbursement of the FIT-All Fund; SDHTEC WHEREAS , the above-mentioned Decision set the effectivity of the FIT on 1 January 2015; WHEREAS , as of 31 December 2016, the ERC issued Certificates of Compliance (COCs) for FIT Eligibility for a total capacity of 28.6976 MW and 144.804 MW for Run-of-River Hydro and Biomass, respectively; WHEREAS , based on the above, the FIT rates for Run-of-River Hydro and Biomass shall be degressed at a rate of 0.5% for the period January to December 2017, which is two (2) years from the January 2015 FIT effectivity; NOW THEREFORE , the ERC, after thorough and due deliberation, hereby RESOLVES , as it is hereby RESOLVED , to APPROVE and ADOPT , the following degressed FIT Rates for January-December 2017 for RE Plants with Commercial Operations Dates within the said period: Technology Degressed FIT Rates (in PhP/kWh) Run-of-River Hydro 5.8705 Biomass 6.5969 This Resolution shall take effect IMMEDIATELY upon its publication in a newspaper of general circulation in the country. Pasig City, January 24, 2017. (SGD.) JOSE VICENTE B. SALAZAR Chairman and CEO (SGD.) ALFREDO J. NON Commissioner (SGD.) GLORIA VICTORIA C. YAP-TARUC Commissioner (SGD.) JOSEFINA PATRICIA A. MAGPALE-ASIRIT Commissioner (SGD.) GERONIMO D. STA. ANA Commissioner