Is the FIT scheme in the Philippines the same as in other countries?

Not necessarily. The similarities are in the differentiation of FITs by technology: for example, the FITs for solar and wind energy are generally higher than that for hydro producers.

However, the Philippine FITs do not differentiate by plant size, and are therefore more favorable to large producers who can benefit from economies of scale. By contrast, the FIT schemes in most other countries, such as Germany and Malaysia, particularly favor small end-users because their FITs are higher than for large producers. This differentiation would tend to encourage small producers. A leading environmental lobby, the Audobon Society, believes that local ownership of small plants is more conducive to grid stability even as it precludes large corporations from receiving excessive profits.

For example, in Malaysia, with respect to solar power, the 2011 FIT for small plants is equivalent to about P16/Kwh, but only P12/Kwh for large plants.  In Taiwan, the 2011 FIT for small solar plants is approximately P14/Kwh, also higher than the equivalent of P10/Kwh for large plants. 

The solar feed-in tariffs for Malaysia and Taiwan are generally lower than the P17.95/kwhr recently proposed by the National Renewable Energy Board (NREB)

A Philippine government official has admitted that a justification for the proposed higher single-value FITs is that of ensuring a favorable return on investment of 16% per annum for new RE installations. This approach is opposed by consumer groups as an unfair concession to big investors. 


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