The Philippine Solar and Storage Energy Alliance seeks a higher reserve price for floating solar at P7.3661 per kilowatt-hour, compared to the P4.7565-per-kWh interim rate proposed by the Energy Regulatory Commission.
It submitted the position paper to the ERC on the Green Energy Auction Program-2 reserve price for floating solar.
The GEA reserve prices are the maximum price offers in peso per kWh that will be used as the ceiling in the auction.
“That’s a good step, but I think they have to understand that in order to open the doors to make floating solar commercial, they have to give high tariffs so that the first pioneer who is going to absorb all the different problems in the first set can be compensated,” PSSEA chairperson Tetchi Capellan said.
She said the ERC should consider that floating solar is different from ground-mounted solar especially in terms of cost.
Capellan said first-mover developers are taking the risk, but once the technology matures, the rates will eventually drop.
She said the ERC computation should be data-driven. The PSSEA is asking the regulator to come out with the data used for their rate computation.
“Unlike in ground-mounted solar panels, solar PV on water incurs additional costs in construction and operations, including but not limited to, installation of floaters, anchoring and mooring of the system. These systems are the unique features of the solar PV on water and are indispensable in keeping the solar PV on water in its place,” the PSSEA said.
The group said floating solar incurs at least 20 percent higher project cost than ground-mounted solar due to different mounting solutions.
It said costs should also include logistics of bulky floats which need barges and other water transportation en route to the site.
The PSSEA said additional costs include water-resistant cables and wires to ensure safety measures and efficient operation.
“Aa favorable decision of the PSSEA’s petition will enable this emerging technology to participate in GEAP and set the stage for its eventual commercialization in the country, allowing it to compete fairly in the electricity market in the future,” the group said.
