THE Power Sector Assets and Liabilities Management Corp. (PSALM) said it disbursed P455.45 million in cash incentives to renewable energy (RE) developers operating in remote areas last year.
PSALM, as the administrator of the Universal Charge for Missionary Electrification (UCME), allots a portion of the collections to the Missionary Electrification-Renewable Energy Developers’ Cash Incentive (REDCI).
Since the Energy Regulatory Commission (ERC) set the rules on availing of the incentive in 2014, PSALM said it disbursed P1.51 billion to six qualified RE developers, PSALM said in a statement on Tuesday.
Under the Renewable Energy Act of 2008, RE developers are entitled to cash generation-based incentive per kilowatt-hour (kWh) generated, equivalent to 50% of the UC for power needed to service areas, to be chargeable against the UCME.
The UC ME-REDCI is billed and collected from all electricity-end users, which are intended to incentivize RE developers serving renewable energy solutions to missionary areas and contribute to rural electrification.
As of February, the UC ME-REDCI rate increased to P0.0044 per kWh from P0.0017 per kWh approved in 2014.
At the time the rate was approved, there were only three RE developers availing of the cash incentive.
“PSALM’s disbursement of cash incentives has had a significant impact on these RE developers, helping them cover operational expenses and ensure the financial viability of their projects,” the firm said.
Citing data provided by RE developers, PSALM said that the cash incentives have benefited approximately 325,000 households across the Philippines. — Sheldeen Joy Talavera