2016 ANNUAL REPORT

TYPHOON RESILIENCE

Apart from stringent standards on safety, the company focused on improving the resilience of its wind and solar plants. In August 2016, typhoon-proofing activities were done on 23 transmission line towers, as well as on its substation.
Aside from the aforementioned preventive measures, the company ordered three (3) units of emergency restoration system (ERS) towers, which arrived on site last August 26, 2016. With the ERS towers, EDC will be able to quickly respond to electrical transmission interruptions should the current transmission towers suffer damage and need an immediate replacement.

NEW DEVELOPMENTS

The Energy Regulatory Commission (ERC) has yet to respond to the 2017 Feed-in Tariff Allowance (FiT-All) petition that was filed by the National Transmission Corporation (Transco) last December 1, 2016. Transco filed escalated FiT rates of PHP9.19/kWh, PHP10.26/kWh, and PHP8.89/kWh for Wind, Solar 1, and Solar 2, respectively.
In 2016, the FiT-All rates were raised to PHP0.12/kWh from PHP0.04/kWh. Moreover, the FiT-All rate was petitioned to be increased to PHP0.22/kWh in 2017 from PHP0.12/kWh, sending a signal that the government—and the consumers— are serious about utilizing clean and renewable energy (RE).
Encouraged by continued demand for RE on the commercial front, EDC and First Gen Energy Solutions, Inc. (FGES) partnered with Gaisano Capital, one of the largest retail companies in the Philippines, in 2016 to provide low carbon and environmentfriendly energy projects. A PPA was signed with Gaisano Capital to install solar panels on the rooftop of the Gaisano Capital Iloilo in La Paz, Iloilo City.
In 2016, EDC constructed and installed 3,400 solar panels to provide Gaisano Capital Iloilo with 1.03 MW of power starting January 11, 2017. The solar rooftop installation has the ability to provide up to 50.0 percent of the mall’s daytime load through clean solar energy, which enables Gaisano Capital to avoid emitting 750 metric tons of carbon dioxide annually. To date, this is the largest solar facility of its kind in the province.

FEED-IN TARIFF

A Feed-in Tariff (FiT) is a Renewable Energy policy that offers 20-year guaranteed fixed rate payments given to eligible producers of renewable energy (wind, solar, run-of-river, and biomass) for every kilowatt-hour of energy they supply to the grid. The approved FiT rates depend on the technology type.

The Philippine government adopted a FiT scheme provided for under the RE Law of 2008 to promote the use and production of renewable energy in the country.