Region: East Asia and Pacific (EAP)
Country: Philippines
Sector: Energy and Power
Topic: Tools
Keywords: PPPs by Sector *, Energy and Power PPPs **, Philippines, Standard agreements
Document(s):
Document Summary:
The Energy Regulatory Commission (“ERC”) has published standard documentation for the offtake of electricity from Renewable Energy (“RE”) Plants eligible for the Philippine Feed-in Tariff (“FiT”) system. The principal agreement is the Renewable Energy Payment Agreement (“REPA”) under which TransCo (the FiT Allowance Administrator) pays the owner of the eligible RE Plant (RE Developer) the FiT rate for the plant’s metered energy output. The economic function of the REPA is broadly analogous to a synthetic PPA with private hedge counterparties, which are used in more established electricity markets, to provide revenue stability for the project (see Synthetic PPAs). Separately, where a RE Plant does not operate in the Philippine Wholesale Electricity Spot Market (“WESM”), the RE Developer and local host distribution utility (“DU”) must enter into a Renewable Energy Supply Agreement (“RESA”) for the offtake of electricity generated by the plant.
Document Details:
Key features of the sample PPAs published by ERC:
RE Developer Defaults – if:
TransCo (under the REPA) and the local host distribution utility (under the RESA) become entitled to terminate the REPA and RESA, respectively.
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