The Benguet Electric Cooperative (Beneco) has started the commercial operation of its 3.4 megawatts (MW) hydro-electric power plant in Buguias, the first electric generation project of the distribution utility.
“Effective November 25, 2024, Beneco started to fully operate commercially with the issuance of the Certificate of Compliance (COC) for the mini hydro power plant of Beneco in Man-asok, Buguias (Benguet),” general manager Melchor Licoben said Friday.
He said Beneco has hurdled the last major regulatory requirement for operating a renewable energy project.
“Man-asok, having been awarded its COC, is a big leap in attaining Beneco’s vision in going renewable. This final approval from the DOE (Department of Energy) means that the electricity produced by the Man-asok mini-hydro (power plant) will be guaranteed to be paid by the government’s Feed in Tariff Allocation (FIT-ALL) rate,” he said.
The FIT-ALL rate assures electric cooperatives that power generated from renewable energy will be paid once the power is brought into the grid, the manager explained.
Licoben explained that getting the COC “means that Beneco can develop bigger renewable power generation projects that can provide cheaper power rates for our member-consumer-owners.”
Artemio Bacoco, Beneco’s power generation and operations department manager, said the FIT rate last October is PHP5.98 per kilowatt hour (kWh), with the possibility to increase to PHP6/kWh.
“This is significantly higher compared to the buying price at the Wholesale Electricity Spot Market (WESM)," he said, referring to the country’s spot market for power supply.
Bacoco said the WESM buying rate for Man-asok for its September to October 2024 generated power was PHP3.8/kWh, but this increased to PHP4.219/kWh for October to November.
Bacoco said that with the COC, Beneco will be entitled to tax exemptions on carbon credits, special tax rates on equipment and machineries, income tax holidays for seven years under the Board of Investments, and duty-free importation of renewable energy machineries, equipment and materials for 10 years.
PHOTO FROM BENECO WEBSITE
