The Benguet Electric Cooperative (BENECO) has begun the full commercial operation of its 3.4 megawatt (MW) hydroelectric power plant in Buguias town, according to the cooperative on Friday, Dec. 20.
According to BENECO general manager Melchor Licoben, the plant was ready for full operations at the tail end of November, and is now active in full capacity after the issuance of a certificate of compliance or COC for the plant.
The plant in Buguias is the first electric generation project of BENECO, and is planned to be the first of many.
With the Buguias plant having received a COC, the output of the plant is guaranteed to be paid by the government’s feed-in tariff allocation (FIT-All) rate.
FIT-All ensures that the renewable energy output will be paid once linked to the grid, regardless of the actual consumption.
The FIT-All rate as of October was P5.98 per kilowatt-hour (kWh), almost P2 full pesos per kWh higher than the wholesale electricity spot market (WESM) buying price, giving the cooperative better value for its power output and potentially lowering consumer costs.
With the provision of COC for the Buguias plant, BENECO is eligible to receive tax exemptions and duty-free imports of renewable energy machinery, equipment, and materials.
Licoben said that the success of the Buguias plant will also be a stepping stone for the establishment of more local renewable energy projects in the province.
