The Energy Department granted a certificate of commerciality to Philippine Solar Farm-Leyte Inc., allowing it to proceed with the construction of a 30-megawatt solar power project in Ormoc City, Leyte.
Renewable Energy Management Bureau director Mario Marasigan said the agency issued a certificate confirming the declaration of commerciality of the Leyte solar project to be built by Philippine Solar Farm-Leyte, which is led by Korean investors.
The certificate issued to Philippine Solar Farm-Leyte is the first to be granted to a solar project in the Philippines, Marasigan said.
“DoE recently issued a certificate confirming the declaration of commerciality to a 30-MW solar project,” Marasigan said.
The declaration of commerciality refers to a written declaration from the developer, confirmed by the Energy Secretary, stating that the project was commercially feasible.
The department evaluates the declaration and completes the processing within 30 days from receipt of submission.
It then issues the certificate of confirmation of commerciality as a sign of approval of the declaration, which serves as notice to proceed to the construction stage.
A final approval by the Energy Department will allow Philippine Solar Farm to avail of the P9.68 per kilowatthour feed-in tariff for solar projects.
“Based on the submission of the company to the DoE, by January 2015, the project will be in commercial operations already,” Marasigan said.
Philippine Solar Farm plans to construct the plant on a 44-hectare area in Barangay Dolores in Ormoc that will cost P2.9 billion.
The company is 40-percent owned by DS Steel Co. Ltd. of Korea, which is engaged in the manufacture and sale of stainless steel pipe.
Philippine Solar Farm is keen on tapping funding from Korea Development Bank Daewoo Security Co.
Local investors own the remaining 60 percent of the solar project.
Meanwhile, Marasigan said the department was also set to confirm the declaration of commerciality of another solar company, which owns a 30-MW solar farm in Luzon.
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