Benguet Electric Cooperative (Beneco) announced on December 20, 2024, that it has begun the commercial sale of electricity generated by its 3.4 megawatt hydroelectric facility located in Man-asok, Buguias, Benguet. This marks the cooperative’s inaugural venture into power generation, showcasing its potential to expand into larger projects and meet its own energy needs in the future.
The commercial operations commenced on November 25, 2024, following the receipt of the Certificate of Compliance (COC) for the mini hydro power plant. Melchor Licoben, the general manager of Beneco, highlighted that this COC was the final regulatory hurdle needed to operate the renewable energy project. He emphasized that the approval from the Department of Energy (DOE) ensures that the power generated at Man-asok will be compensated at the government’s Feed-in Tariff Allocation (FIT-ALL) rate.
Licoben further explained that the FIT-ALL rate guarantees payment for renewable energy fed into the grid, which is crucial for the cooperative. He also noted that the COC enables Beneco to pursue larger renewable energy projects, potentially offering lower electricity rates to its member-consumer-owners.
Artemio Bacoco, manager of Beneco’s power generation and operations department, reported that the FIT rate in October was PHP5.98 per kilowatt-hour (kWh), with a potential increase to PHP6/kWh. He compared this favorably to the Wholesale Electricity Spot Market (WESM) rates, which were PHP3.8/kWh for September to October 2024 and rose to PHP4.219/kWh for October to November.
Bacoco also mentioned that the COC entitles Beneco to various benefits, including tax exemptions on carbon credits, special tax rates on equipment and machinery, a seven-year income tax holiday under the Board of Investments, and duty-free importation of renewable energy equipment and materials for ten years.