The Department of Energy (DoE) has decided to exclude the Run-of-River (ROR) Hydro from the upcoming Third Round of the Green Energy Auction (GEA-3), scheduled for next month, to focus on non-feed-in-tariff (FIT) renewable energy technologies. 

In a notice issued on Sunday night, the DoE explained that this decision, which aims to better meet the country’s energy targets, was made due to the ongoing under-subscribed feed-in-tariff system for RoR Hydro. 

Consequently, the Energy Regulatory Commission (ERC) will not release the Green Energy Auction Reserve (GEAR) Price for RoR Hydro under GEA-3.

Instead, the auction will include Impounding Hydro, Pumped-Storage Hydro (PSH), and Geothermal Energy. These technologies are expected to advance the DoE’s renewable energy goals, with installation capacities planned over the next decade. 

The DoE emphasized that the administration of GEA-3, with the majority of the capacity coming from Pumped-Storage Hydro, will significantly enhance the grid’s stability and reliability while supporting a more sustainable and cleaner energy future.

ERC chief cites FIT

At a press conference on Monday, ERC chairperson and CEO Monalisa Dimalanta also confirmed the exclusion of ROR Hydro from the bidding process.

“We deferred resolving this as you recall because we had that issue that we had to refer to the DoE that we were asking if it’s possible to have parallel programs because RoR has FIT. Then DoE decided to retain it under the FIT system so we will now sit down and discuss it as a revision to the FIT rate,” Dimalanta explained.

The updated targets include 2,000 megawatts of Pumped-Storage Hydro in Luzon, 250 MW in the Visayas, 300 MW of Impounding Hydro across Luzon, Visayas and Mindanao, and 100 MW of Geothermal energy.

Along with the changes in the involved technology, the DoE also slightly revised the auction timeline.