Investor interest in the renewable energy (RE) sector surged in the third round of the government’s Green Energy Auction (GEA-3), with the total offered capacity soaring to 7,530.887 megawatts (MW), far exceeding the 4,650 MW installation target. 

The Department of Energy (DoE) said on Wednesday that the strong response highlights growing confidence in the country’s clean energy transition and commitment to energy security.

Of the 14 projects submitted, pumped-storage hydropower notably dominated with a total of 6,950 MW across Luzon and Visayas, while impounding hydropower accounted for 550 MW and geothermal for 30.887 MW. 

“Pumped Storage Hydropower (PSH) can perform as an energy storage facility that can complement generation from variable renewable energy (VRE) sources such as solar and wind but at the same time can inject power into the grid for supply augmentation and balance the intermittency of VREs in the power system towards achieving energy security,” the DoE said.  

2 hydro plants remain

The country currently has only two operational PSH plants — Kalayaan 1 and 2 in Laguna — with a combined capacity of over 300 MW.  

The winning bidders, determined based on price offers ranked from lowest to highest, will be announced once the Energy Regulatory Commission (ERC) completes its review. 

The DoE thus emphasized its commitment to a competitive and transparent RE auction process.  

“The GEA underscores the Department’s commitment to creating a fair and competitive environment for RE development, ensuring transparency, innovation and deployment of cost-effective RE technologies across the country,” the DoE said.  

With the auction progressing, the government moves closer to its goal of increasing RE’s share in the power mix to 35 percent by 2030.