ERC pegs floating solar at nearly P6 in new auction draft

The Energy Regulatory Commission (ERC) has proposed new Green Energy Auction Reserve (GEAR) prices for the fourth round of the Green Energy Auction (GEA 4), with rates ranging from P4.1480 to P6.5134 per kilowatt-hour (kWh), depending on the technology.

In its 14 April notice, the ERC set the proposed tariff for floating solar at P5.9515/kWh, followed by solar with battery energy storage systems at P5.2835/kWh, and rooftop solar at P4.7679/kWh.

Ground-mounted solar, which has drawn the most offers in past rounds, was proposed at P4.1480/kWh.

Onshore wind received the highest proposed rate at P6.5134/kWh, reflecting its higher capital and development costs.

According to the ERC, the proposed prices are based on updated cost benchmarks, financial assumptions, and tax treatments. GEAR rates act as price ceilings in Department of Energy (DOE)-led auctions, where renewable energy developers compete for power supply deals.

Under GEA 4, the DOE aims to auction capacities across multiple technologies as part of its renewable energy targets.

The ERC, on the other hand, aims to ensure project viability while protecting consumers through least-cost procurement.

As part of the regulatory process, stakeholders may submit comments on the proposal by 18 April, with justifications required for any suggested changes.