Although the Department of Energy (DoE) is committed to completing the third round of the Green Energy Auction Program (GEA-3) this year, the process now hinges on the Energy Regulatory Commission’s (ERC) timely release of bid prices.
During the Senate hearing on the Energy Department’s budget, Senator Pia Cayetano called on the ERC to release the bid prices so the auction could move forward.
“That is one of the priorities I think we need to do. I hope we can get that done,” Cayetano said.
Energy Secretary Raphael Lotilla, who was present at the hearing, along with ERC officer-in-charge Jesse Hermogenes Andres, assured the senator that his office is coordinating with the power regulator for the release of the GEAR prices, which set the maximum price for the auction.
The DoE had already assured Cayetano that the GEA-3 would be completed by year’s end.
Augmenting RE capacities
The previous two rounds of auctions generated a total of 5,306 megawatts (MW) of renewable energy commitments for delivery from 2024 to 2026. However, GEA-2 secured only 3,580.76 MW out of the 11,600 MW offered.
DoE attributed the lower investor turnout during GEA-2 to factors like supply limitations, low incentives, delays in grid impact studies, and the high cost of financial guarantees.
GEA-3 will focus on non-feed-in-tariff (non-FIT) renewable energy technologies, including geothermal, impounding hydro, and pumped storage hydro. It will also include run-of-river hydro, which qualifies for FIT incentives.
The estimated capacities for non-FIT technologies are 699 MW from impounding hydro, 3,120 MW from pumped storage hydro, and 380 MW from geothermal.
Impounding hydro and pumped storage hydro projects are expected to deliver power between 2028 and 2030, while geothermal capacity is targeted for 2024 to 2030.
For run-of-river hydro, around 200 MW will be auctioned, with delivery expected between 2026 and 2028.
ERC vows speedy action
In a related development, Andres vowed to speed up regulatory processes to ensure a level playing field for stakeholders, ultimately benefiting consumers.
“It is our duty to protect the interests of the consumers because this industry is deeply imbued with public interest.”
“At the same time, we are also committed to providing a level playing field for all stakeholders. Investors and stakeholders alike can be assured of a fair and independent application of the law, as well as our support as the country’s sole energy regulator,” Andres said.