DOE sets separate auctions for biomass, WTE projects

By Lenie Lectura – March 10, 2025
from Business Mirror

THE Department of Energy (DOE) will conduct a separate green energy auction for biomass and waste-to-energy (WTE) technologies in hopes there will be interested renewable energy (RE) developers this time.

Under the proposed GEA-4.1, which covers WTE and biomass projects, the agency is targeting to make this happen within the year.

“If you notice, GEA 4 does not have waste-to-energy and biomass because, based on our consultation, the price of the levelized cost of producing biomass and waste-to-energy are quite high. So, we’re looking at options on how to find out the cost of this technology. That is why, there’s a study that is now being done at our biomass group.

“Hopefully, within a year, we will be able to conduct the auction program. For the option bid, which is quite challenging as well, because of the huge investment and the capacity that will be built, we’re now doing a study. We’re seeking advice from various experts on how to develop the terms of reference for the option bid projects,” said Energy Assistant Secretary Mylene Capongcol during the Association of International Energy Negotiators (AIEN) Asia Chapter event held last week.

Capongcol presented the opportunities in the Philippines RE sector.

During the GEA2 in 2023, the DOE received bids equivalent to only 3,580.73 megawatts (mW) out of the 11,600mW in RE capacity offers. However, there were no offers received for biomass and WTE.

GEA 3 auction was conducted last month, with an offered capacity of 7,500MW, exceeding the installation target of 4,650 mW. The auction covered pumped-storage hydro, impounding hydro, and geothermal.

GEA-4 auction, meanwhile, has yet to happen. The DOE is targeting to release the terms of reference for the Integrated RE and Energy Storage System (Iress) anytime soon.

GEA-5, which covers offshore wind (OSW) projects is also targeted to happen this year. The target issuance of terms of reference is in the second quarter while auction is likely to happen in July.

“For GEA 5, what we’re doing is the front runners. Those that have advanced activities as the first possible participants to the auction, which we hope to do it within the year,” said Capongcol.

The GEA program is designed to help the Philippines achieve its RE goal which is to increase the RE share of the power generation mix to 35 percent by 2030 and 50 percent by 2040.