Deferred green energy auction to start this month – DOE
By The Manila Times – January 7, 2025
The government’s third green energy auction (GEA-3), where renewable energy producers will bid for incentivized power rates for certain capacities, will finally push through starting this month, the Energy department said
On Sunday, the department said the Energy Regulatory Commission (ERC) had released the price determination methodology for non-feed in tariff (FIT) eligible renewable energy technologies, which would mark the first day of the auction.
It did not provide additional details, but said that requirements were already being prepared for the registration of qualified suppliers beginning this Wednesday up to Jan. 10.
Comments and clarifications will be entertained up to Jan. 15 and a pre-bid conference will then be held on Jan. 24.
Registration document evaluation will begin as early as Jan 13 and notices to qualified bidders will be sent by Jan 17. Motions for reconsideration can be filed up to Jan. 22 and a final list of qualified bidders will be issued on Jan. 28.
The auction proper will start on Feb. 11 and notices of award will be issued from May 20 to 21. The certificates of award will follow beginning June 6 to July 4, the Energy department said.
The GEA-3 was supposed to have been conducted last year, but was deferred to the start of 2025 pending a decision on the pricing mechanism for each technology.
Modifications to the notice of auction and terms of reference were released last Dec. 27, with the government now offering 300 megawatts (MW) for impounding hydro projects across the country; 100 MW of geothermal (also nationwide); and two 2,000-MW lots for pumped storage hydro in Luzon and 250 MW in the Visayas.
The projects should be delivered by 2028-2030 for impounding hydro, 2025-2027 for geothermal, 2028-2030 for Lot 1 of pumped storage hydro in Luzon, 2031-2032 for the second Luzon lot and 2031-2023 for pumped storage hydro in the Visayas.
The Energy department said that run of river hydro would be excluded from the GEA-3 given the current FIT system that “to date remains undersubscribed.”
The ERC will no longer release the green energy auction reserve price for the technology, it added, but support and “appropriate market mechanisms” for run of river hydro and other emerging renewable energy technologies will continue to be provided.
