DOE bares details of winning green energy auction bidders

BY LENIE LECTURA – JULY 24, 2022
from Business Mirror

THE Department of Energy (DOE) has released over the weekend the bid details of the winning bidders that participated in the country’s first green energy auction (GEA) held last month.

“The advisory is being issued to reflect other details of the winning bids which are the offered price, committed delivery rate and timestamp when the bid was submitted electronically,” DOE Officer-in-Charge Donato Marcos said in an advisory posted on the agency’s website over the weekend.

The GEA Reserve (GEAR) prices for the first round of auction should not go beyond  P3.6779 per kilowatt-hour for solar, P6.0584 per kWh for wind, P5.0797 per kWh for biomass, and P5.4913 per kWh for run-of-river. The price cap for each renewable energy (RE) technology was determined by the Energy Regulatory Commission (ERC).

“In the determination of a representative project  and the computation of the GEAR prices, the commission was guided by the principal of efficiency and international benchmarks to ensure that only the cost of efficient plants will be passed on to consumers,” the ERC said.

The offer price of Amihan Renewable Energy Corp., for 70megawatts (MW) of capacity turned out to be the lowest among the wind power projects at P3.8583 per kilowatt hour (kWh). Amihan is 80 percent owned by ACEN Corp. of the Ayala Group.

Solar Philippines Calatagan Corp.’s price offer of P4.1998 per kWh is the second lowest. It will offer 30MW.

Another ACEN subsidiary, Bayog Wind Power Corp., offered 160MW for P4.4386 per kWh.

CleanTech Global Renewables, Inc., meanwhile, offered 100.8MW for P4.6368 per kWh.

Petrowind Energy, Inc.’s 13.2MW offered capacity has a corresponding offer price of P5.755 per kWh.

Solar

For solar, PAVI Green Renewable Energy Inc., the wholly-owned subsidiary of Prime Asset Ventures, Inc. (PAVI), the investment holding company founded by Paolo Villar, offered the lowest at P3.4 per kWh.

Greenergy Solutions Inc.’s offer price of P3.41 per kWh is the second lowest, followed by the P3.67 per kWh offer prices of Solar Philippines Commercial Rooftop Projects, Inc. and Solar Philippines Nueva Ecija Corp. in Luzon.

Solar Philippines Visayas Corp. offered P3.6779 per kWh for its 300MW capacity in Visayas. The same price was offered by Solar Philippines Commercial Rooftop Projects, Inc. for its 120MW project in Mindanao.

The lowest price offer for hydro came from Cordillera Hydroelectric Power Corp. at P5.3876 per kWh, followed by Hedcor, Inc. at P5.4717 per kWh.

Philnewriver Power Corp. offered P5.49 per kWh for its four projects in Mindanao.

Cotabato Sugar Central Company, Inc. offered P5.07 per kWh for its biomass project in Mindanao.

The DOE said that the success of this competitive process will set the benchmark for the future auction rounds, as the resulting Green Energy Tariff (GET) will reflect the value of electricity.

The GEA Program will also provide substantial support to the Mandated Participants of the Renewable Portfolio Standards (RPS) Program to ensure compliance with their minimum RPS requirements, since the GEAP is perceived to trigger the increase of RE capacity in the country, which will help the government attain its energy transition goals.

RE developers who were not able to participate in the auction may still join the succeeding rounds.