DOE may include liquefied natural gas in auction
By Lenie Lectura – July 31, 2024
from Business Mirror
The Department of Energy (DOE) is mulling over the inclusion of liquefied natural gas (LNG) in the fourth round of the Green Energy Auction (GEA).
The GEA program was designed to continuously trigger the increase of renewable energy (RE) capacity in the country. The DOE wants the GEA to be conducted on a yearly basis to promote RE as the country’s primary source of energy.
“With the anticipated high entry of RE into the grid resulting from the GEA, the DOE is considering liquefied natural gas (LNG) technologies for the upcoming GEA-4,” the agency said Tuesday.
A series of studies and simulations on several impacts, such as price, dispatch, contracts, energy and capacity, will be conducted by the DOE.
In the coming months, the DOE will release the indicative timeline of the GEA-4 activities through the issuance of the Notice of Auction (NOA). The GEA4 may happen in the fourth quarter.
The planned GEA4 originally covered only the Integrated Renewable Energy and Energy Storage System (IRESS).
IRESS is a comprehensive energy solution that combines renewable energy technology with energy storage systems (ESS). It involves the integration of RE sources with energy storage technologies like batteries, flywheel or pumped storage hydropower systems. This integration allows RE plants to optimize their operations by storing excess energy generated during peak production periods and utilizing it when needed, thereby reducing the required capacity from the grid.
By combining RE and energy storage, IRESS enhances the stability and reliability of the energy system, enabling a more consistent and efficient supply of power.
Currently, the DOE, in collaboration with development partners, is studying the design and economic viability of IRESS, according to Energy Undersecretary Rowena Cristina Guevara.
In the last two years, the DOE has conducted two rounds of auction which generated a total of 5,306 megawatts (MW) RE capacities committed to deliver power in 2024 to 2026.
Additional capacities will be auctioned for the third auction round within the third quarter. The GEA-3 specifically caters to non-FIT eligible RE facilities—geothermal, impounding and pumped-storage, as well as run-of-river (ROR) hydro which is a FIT eligible technology.
The DOE said these developments, along with the outcomes of the auctions, demonstrate that the GEA program can provide a mechanism in promoting the increased use of RE resources, contributing to the goal of achieving energy security and reliability.
