DOE reviewing options on unsubscribed renewable energy projects
By Alena Mae S. Flores – July 5, 2023, 6:01 pm
from manilastandard.net
The Department of Energy is reviewing its options on the remaining 8,019.24 megawatts of unsubscribed renewable energy projects for 2024 to 2026, Secretary Raphael Lotilla said Wednesday.
The DOE received commitment for only 3,580.76 MW out of the 11,600 MW offered under the Green Energy Auction Program 2.
“We recognize that the markets have spoken that in terms of the attractability of the options based on the maximum price, that was approved by the ERC, the bids were 1/3 of the volumes that were made available,” Lotilla said during the Pandesal Forum at Kamuning Bakery in Quezon City.
Lotilla said DOE would hold focus group discussions with the private sector following the GEAP 2 results on July 3.
He said while the private sector did not raise objections when the bids were announced, the level of interest dwindled after the announcement of the Energy Regulatory Commission’s GEA reserve prices.
Undersecretary Rowena Guevara said DOE would announce the successful bidders on July 12, hold meetings with auction participants in the succeeding two weeks, “then decide on the unsubsidized capacity.”
Lotilla said there are lessons to be learned from GEAP 2, especially after biomass and waste-to-energy technologies had no takers.
“I think this was a message not only to DOE, but also to our LGUs [local government units] that one of the sources of uncertainty is the stability of supply of waste and that is actually within the control of LGUs,” Lotilla said.
“If one puts up a waste-to-energy facility that will be able to recover investment over a 15 or 20-year period, they will need stable supply of waste. But if the supply of waste is not going to be assured to them, they’re not going to waste good investment involved,” he said.
The DOE will also look into the availability of transmission lines, which was raised due to the delays in the system impact studies.
Lotilla said the waiting time for the study range from 1.5 years to 2 years.
“So if you have to wait that long before you can even be given a go signal, then it can be a detriment to those who would like to be able to offer their capacities on renewable energy,” he said.
Former Energy Secretary Vince Perez and Alternergy Holdings Corp. chairman said GEAP shows the government’s resolve to accelerate the goal of transition to a renewable energy future.
Perez said investor interest in GEAP 2 auction was 82 percent higher than GEAP 1 of 1,966=MW capacity.
He commended the DOE for the well-organized conduct of actual bidding process in the second round of auction by allowing correction of bid application documents prior to final pre-qualification evaluation and implementing very transparent pre-bid and actual auction process.
Perez supported the move of DOE to hold discussions with the industry players “to address earlier concerns raised on transmission connection and permits processing among others, to ensure that the project capacities offered are delivered according to more realistic timelines and within competitive power rates.”
