DOE to adjust volume for renewable energy auction

By Myrna M. Velasco – August 10, 2020, 9:00 PM
from Manila Bulletin

The Department of Energy (DOE) is re-calibrating the aggregate volume of renewable energy (RE) capacity that it will auction next year for the distribution utilities’ compliance with the Renewable Portfolio Standards (RPS) policy.

The initial capacity planned for competitive bidding via an online system had been at 2,000 megawatts, but DOE Assistant Secretary Redentor Delola said that will be adjusted depending on the final consolidated numbers that they will gather from DUs on their RPS’ compliance requirements.

He added the 1.0-percent annual increment on RPS-underpinned capacity may also be modified depending on the DOE’s re-calculation of the country’s yearly requirements for RE capacity in the energy mix so it could hit the 2030 target under the RE plan.

“We are seeing that the 2,000MW originally proposed to be auctioned will change depending on the requirement of DUs for compliance to the RPS; and that will also depend on the possible amendments to the required volume,” the energy official said.

Presently, the energy department is collating data from all private DUs and electric cooperatives so it can tangibly gauge the actual volume that it will auction next year for the RPS-linked capacity.

“For the Renewable Portfolio Standards composite team, we’re already consolidating the requirements of DUs and we’re trying to account what is the volume they’re looking at just by buying RE certificates…then we will consolidate all the figures to be able to come up with a new volume,” Delola said.

The adjusted RE volume as well as the proposed system of online competitive bidding next year shall be submitted to Energy Secretary Alfonso G. Cusi and the Energy Regulatory Commission (ERC) by September 30 this year for the requisite approvals.

On the targeted annual percentage increase, Delola noted this may need recasting, so it could go along with the 35-percent RE capacity target by 2030.

The energy official emphasized that the stranded RE capacities from existing solar, biomass and other RE technologies will still be included in the RPS volume count, but he emphasized a separate auction will have to be undertaken for such capacities.

Essentially, he indicated that there will be two-tiered bidding system, to disparately account for volumes from existing RE projects; and then for the greenfield or new capacities entering under the RPS system.
“The existing capacities are still part of the plan. We will still come out with the rules for the bidding.

There may be separate bidding for the existing capacities and greenfield projects – we’re still crafting

the rules for that,” he stressed.