Green energy auction expected by year’s end

By Sheldeen Joy Talavera – November 7, 2024 | 8:29 pm
from Business World

PHILSTAR FILE PHOTO

THE green energy auction (GEA)  will likely proceed within the year even though the pricing mechanisms have yet to be issued.

“Towards the end of this year, we should finalize the GEA for hydro pump storage and geothermal, as well run-of-river and impounding hydro,” Energy Secretary Raphael P.M. Lotilla said during the Pilipinas Conference Thursday.

Mr. Lotilla said the GEA for integrated renewable energy storage systems (IRESS) “will also be coming soon as well.”

GEA is designed to increase renewable energy capacity to help the government meet its goal of 35% renewable energy in the power mix by 2035 and 50% by 2040.

In the last two years, the Department of Energy (DoE) has conducted two GEA rounds, which generated 5,306 megawatts (MW) of renewable energy commitments for delivery in 2024 to 2026.

For 2024, the DoE plans to auction renewable energy projects with a combined capacity of 4,399 MW.

The GEA third round will cover non-feed-in-tariff (FIT) eligible renewable energy technologies such as geothermal, impounding hydro, and pumped storage hydro.

The auction will also cover run-of-river hydro, a FIT-eligible renewable energy technology.

For GEA-4, the DoE is looking to offer IRESS and liquefied natural gas.

Earlier this month, the Energy Regulatory Commission (ERC) posted the draft price determination methodology (PDM) guidelines for renewable energy technologies for public  comment.

The ERC is responsible for establishing the PDM for GEA bidders.