Longer delivery timeframes sought for bundled RE-energy storage capacity in GEA

A delivery timeframe of at least 3-5 years is being sought on the plan of the Department of Energy (DOE) for capacity tender of integrated renewable energy and energy storage system (IRESS) in the forthcoming green energy auction (GEA) round.

In an interview with reporters, ACEN Corporation President and CEO Eric T. Francia indicated that if IRESS capacity will be awarded with a power supply agreement (PSA) in the GEA this year or early 2025, the feasible commercial operation date (COD) for the winning plant could be between 2008 to 2030.

He explained that the infrastructure buildout for the technology coupling of RE and energy storage will be more massive compared to a pure solar development play, hence, capacity deliveries will also come longer.

“It’s probably three, four or five years,” he said when pressed on what would be a feasible capacity delivery date, although he emphasized that smaller capacity plants or the existing solar generating assets that may just need to add energy storage in their facilities might be able to inject capacity faster.

IRESS plants, in particular, are seen as the tangible solution that could manage the variability of renewables – primarily solar and wind; and that will also bring the country closer to an aspired green energy future wherein RE could thrive to be a reliable supply source in the system.

On media queries whether the Ayala-led firm would join the DOE auction in the IRESS development space, Francia stated that their decision on putting up a bid will “depend on the rules… it depends on the tenor, for example, if it’s going be just one year, I don’t think anyone can build an IRESS plant in one year.”

He further noted “that’s unless you already have the solar plant and then battery, or you would just add the battery …so depending on the size of the bid and the tenor, we’re interested but hopefully there’s enough time to prepare the other thing for IRESS.”

Francia highlighted that the ideal space that IRESS can occupy in the country’s power system would be for mid-merit capacity – and as had been shown in the competitive selection processes (CSPs) already carried out by power utility giant Manila Electric Company (Meralco), the installations needed for solar could be several times more expansive compared to just having the variable solar plant in itself.

For instance, he cited that to deliver 500-megawatt mid-merit capacity in the system, the scale of solar photovoltaics to be deployed must be at least 1,800 megawatts plus 2,000 megawatt-hours of energy storage – and for that to be concretized, the hurdles for the project sponsors will not only delve with land acquisition or project construction, but even provision of infrastructure support within the project site, like access roads; as well as the often-tricky concern of grid connection.

On warranted reserve price for IRESS, Francia asserted that one good reference that the regulators could weigh in had been the declared winning price offers in the RE-underpinned mid-merit capacity auctions of Meralco.