The Department of Energy (DOE) has released a notice of auction for 2,000 megawatts (MW) of renewable energy (RE) capacity across the three main power grids in the country under the Green Energy Auction Program (GEAP).
In the document released by the department, 1,400MW are up for auction in the Luzon Grid, 400MW in the Visayas Grid, and 200 MW in the Mindanao Grid under the first round of the Green Energy Auction for RE.
For the Luzon Grid, the DOE is looking for suppliers for 900MW for solar power, 360 MW of wind energy, 80MW hydropower, and 60 MW biomass.
For the Visayas Grid, 260 MW solar power, 120 MW biomass, and 20 MW wind power are up for auction, while 100MW of solar power and 50MW each for hydropower and biomass have been allotted for the Mindanao Grid.
The GEAP looks to boost RE as the country’s source of power.
“The DOE has determined that the competitive bidding process under the GEAP is one of the best ways to accelerate the development of renewable energy systems and the promotion and commercialization of its applications, encourage free and active private sector participation and investment in all energy activities, and provide adequate capacity to meet demand, including reserve requirements,” the guidelines stated.
RE facilities are deemed eligible if they have been operating and were built in compliance with the Republic Act 9513 or the RE Act. The company should also have no power purchase agreements with any distribution utility (DU) that may come in conflict with the agreed delivery dates.
The GEAP also features the Green Energy Tariff, which influences the commercial value of power generated from qualified RE facilities, and sets a benchmark price for DUs under an Opt-in Mechanism.
