The Department of Energy (DOE) says that the integration of battery energy storage systems (BESS) into renewable energy projects under the Green Energy Auction Program (GEAP) 4 could increase offer prices.
In a report by Manila Standard, Energy Undersecretary Rowena Guevara said that integrating the energy storage system meant an inevitable hike in offer prices which could reach around Php 5 to Php 6 per kilowatt hour (kWh).
However, the DOE said that it is actively exploring strategies to reduce these costs. Guevara mentioned that the department is consulting with simulators and plans to hold public consultations to ensure that the final pricing is reasonable for energy generators.
One potential strategy that the department saw to mitigate the price increase is the use of transition credits for facilities currently relying on coal.
Transition credits will offset a portion of the cost of the renewable plant, lowering the price.
