Senator Pia Cayetano says the Energy Regulatory Commission (ERC) must finalize the pricing mechanisms for the third round of the Green Energy Auction (GEA) program so it can take place this year.
In a report by Philippine Star, Cayetano emphasized during a budget hearing the importance of resolving the issue to support the country’s shift to renewable energy.
For the upcoming GEA-3, the Department of Energy (DOE) plans to put forward contracts that will offer a total capacity of 4,399 megawatts (MW) for various hydro and geothermal projects.
The auction, however, is contingent on the ERC determining the reserve prices, which act as the maximum price ceiling for bids.
Cayetano acknowledged that some steps are still needed from ERC to finalize the process.
Meanwhile, the DOE has assured lawmakers that GEA-3 will be completed within the year, as it continues to coordinate with ERC.
Energy Secretary Raphael Lotilla stated that approved pricing methodologies are essential for the auction and are currently being worked on with the ERC.
In the last two years, the DOE conducted two GEA rounds, securing a total of 5,306 MW of renewable energy commitments for delivery from 2024 to 2026.
However, GEA-2 only secured 3,580.76 MW of committed capacity, representing about 30 percent of the 11,600 MW offered.
More than 8,000 MW of capacity remained unsubscribed due to several factors.
The DOE attributed the low investor turnout to supply limitations, insufficient incentives, grid impact study delays, and high financial guarantee costs.
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