AC Energy wants “stringent” and “reasonable” rules to be implemented in the government’s Green Energy Auction Program (GEAP), so it would attract serious bidders.
Based on a BusinessMirror report, AC Energy President and CEO Eric Francia said he is hopeful the government will craft the GEAP’s rules and parameters to make sure it would encourage bidders with real financial and technical capability and have serious plans of pursuing renewable energy (RE) projects.
Having penalties and performance bonds, Francia added, would make sure that bidders follow through with their respective commitments.
Under the GEAP, power generating companies (gencos) will have to bid through an auction. Gencos with the lowest tariffs will qualify to sell their output. The program supports the Department of Energy’s (DOE) goal to have RE comprising 35% of the country’s energy mix by 2030.
Power industry experts previously said that to get to 30%, an additional 20 gigawatts of new RE projects must be put up within 10 years, requiring an investment of over $20 billion. That amount could go higher, according to Francia, if battery energy storage systems are also included.
The Ayala executive said he recognizes the DOE’s efforts to increase RE installations under the Renewable Portfolio Standards (RPS) policy to 2.52% by 2023 from 1% currently.
RPS is the minimum level of electricity contracted from RE developers. Francia said his company is closely watching the policy’s development, which he hopes would be formalized soon.