The Department of Energy (DOE) was able to generate 3,580.76 megawatts (MW) of committed renewable energy capacities under the second round of the green energy auction program (GEAP), which will be delivered between 2024 to 2026.
The cost of this energy will be comparable to or less expensive than the Green Energy Auction Reserve (GEAR) pricing set by the Energy Regulatory Commission (ERC), the DOE said in a statement.
The finalized GEAR Prices for the GEA 2 were published by the ERC just recently for the following technologies: Php 4.8738 per kWh for rooftop solar, Php 4.4043 per kWh for ground-mounted solar, Php 5.3948 per kWh for floating solar, and Php 5.8481 per kWh for onshore wind, Php 5.4024 per kWh for biomass, and Php 6.2683 per kWh for biomass waste-to-energy.
Following the bidding, a total capacity of 1,968.982 MW was committed for the development of the ground-mounted solar for the 2024–2026 period.
For rooftop solar projects, a commitment of a total capacity of 9.39 MW for 2024 and 2025 was recorded, while floating solar projects recorded a 90 MW commitment for construction in 2026.
There were no pledges made about the development of biomass and waste-to-energy projects.
The DOE targeted 11,160 megawatts (MW) of RE under the second round of the GEAP. However, only 32.21% was consumed.
“We will review and we will also have discussions with the auction participants. We will decide on the unsubscribed capacity after our discussions with the auction participants,” Energy Undersecretary Felix Fuentebella said in a statement to the media.
By July 12, a list of the successful bids will be published on the DOE’s official website.
The Notice of Award will be issued on the same day, and the winning bidders will receive the Certificate of Award upon submission of the required post-auction documents within 60 days, as outlined in the GEA-2 Terms of Reference.
The post-auction requirements include submitting the GEA-2 Affidavit of Undertaking to fulfill the committed capacity, providing a Performance Bond, and furnishing a statement confirming the execution of the RE Contract for participants who were not holders of the RE Contract before GEA-2 registration.
Non-compliance with the above requirements would mean a forfeiture of the bid bond and the award.
With the GEAP, mandated participants of the Renewable Portfolio Standards (RPS) Program are given support to meet their minimum RPS requirements and ensure compliance with the program’s goals of steadily increasing the country’s overall RE capacity.
Moreover, the DOE urges RE developers who were unable to submit offers or win in the second auction round to participate in upcoming auction rounds as the GEA will be held yearly.