The Department of Energy (DOE) has declared 24 qualified bidders to compete for the 2,000 megawatt (MW) renewable energy capacity requirement in the first round of the Green Energy Auction Program (GEAP).
Of the 24 qualified bidders, eight of the bidders are from solar power sources, eight came from wind power, seven are from run-of-river hydropower, and one from biomass power.
“The success of this competitive process will set the benchmark for the future auction rounds, as the resulting Green Energy Tariff (GET) will reflect the value of electricity,” the DOE said in a statement.
Winning bids will be offered 20-year supply contracts, which should commence commercial operations from December 26, 2022 until December 25, 2025.
The Energy Regulatory Commission had set the Green Energy Auction Reserve (GEAR) prices at Php 3.6779 per kilowatt-hour (kWh) for solar, Php 6.0584/kWh for wind, Php 5.0797/kWh for biomass, and Php 5.4913/kWh for run-of-river hydro.
“[The GEAP] is a significant step in encouraging more power generation investments in renewable energy, while protecting the interest of Filipino consumers – a testament to the country’s commitment to developing indigenous and clean sources of energy at competitive prices,” outgoing Energy Secretary Alfonso Cusi said.
The GEAP will be able to provide substantial support to the participants of the Renewable Portfolio Standards (RPS) program to ensure the power companies’ compliance with the minimum requirements.
The RPS is a mandate that requires utilities to increase their use of renewable energy by one percent annually beginning in 2020 until 2030.
DOE is looking to conduct the GEAP on a yearly basis. “RE Developers who were not able to participate in last week’s auction may file their intent in the succeeding rounds,” it said.