DOE moves 2,000MW RE auction to October


The Department of Energy (DOE) has postponed to October the targeted auction of 2,000 megawatts (MW) of renewable energy (RE) capacity.

Based on a Manila Bulletin report, Energy Asec. Redentor Delola said the agency will have to move the auction to a later date due to delays, so they are working on completing the entire auction by October this year. 

Delola explained that the department is still finalizing the simulations in line with the impact of the COVID-19 pandemic and the clean energy scenario, which has been included in the updated Philippine Energy Plan.

He added that the DOE is still evaluating the needed adjustments to the annual increment on the Renewable Portfolio Standards (RPS) requirements and that the set number of 2,000MW remains to be a moving target.

According to industry sources, the initial number showing up for the RE auction is lower than 2,000MW due to low power demand during the pandemic. With this, the DOE is deciding if this has to be re-calibrated based on the unchanging demand during normal conditions. 

The government has also yet to determine the “green energy tariff” for the capacity to be tendered under the Green Energy Auction Program (GEAP), which has yet to be finalized by the Energy Regulatory Commission.

The DOE said the green energy tariff will set the price signals on the commercial value of electricity generated from RE facilities. It noted that RE prices shall be established on a peso-per-megawatt hour (Php/MWh) basis to reflect the actual value of power generated by the qualified RE project and to be consistent with RPS’s on-grid rules and requirements.

Earlier, the department announced that it may delay the first round of its GEAP as it continues to collect data as any new findings may have an impact on the design offer.

The GEAP allows qualified RE developers to supply a portion of electricity generated by their facilities to eligible customers who may enjoy lower power prices. The auction is covered by the RPS, a mechanism that provides an alternative market for RE investments.