The Department of Energy (DOE) says that it will conduct the third round of the Green Energy Auction Program (GEA-3) on February 11, 2025, targeting 4,650 megawatts (MW) of renewable energy capacity, excluding run-of-river (ROR) hydro technology.
This development came after the Energy Regulatory Commission (ERC) released the price determination mechanism for the auction.
In a report by Manila Standard, the DOE stated that the auction will allocate installation capacities for impounding hydro, geothermal, and pumped storage hydro (PSH) projects, covering the period from 2025 to 2035.
Among the eligible technologies, PSH will have the largest installation target at 4,250 MW, with delivery staggered between 2028 and 2035 across three lots.
Additionally, the energy department said that Lot 1 will offer 2,000 MW for the Luzon grid from 2028 to 2030, Lot 2 another 2,000 MW for Luzon from 2031 to 2032, and Lot 3 will allocate 200 MW for the Visayas grid from 2031 to 2035.
The second-largest capacity is allotted for impounding hydro, with 300 MW set for delivery between 2028 and 2030. At the same time, geothermal will have a 100 MW target for delivery from 2025 to 2027.
The DOE clarified that ROR hydro was excluded from GEA-3 due to the ongoing feed-in-tariff (FIT) system, which remains underutilized.
As a result, the ERC will not release a Green Energy Auction Reserve (GEAR) price for ROR hydro under GEA-3, though the DOE affirmed its commitment to supporting ROR and other emerging renewable energy technologies.
The DOE plans to issue notices of award to winning bidders between May 20 and May 21, 2025, with certificates of award to follow from June 6 to July 4, 2025.
The DOE also highlighted that PSH projects must use variable speed technology (VST) to meet grid reliability requirements.
Bids that fail to offer VST for PSH facilities will be deemed technically non-compliant and will not be endorsed to the ERC, the agency warned.
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