The Department of Energy (DOE) is set to conduct the third round of the green energy auction (GEA-3) in August to foster the growth of renewable energy (RE) as a primary energy source for the country as well as carry out energy security.
GEA-3, scheduled for August 21, 2024, would focus on non-feed-in-tariff (Non-FIT) eligible RE technologies, including geothermal, impounding hydro, and pumped storage hydro.
Run-of-river hydro, a FIT-Eligible technology, is also included in GEA-3.
The assumed capacities for non-FIT eligible RE technologies included 699 megawatts (MW) from impounding hydro, 3,120 MW from pumped-storage hydro, and 380 MW from geothermal.
For run-of-river hydro, 200 MW is expected to be auctioned.
In a report by the Manila Standard, DOE noted that the delivery commencement period (DCP) for impounding hydro and pumped-storage hydro is set from 2028 to 2030, while geothermal is set from 2024 to 2030.
The target DCP for run-of-river hydro is between 2026 to 2028.
To continue the initiative, the DOE aims to publish the notice of auction, terms of reference, and price determination methodology for non-FIT eligible RE technologies by April 29, 2024.
The notice of award for run-of-river hydro will be issued on Sept. 18, 2024, and for non-FIT eligible technologies on Dec. 10, 2024.
The Green Energy Auction Program (GEAP), which was introduced in 2021, is part of the DOE’s scheme to entice current and prospective energy players to invest in the RE industry of the country.
This strategy paralleled the goal of the Philippine Energy Plan by achieving a 35% RE capacity mix by 2035 and 50% by 2040.