The Energy Regulatory Commission (ERC) will reschedule the release of the ceiling price for run-of-river (ROR) hydro, which is part of the third round of the Green Energy Auction Program (GEAP).
Philippine Star reported that the ERC deferred the preliminary Green Energy Auction (GEA) reserve price for ROR hydro due to unresolved policy issues.
ERC Chairperson and CEO Monalisa Dimalanta explained that the postponement was necessary as the commission is addressing concerns with the Department of Energy (DOE).
The issue revolves around the simultaneous implementation of the feed-in tariff (FIT) system and GEAP for ROR hydro projects.
For the third GEAP round, the government planned to auction contracts for impounding hydro, pumped storage hydro, ROR hydro, and geothermal, with a combined capacity of 4,475 megawatts (MW).
ROR hydro is the only renewable energy (RE) technology eligible for FIT, which guarantees fixed payments for emerging RE sources.
Dimalanta noted that the overlap between unsubscribed FIT capacity and additional capacity allocated for GEAP could confuse stakeholders and potentially create conflicts between the two policies.
She added that the ERC has sought DOE guidance on how to proceed, especially as it reviews the FIT rate for ROR hydro.
The commission aims to resolve the issue during its first meeting next year.
Meanwhile, ERC has approved the revised draft price determination methodology (PDM) for non-FIT-eligible technologies in GEA-3, though details of the revisions remain undisclosed.
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