Renewable energy (RE) stakeholders are urging the government to modify the auction design for various RE technologies, as they believe the current one-size-fits-all approach may deter potential investors.
In a report by Inquirer, SunAsia Energy President and CEO Maria Theresa Cruz-Capellan said that the Department of Energy (DOE) needed to formulate a more refined plan of action for its Green Energy Auction (GEA) program.
The SunAsia CEO pointed out that technologies like gas, pump storage, and geothermal require specialized auction designs, separate from those used for solar and wind.
Cruz-Capellan pointed out that although traditional solar and wind projects have identified their hurdles, advanced technologies like floating solar are grappling with complexities in transmission, mooring, and securing funding. Similarly, geothermal energy is hindered by costly drilling operations, while natural gas remains vulnerable to global supply dependencies.
The SunAsia CEO, who is also leading a significant floating solar project on Laguna Lake, expressed reservations about the second GEA cycle.
She attributed this shortfall to the perceived inadequacy of the incentives set by the Energy Regulatory Commission (ERC).
Additionally, First Gen Corporation Vice President Carlos Lorenzo Vega echoed the same sentiments, noting a substantial gap in the second auction. He pointed out that the 8-gigawatt shortfall indicated a potential issue with the pricing signals being established.
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