The Department of Energy (DOE) of the Philippines was able to generate 3,580.76 Megawatt (MW) of committed renewable energy capacities under the second round of the Green Energy Auction Programme (GEAP), which would be delivered between 2024 to 2026.
DOE disclosed this in a recent statement. It further said, “The cost of this energy will be comparable to or less expensive than the Green Energy Auction Reserve (GEAR) pricing set by the Energy Regulatory Commission (ERC).”
The ERC recently finalized and published GEAR Prices for the GEA 2 for the technologies such as Php 4.8738 per kWh for rooftop solar, Php 4.4043 per kWh for ground-mounted solar, Php 5.3948 per kWh for floating solar, and Php 5.8481 per kWh for onshore wind, Php 5.4024 per kWh for biomass, and Php 6.2683 per kWh for biomass waste-to-energy.
As per the government’s bids, a total capacity of 1,968.982 MW was committed to developing the ground-mounted solar for 2024–2026.
Talking about rooftop solar projects, the note said that a commitment of a total capacity of 9.39 MW for 2024 and 2025 was recorded while floating solar projects recorded a 90 MW commitment for construction in 2026.
The DOE revealed that the targeted 11,160 megawatts (MW) of RE was under the second round of the GEAP. However, only 32.21% was consumed.
“We will review and also discuss with the auction participants. We will decide on the unsubscribed capacity after our discussions with the auction participants,” Energy Undersecretary Felix Fuentebella said in a statement. Moreover, by July 12, a list of successful bids will be published on the DOE’s official website.
“The Notice of Award will be issued on the same day, and the winning bidders will receive the Certificate of Award upon submission of the required post-auction documents within 60 days, as outlined in the GEA-2 Terms of Reference,” said the statement.
The post-auction requirements include submitting the GEA-2 Affidavit of Undertaking to fulfill the committed capacity, providing a Performance Bond, and furnishing a statement confirming the execution of the RE Contract for participants who were not holders of the RE Contract before GEA-2 registration. In case of failure to meet the above requirements would lead to forfeiture of the bid bond and the award.
With the GEAP, participants of the Renewable Portfolio Standards (RPS) Program are given support to meet their minimum RPS requirements and ensure compliance with the program’s goals of steadily increasing the country’s overall RE capacity.
However, the DOE urges RE developers who fail to submit offers or win in the second auction round to participate in upcoming auction rounds, as the GEA will be held annually.