The Department of Energy (DOE) of the Philippines has now issued a draft notification to regulate the renewable energy auctions in the country. This comes three years after the country issued revised norms to regulate the auctioning of green projects in the country on November 3, 2021.
These proposed norms are meant for the non-FIT eligible renewable energy technologies in the green energy auction programmes (GEAP). The first proposed amendment in its existing rules included the pricing methodology in such cases related to the pre-auction process.
The draft norms from the Philippines DOE have fixed a time period for this. The draft paper in this regard said, “Within sixty (60) calendar days, the ERC shall promulgate rules on the Price Determination Methodology (PDM) taking into consideration the set of parameters and criteria based on among others cost range assumptions and Weighted Cost of Capital of Project Internal Rate of Return (PIRR). These shall to be used in its evaluation of Price Offers submitted by Bidders.”
The draft norms also said that the DOE would also endorse the respective prices offered. “After evaluation, the DOE shall endorse the respective Price Offers of legally and technically compliant bids to the ERC. The ERC shall, within sixty days upon receipt of the DOE endorsement, evaluate the Price Offers of the Bidders endorsed by the DOE based on its approved PDM for Non-FIT eligible RE Technologies.”
The DOE draft norms also said that all previous issuances, rules and regulations in this regard would be repealed, amended or modified accordingly. The draft norms also said that the circular would be implemented 15 days after its publication.
