DOE issues rules, call for participants in 3rd green energy auction

The Department of Energy (DOE) on Thursday announced that it has issued the Notice of Auction (NOA) and Terms of Reference (TOR) that pave the way for the beginning of the third round of the Green Energy Auction (GEA-3).

In a statement, the DOE said the GEA-3 is targeting a total of 4,475 megawatts (MW) of new RE capacity, which would cover both non-Feed-in Tariff (FIT)-eligible and FIT-eligible technologies. The GEA-3 is an initiative aimed at facilitating and accelerating investments in renewable energy (RE).

The FIT system, contained in the Philippines RE Act of 2008, is designed to attract investments in the RE sector by offering emerging RE sources for electricity guaranteed payments on a fixed rate per kilowatt-hour.

The GEA-3 covers a targeted 4,400-MW Non-FIT eligible renewable energy technologies like geothermal, impounding hydro and pumped-storage hydro.

The estimated capacities for non-FIT eligible RE technologies include 300 MW from impounding hydro; 4,000 MW from pumped storage hydro; and 100 MW from geothermal.

The next auction program will also cover run-of-river (ROR) Hydro (targeted at 75 MW), which is a FIT-eligible renewable energy (RE) technology.

"We are pleased to release the Notice of Auction and Terms of Reference of the GEA-3, a pivotal mechanism in accelerating our nation's energy transition. By promoting competition and transparency, we are ensuring that the Philippines remains at the forefront of the global move towards a cleaner and more sustainable energy future," said Energy Secretary Raphael Lotilla.

The DOE said the target start of deliveries for impounding hydro and pumped storage hydro is 2028 to 2030 and 2025 to 2030 for geothermal.

For ROR, the target delivery will be in 2027 to 2029.

"By unlocking more capacity for renewable energy, GEA-3 provides a clear pathway to meet our electricity demands and in an environmentally sustainable way," said Lotilla.

The supply contract for FIT-eligible renewable energy projects will be for 20 years, starting from the commercial operation date (COD), according to the DOE.

Similarly, Non-FIT-eligible projects will also have a 20-year delivery period, beginning from their respective CODs.

Qualified suppliers wishing to participate in GEA-3 must register with the DOE by submitting the necessary documentation.

The DOE said the GEA Bids Evaluation and Awards Committee will review these applications, and a list of qualified bidders will be published on the DOE's official website prior to the pre-bid conference.

The registration of qualified suppliers will start three working days after the publication of the Price Determination Methodology (PDM) and Green Energy Auction Reserve (GEAR) Price by the Energy Regulatory Commission (ERC), the agency said.

The DOE said the GEA-3 is expected to stimulate more investments in renewable energy, fueling growth in this sector and reinforcing its role as a key pillar of the country’s energy future.

The Energy Department added that the TOR will govern the rules and procedures of the auction, including key elements such as auction design, bonds, instructions to bidders, bidding data, forms and templates, and post-auction requirements. — VDV, GMA Integrated News