DOE not putting aside clean energy target as biggest ‘sale’ yet to come

The Philippine government is accelerating the use of renewable energy and plans to hold two green power auctions by the last quarter of 2024, an official said Wednesday.

The biggest of them, however, are planned for next year.

During an event in Taguig City, Energy Undersecretary Rowena Cristina Guevara said the department will be inviting bidders for the third and fourth rounds of the Green Energy Auction Program (GEAP), where at least 11,000 megawatts will be up for grabs.

READ: Philippines’ Renewable Energy Still Below Global Average

The GEAP aims to accelerate the growth of renewable energy capacity in the Philippines to help achieve the government’s goal of increasing their share in the energy mix to 50 percent by 2040.

Guevara said that under the third part of the program, the Department of Energy (DOE) will announce a tender for 3,000 megawatts (MW) covering geothermal energy, hydropower and pumped-storage hydropower.

At least 8,200 MW will be auctioned in the fourth round, which will include an energy storage system (ESS). According to the DOE, an ESS refers to a facility that can absorb energy directly from the grid or distribution system.

Energy Regulatory Commission Chairwoman Monalisa Dimalanta said work on the process would begin immediately.

“We need to formalize this process because there will be public consultations on the rates, so it is a process we have to go through,” Dimalanta said.

READ: Renewable energy investment grows significantly

The DOE is also preparing for the fifth round of green energy auctions, which Guevara said could attract big investors because it will focus on offshore wind energy.

“The most exciting green energy auction is next year. We’re not just talking about megawatts, we’re talking about gigawatts. So that’s going to happen next year, and we’re still trying to get it in the middle of the year,” she said.

DOE conducted the first auction in 2022, auctioning 2,000 MW through electronic bidding. The second round was held in 2023, where the government received a total of 3,580.76 MW of committed capacity, well below the 11,600 MW of offered capacity, as the price caps set by the ERC were deemed low. —LISBET K. ISMAEL