The government is accelerating the use of renewable energy in the Philippines as it is set to conduct two green energy auctions by the last quarter of 2024, an official said Wednesday.
The biggest yet, however, is scheduled for next year.
At an event in Taguig City, Energy Undersecretary Rowena Cristina Guevara said the department would be welcoming bidders for the third and fourth rounds of the Green Energy Auction Program (GEAP) with at least 11,000 megawatts up for grabs.
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The GEAP seeks to speed up the growth of renewable energy capacity in the Philippines to help achieve the government’s target of increasing its share in the power mix to 50 percent by 2040.
For the third installment of the program, Guevara said the Department of Energy (DOE) will bid out 3,000 megawatts (MW) covering geothermal, impounding hydro and pumped-storage hydro.
At least 8,200 MW would be put on auction for the fourth round, which would include an energy storage system (ESS). According to the DOE, ESS refers to a facility that can absorb energy directly from the grid or distribution system.
Energy Regulatory Commission Chairperson Monalisa Dimalanta said they would start working on the process immediately.
“We need to formalize the process because there will be a public consultation for the rates, so there’s a process that we have to go through,” Dimalanta said.
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The DOE is also gearing up for the fifth round of the green power auction, which Guevara said could attract big investors as this would involve offshore wind.
“The most exciting green energy auction will happen next year. We are not just talking about megawatts, but gigawatts. So this is going to happen next year, and we’re still trying to push for a middle of the year,” she said.
The DOE held the first auction in 2022, auctioning off 2,000 MW through competitive electronic bidding. The second round was conducted in 2023, where the government received a total of 3,580.76 MW committed capacities, way below the 11,600-MW capacity on offer as the price caps set by the ERC were perceived to be low. —LISBET K. ISMAEL