DOE ‘coordinating’ with ERC for fast issuance of GEA-3 bid prices

FILE PHOTO: Department of Energy (DOE) facade. Images from DOE / INQUIRER FILES

The Department of Energy (DOE) is already “coordinating” with the Energy Regulatory Commission (ERC) for the swift issuance of bid prices for the new round of green power auction.

This was after a lawmaker called for better deployment of renewables in the market.

For the Green Energy Auction-3 (GEA-3) to proceed this year, the ERC needs to release green energy auction reserve (GEAR) prices or the maximum price offers set in the bidding.

“That is one of the priorities I think we need to do because, in everything, the goal is to make the shift to renewables… I hope we can get that done,” Senator Pia Cayetano said at the recent budget hearing. Cayetano is the chairperson of the Senate committee on energy.

READ: DOE: 3rd clean power auction finished by yearend

DOE Secretary Raphael Lotilla echoed Cayetano on the role of GEAR prices in pushing for the GEA-3, which is targeted to be finished within 2024.

“One of the items required there would be the approved pricing methodologies with ERC. We’re coordinating that,” he said.

Meanwhile, in a separate statement Friday, the ERC vowed to speed up its regulatory processes.

READ: Green energy investors want gov’t to revise one-size-fits-all auction model

The fresh round of GEA—a government initiative meant to accelerate the transition to clean energy—will focus on geothermal, impounding hydro and pumped-storage hydro, and run-of-river hydro.

A previous auction conducted in 2023 recorded a weak performance because the incentives set by the ERC were perceived to be low by investors. The GEA-2 received a total of 3,580.76 megawatts (MW) in committed capacities, way below the 11,600-MW capacity on offer.

The Marcos administration wants more funds injected into the renewable energy market to hit its target of growing the share of renewable energy in the power mix to 35 percent by 2030.