DOE set to release terms of reference for 4th green energy auction
FILE PHOTO: Department of Energy (DOE) facade. Images from DOE / INQUIRER FILES
MANILA, Philippines — The Department of Energy (DOE) is set to release the terms of reference for the fourth round of the green energy auction (GEA) within this month.
For the first time since initiating the Green Energy Auction Program (GEAP), the agency will include an integrated renewable energy and energy storage system (IRESS) in the fourth round of clean energy bidding.
“In this auction round, IRESS shall only cover solar power plants integrated with Battery Energy Storage Systems (BESS),” the DOE said in a statement on Thursday.
READ: Solar firms urge DOE to speed up auctions
As explained by the DOE earlier, an IRESS is “the integration of renewable energy sources with energy storage technologies like batteries, flywheel or pumped storage hydropower systems.”
“By combining renewable energy and energy storage, IRESS enhances the stability and reliability of the energy system, enabling a more consistent and efficient supply of power,” it said.
Initially, the DOE considered including liquefied natural gas (LNG) capacity in the upcoming GEA-4, yet its studies prompted them to exclude LNG technologies from this auction.
“Following further analysis and modeling by the DOE, it was determined that these are the appropriate technologies for the 4th round,” it said.
The DOE plans to release the notice of auction and the schedule for the stakeholder dialogue on its website, while the TOR will be published this month.
“The TOR will outline specific provisions and procedures for the auction process, covering technical, financial, and commercial aspects. It will also incorporate insights and lessons learned from previous auction rounds,” it added.
The said document includes key GEA instruments such as the auction design, bonds, instructions to bidders, bidding data, forms and templates, and post-auction requirements.
The GEA is one of the mechanisms introduced by the DOE to promote the use of renewable energy in the Philippines.
This is in line with the government’s goal of increasing the RE share to 35 percent in the energy mix by 2030 and raising it further to 50 percent by 2040.
“It provides energy developers with opportunities to secure contracts that support the growth of the country’s sustainable energy production,” the DOE said.
