DOE to award contracts for 2,000-MW supply capacity

MANILA, Philippines — The Department of Energy (DOE) is looking to award contracts to renewable energy (RE) firms vying to develop 2,000-megawatt (MW) capacities in the country’s first Green Energy Auction Program (GEAP) within the week.

In a text message yesterday, DOE Undersecretary Felix William Fuentebella said the agency hopes to announce winning bidders today after completing evaluations.

“The target (to award contracts is) early this week…there are validations needed such as the performance bond submissions,” DOE-Renewable Energy Management Bureau (REMB) Mylene Capongcol said in another text message.

The DOE, through the Green Energy Auction Bids Evaluation and Awards Committee (GEA-BEAC), said 24 qualified bidders participated in the auction last week, which was done through an electronic bidding platform.

Of the 24 bidders, eight were from solar, another eight were from wind, seven were from run-of-river hydro, and one was from biomass, the agency said.

Energy Secretary and GEA-BEAC chairperson Alfonso Cusi said the country’s first green energy “is a significant step in encouraging more power generation investments in renewable energy, while protecting the interest of Filipino consumers – a testament to the country’s commitment to developing indigenous and clean sources of energy at competitive prices.”

The agency said the success of this competitive process will set the benchmark for the future auction rounds, as the resulting Green Energy Tariff (GET) will reflect the value of electricity.

Last month, the Energy Regulatory Commission (ERC) set the ceiling rate for the first round of GEAP, with the Green Energy Auction Reserve (GEAR) price for solar at P3.6779 per kilowatt-hour (kWh), wind at P6.0584 per kWh, biomass at P5.0797 per kWh, and run-of-river hydro at P5.4913 per kWh.

Through the GEAP, the DOE paved the way for immediate and timely investments; supported the development of, and increased financing access for new or additional capacities under a competitive process; as well as implemented programs that promote environmental sustainability, which will aid the country’s transition to renewable energy.

“The teamwork among the members of the energy family and industry stakeholders is going a long way in our desire to utilize more sustainable supply sources to meet our electricity demands,” Cusi said.