MANILA, Philippines — The Department of Energy (DOE) is preparing for the conduct of a second green energy auction by June next year following the success of the first one this year.
“Based on our internal discussion within the green energy auction technical working group, we’re targeting to have the same period as the Green Energy Auction 1, which is June of 2023, but it will have more leeway,” DOE Assistant Secretary Mylene Capongcol said.
“In terms of timing, it’s not that tight as what we had done under the Green Energy Auction 1,” she said.
The Green Energy Auction Program (GEAP) was undertaken to support and facilitate immediate and timely investments in new or additional renewable energy capacities to ensure provision of adequate supply and competitive rates of electricity in the country.
Its aims to ensure transparent and competitive selection of renewable energy facilities to achieve reasonable rates and encourage, as far as practicable, the renewable energy entrants in the system.
The DOE awarded 19 contracts to various renewable energy developers after conducting the first round of the GEAP last June.
The first round of auction was considered a success, after having successfully generated almost 2,000 megawatts (MW) of capacities that were committed to deliver energy from 2023 to 2025 at a competitive price lower than or equal to the Green Energy Auction Reserve (GEAR) prices set by the Energy Regulatory Commission (ERC).
Capongcol said current preparations for the second auction include an ongoing assessment of the Green Energy Auction 1, such as lessons learned, as well as identifying the things that are needed to be strengthened and clarified.
“We’re starting the review right now so that we can already prepare for the initial task and activities in preparation for the Green Energy Auction 2,” Capongcol said.
“Essentially, it’s the enhancement that we’re looking for and to be adopted in the Green Energy Auction 2 program,” she said.
Capongcol said the DOE is also hoping for the ERC to come up with a Green Energy Auction 2 GEAR prices, which may include different tariffs for different technologies.
“So, for example, floating solar, ground mounted solar, and roof mounted solar. For the wind, we have onshore and offshore. So, those are the things that we are looking at, having differentiated tariffs for various RE technologies that will be part of the green energy,” she said.