Geothermal not part of first round of 2GW renewables auction in Philippines
The Philippines Department of Energy plans geothermal specific terms of reference for capacity auctions and not include it in the general auction planned for June 2022.
As reported locally, The Philippines Department of Energy is scheduling the first round of bidding of 2,000 renewable energy capacities under the Green Energy Auction Program (GEAP) on June 17, 2022 about two weeks before the exit of the Duterte administration.
An advisory issued by Energy Secretary Alfonso G. Cusi on Wednesday, May 11, stipulated that the registration of qualified RE suppliers shall be carried out on May 21-24 this year while the posting of qualified bidders will be on or before May 31.
The release though also points that the bidding round will only cover solar, wind, hydro and biomass technologies at this time.
The Department of Energy is planning separate terms of reference for capacity auction for geothermal energy, described as “conventional renewable energy technology” and a sub-segment of renewables.
The green energy auction reserve (GEAR) price will serve as the cost ceiling for financial offers that RE developers will be submitting per technology – and the likely winners are those with lower price tenders vis-à-vis the reserve price; and they must also possess the warranted technical and legal qualifications set forth in the TOR.
The RE auction shall satisfy the compliance of industry participants to the Renewable Portfolio Standards (RPS) policy designed by the government – and such shall primarily cover the distribution utilities (DUs) which are mandated to source prescribed percentage of their supply from RE generating facilities.
Source: Manila Bulletin