By Sheldeen Joy Talavera, Reporter
THE GOVERNMENT was unable to hit its installation target of 10,653 megawatts (MW) of renewable energy (RE) capacities under the fourth round of green energy auction (GEA-4).
In a statement late on Wednesday, the Department of Energy (DoE) said the latest auction results attracted 9,423.622 MW of RE capacities coming from 111 bids, against the installation target of 10,653 MW. This was equivalent to an 88% turnout rate.
The GEA-4 covered multiple RE technologies, including ground-mounted, roof-mounted, floating solar, onshore wind, and integrated renewable energy and energy storage systems (IRESS).
“While the auction successfully subscribed to a large majority of the installation targets, there remain unsubscribed installation targets, notably floating solar, onshore wind, and IRESS,” the DoE said.
These unsubscribed installation targets will be offered for subscription to other qualified bidders with accepted bids that exceeded the installation targets.
“This mechanism ensures that unsubscribed installation targets are maximized under GEA-4, and no opportunity for RE development is left unutilized,” it said.
The winning bidders are directed to submit post-auction requirements, including the affidavit of undertaking, performance bond, and system impact study.
Projects awarded under GEA-4 are expected to start delivery between 2026 and 2029.
“The results of GEA-4 affirm the strong partnership between government and the private sector in driving RE deployment,” Energy Secretary Sharon S. Garin said in a statement.
“By securing over 9,000 MW of new clean energy commitments, and by offering unsubscribed installation targets to other eligible bidders, we are ensuring that our transition is ambitious, inclusive, and resilient.”
In July, the DoE said that it received more than 200 bids from 142 companies for evaluation.
Notable participants include some of the country’s biggest power developers — Citicore Renewable Energy Corp., San Miguel Global Power Holdings Corp., ACEN Corp., Aboitiz Power Corp., and First Gen Corp.
The GEA program aims to promote RE as one of the country’s primary sources of energy through competitive selection. The supply contract for winning RE projects will be for 20 years, starting from the commercial operation date of the plant.
As a flagship government initiative, the program is seen to contribute to the country’s goal of achieving a 35% RE share in the power generation mix by 2030.
Ma. Theresa Cruz-Capellan, chairman of the Philippine Solar and Storage Energy Alliance, said that the 88% subscription is already a good turnout rate given that the auction’s focus is geared towards emerging technologies.
“Let us be reminded that the auction, as conceived, is directed towards emerging technologies,” Ms. Cruz-Capellan told BusinessWorld. “In this round, two emerging technologies participated — IRESS and floating solar.”
IRESS is a technology that allows renewable energy plants to optimize their operations by storing excess energy.
Floating solar involves solar panels that are installed on floating structures.
“The technical standards for these two technologies are not yet set thereby increasing financial risks, and bankability of projects,” she said.
Ms. Cruz-Capellan said that the series of consultations with developers and the sharing of information on the cost, operations and construction timeline helped attract a good number of bidders.
Angelo Kairos Dela Cruz, executive director of think tank Institute for Climate and Sustainable Cities, said that the recent auctions conducted by the government shows why the Philippines is the second-most attractive emerging economy for RE investments worldwide.
Mr. Dela Cruz said that the recent and next rounds of GEA are learning from the shortcomings and gaps of the first round.
“What’s really good with the DoE is that you can see how the policies are flexible enough to learn from the mistakes and from the gaps,” he said. “I think this humility, at some point, allows the DoE to come up with better policies without losing its credibility as a very strong institution here in the Philippines.”
The first GEA that was conducted in 2022 until the latest round that has yet to be completed promise a total RE capacity of 20 gigawatts.
GEA-5 dedicated to offshore wind projects is set to offer 3,300 MW of capacity this year.
“Through bold targets, innovative policy tools like the Green Energy Auction, and active collaboration with the private sector, the country continues to pave the way toward a resilient and climate-centered power system that benefits all Filipinos,” the DoE said.