Local and foreign investors are appealing to the Energy Regulatory Commission (ERC) for higher interest rates that must be factored into the calculation of tariffs on capacities offered by the Department of Energy (DOE) under the Green Energy Auction Program. ERC Chairperson Monalisa C. Dimalanta admitted that an increase on lending interest rates to the level of at least 8.percent  is foremost concern raised by renewable energy (RE) developers during a focus group discussions (FGDs) undertaken by the regulatory body with the relevant stakeholders. She said their plea was anchored on the rising interest rate that will confront investors when they will tap financing for the next wave of RE project developments in the country. In the last round of green energy auction reserve (GEAR) prices employed in the first GEAP last year, the interest rate had been set at 5.8-percent; but project developers do not see that anymore as a viable comfort level for the banks or lenders. Apart from pleaded hike in interest rate, the ERC chief similarly indicated that the other concerns of investors delve with the rising inflation rate; as well as the escalation on the cost of equipment and logistics that will be affecting overall project costs. “All of those things came out in the FGDs that we had, that’s why we’re confident now that the price we’ll be coming up with is more aligned with reality – because so many things have happened over the last 2-3 years, so all those are being taken into consideration,” Dimalanta stressed. She further noted that the GEAR prices will be set per technology, hence, there will be specific reserve prices to be prescribed for solar, wind, floating solar and biomass developments. The ERC chief emphasized that the timeline of the issuance of the GEAR prices will be firmed up once the Department of Energy (DOE) already issues the notice for the second round of GEAP which is targeted this year. “DOE said they’ll issue the notice, according to the rules, they’ll issue the formal notice to us and then we’ll start the formal process for setting the rates,” she stated. Dimalanta conveyed that “even before the formal process (for the second GEAP) has begun, we’ve conducted our FGDs already with the various stakeholders - so we’re almost ready with the rates.” Just this month, the energy department unveiled 11,610MW that will be offered in the second green energy auction – and that comprises of targeted capacities across technologies in the Luzon, Visayas and Mindanao grids with capacity deliveries from 2024 to 2026. The GEAR will serve as the ceiling of the price tenders that shall be accepted by the DOE in the RE capacity auction that shall be underpinned with long term supply agreements for the awarded capacities to the winning bidders.