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Manila Bulletin devider Business devider DOE to offer 8,200MW capacity for RE investments under GEA-4

DOE to offer 8,200MW capacity for RE investments under GEA-4

Published Mar 1, 2024 05:24 am

At A Glance

  • The unique feature of the GEA-4, according to the DOE, will be the inclusion of RE capacities that shall be integrated with energy storage system (ESS) technologies, which is the government's response to the wish of investors.

The Department of Energy (DOE) will be offering 8,200 megawatts of renewable energy (RE) capacities in the fourth round of green energy auction (GEA-4) to be administered by the latter part of this year.

In her remarks during an Energy Transition forum convened by Climate Smart Ventures (CSV), Energy Undersecretary Rowena Cristina Guevara stated that the capacities on tender will be the unsubscribed capacity from the 11,600MW capacities that had been part of the GEA-2 process last year.

The unique feature of the GEA-4, according to the energy official, will be the inclusion of RE capacities that shall be integrated with energy storage system (ESS) technologies, which is the government’s response to the wish of investors.

Guevara qualified though that there’s no definite figure yet on the scale of capacity that shall be coupled with energy storage in the targeted fourth bidding for RE projects, adding that “we are still calculating the numbers.”

The DOE cannot also give a specific timeframe for now on when the GEA-4 will be carried out, adding that the current focus of the department is preparation for GEA-3 which will bid out RE capacities for hydro and geothermal technologies.

In the next round of biddings, Guevara indicated that a major concern to be sorted collaboratively with the Energy Regulatory Commission (ERC) will be the green energy auction reserve (GEAR) prices.

Notably, many investors showed lackluster interest in the last RE auction because of the lower-than-expected GEAR prices, hence, the DOE would not want that repeated in the next bid round.

On the more complicated concern of grid integration for the RE-generated capacities, Guevara emphasized that the government will be stepping up on the implementation of its self-designed Smart and Green Grid Plan (SGGP), which has been propounded to be placed under the charge of state-run National Transmission Corporation.

“Last month, President Marcos instructed the DOE and ERC to explore allowing third parties in constructing transmission projects to accelerate infrastructure addition,” the DOE official conveyed.

She acknowledged the energy department is fully aware that in accelerating the country’s decarbonization pathway that shall be underpinned with massive-scale RE investments, the most essential work to-do in reinforcing the infrastructure network will be to pursue green and smart transmission system.

“This underscores the urgency for SGGP, which will establish policies to fast-track transmission projects; integrate clean energy and ensure a sustainable, reliable and resilient power grid,” Guevara noted. 

 

Related Tags

Department of Energy (DOE) RE projects Energy Regulatory Commission (ERC) GEAR green energy auction
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