The Department of Energy (DOE) said that run-of-river (ROR) hydro will be excluded from the third round of the Green Energy Auction (GEA-3).
The DOE said the auction, scheduled for February (previously planned for this month), will focus on other renewable energy (RE) technologies, including impounding hydro, pumped-storage hydro, and geothermal.
The DOE explained that the exclusion of ROR hydro is due to the ongoing Feed-In-Tariff (FIT) system, which remains undersubscribed.
As a result, the Energy Regulatory Commission (ERC) will not release a Green Energy Auction Reserve (GEAR) price for ROR under GEA-3.
The DOE emphasized its commitment to "supporting and providing appropriate market mechanisms for ROR Hydro and other emerging RE technologies."
Last week, the ERC released the Price Determination Methodology (PDM) for non-FIT-eligible RE technologies under the GEA program.
ERC Chairperson Monalisa Dimalanta clarified that the decision to keep ROR hydro under the FIT system followed consultations with the DOE.
"We deferred resolving this... because we had to refer to the DOE... asking if it's possible to actually have parallel programs," Dimalanta said. "Then DOE decided to retain [ROR hydro] under the FIT, so we will now sit down and discuss it as a revision to the FIT rate."
The DOE stated that GEA-3 will facilitate increased integration of RE into the country's energy mix, enhancing grid stability and reliability, and ensuring a transparent and competitive selection process for RE facilities.