DOE names five locations for power-from-trash facilities
The Department of Energy (DOE) has identified five potential sites for waste-to-energy (WtE) projects under the sixth round of the Green Energy Auction, with a total expected capacity of around 170 megawatts (MW).
According to the terms of reference (TOR) for GEA-6, the DOE named five WtE lots: two in the Visayas, two in Mindanao and one in Luzon (which is Metro Manila).
Under the auction guidelines, the marginal offer will determine the final bid that completes the target capacity for each area.
For Metro Manila, the DOE is targeting 120 MW of capacity, which may be increased by as much as 15 MW. Bacolod and Cebu are each allocated 10 MW, with a possible addition of up to 3 MW. Cagayan de Oro has 10 MW with a 3-MW cap, and Davao has 20 MW with a 6-MW cap under the marginal offer provision.
The DOE now targets about 170 MW of capacity, capped at 30 MW. This is lower than the previous 335-MW projection, reflecting adjustments for the project development timelines.
Moreover, the DOE stated that the delivery commencement year for these awarded projects must be completed by 2028. The supply delivery period (SDP), which would allow these awarded technologies to generate power to the grid, has been set to 25 years.
These WtE projects would utilize waste feedstock sourced from highly urbanized cities or clustered local government units (LGUs). This would be done through employing a thermal combustion technology to process the municipal solid waste.
Winning bidders will be guaranteed a supply of feedstock from participating LGUs or areas. Their payments will follow a pay-as-bid basis, with each bidder compensated according to their offered rate per kilowatt-hour.
Furthermore, the DOE noted that WtE projects must have either a Biomass Energy Operating Contract (BEOC) or a Waste-to-Energy Operating Contract (WTEOC) to qualify for the Green Energy Tariff (GET).