Following the launch of the third Green Energy Auction (GEA-3), the Department of Energy (DOE) announced that submitted offers for renewable energy (RE) technologies from qualified bidders exceeded the initial capacity target.
In a statement on Wednesday, Feb. 12, the DOE reported that the total offered capacity in GEA-3, which includes impounding hydropower, pumped-storage hydropower, and geothermal, reached 7,530.887 megawatts (MW), surpassing the planned installation capacity of 4,560 MW.
The 14 submitted projects have a delivery period ranging from 2025 to 2035. However, the initial 21 projects, which were announced in late January, were reduced due to withdrawals before the auction, one project's inability to bid, and others' disqualification for failing to submit the required documents.
“The aggregate capacity of accepted bids underscores the growing confidence of investors and developers in the Philippine RE sector. The list of Winning Bidders will be posted on the DOE website once the Energy Regulatory Commission (ERC) has completed its review of the price offers,” the DOE explained.
According to the DOE, the bids were ranked based on offers and corresponding technology until the bids met the installation goal.
The offered capacity for impounding hydro in the Luzon, Visayas, and Mindanao grids reached 550 MW.
Two pumped-storage hydro projects in the Luzon grid have a combined offered capacity of 6,700 MW, while the pumped-storage hydro project in Visayas achieved the DOE’s target of 250 MW.
However, geothermal power in the Luzon, Visayas, and Mindanao grids, ran short of its target installation of 100 MW, as the offered capacity was 30.887 MW.
Pumped-storage hydro acts as an energy storage facility that can complement various renewable energy sources, such as solar and wind. It can also provide power to the grid to augment supply and balance the intermittency of RE sources.
The DOE noted that the 300 MW Kalayaan 1 and 2, located in Laguna, are currently the only state-owned pumped-storage hydro facilities in the Philippines.
The DOE assured that the Certificate of Award will be announced after the complete submission of the post-auction documents.
“The GEA underscores the Department’s commitment to creating a fair and competitive environment for RE development, ensuring transparency, innovation, and deployment of cost-effective RE technologies across the country,” the DOE said.