The Department of Energy (DOE) has opened the fourth Green Energy Auction (GEA 4) through its newly released bidding framework.
In a statement on Wednesday, March 12, the DOE unveiled the terms of reference (TOR) which lays out the technical, financial, and commercial requirements that would manage the project selection for a transparent and competitive auction processing.
GEA-4 would be the first auction to welcome 1,100 MW renewable energy and energy storage systems (IRESS), specifically projects with battery energy storage systems (BESS).
The auction is also set to add 9,378 megawatts (MW) of new capacity from various solar projects such as ground-mounted, rooftop, floating, as well as onshore wind projects.
By 2026, the DOE has noted that it is expecting 2,372 MW worth of projects to be installed in Luzon, 252 MW worth of projects in Visayas, while Mindanao is anticipated to install 120 MW of projects under GEA 4.
By 2027, the government anticipates Luzon would have 1,976 MW of installed projects, Visayas with 350 MW, and Mindanao with 36 MW.
Subsequently, Luzon is expected to install 2,025 MW of projects under GEA 4 by 2028, 705 MW in Visayas, and another 26 MW for Mindanao.
By 2029, the auction capacity requirement for Luzon is set at 850 MW, 336 MW for Visayas, and 320 MW for Mindanao.
To participate in the auction, qualified suppliers must register with the DOE through submitting the required documentation in the TOR. Applications will eventually be screened by the GEA bids evaluation and awards committee before being listed as a qualified bidder by the DOE.
“For IRESS projects, only solar facilities that are not yet commercially operational and do not have a provisional authority to operate (PAO) or certificate of compliance (COC) may be registered. However, existing solar facilities currently facing curtailed operations under their PAO/COC may also qualify,” the DOE explained.
It also emphasized that all IRESS projects must comply with technical standards.
The notice of auction (NOA) has been made available today, with the timelines specified by the DOE are already in place.
According to the DOE, the new guidelines stated that qualified suppliers must have a renewable energy (RE) service contract or have a certificate of authority (COA) issued under the Revised Omnibus RE guidelines.
Moreover, the green erergy tariff (GET) for GEA projects will be subject to indexation, as determined by the Energy Regulatory Commission (ERC) and in line with the feed-in-tariff (FIT) rules.
“The supply contract for winning renewable energy projects will be for 20 years, starting from the commercial operation date (COD) of the plant,” DOE stated.
Registration for GEA 4 will begin the day after the ERC publishes the green energy auction reserve (GEAR) price.
Energy Undersecretary Rowena Guevara underlined the vital role of the projects under GEA 4, stating that it would help the country transition to clean energy and ensure energy security.
“By ensuring a transparent and competitive selection process for renewable energy projects, we are accelerating the shift toward a more sustainable, secure, and resilient energy system,” she added.