THE third green energy auction (GEA-3) attracted 7,500 megawatts (MW) worth of bids to construct renewable energy (RE) plants, exceeding the auction goal of 4,650 MW, the Department of Energy (DoE) said on Wednesday.
“The aggregate capacity of accepted bids underscores the growing confidence of investors and developers in the Philippine RE sector,” the DoE said in a statement on Wednesday.
At the auction on Feb. 11, the DoE received offers totaling 6,700 MW for pumped-storage hydropower projects in Luzon, against the target of 4,000 MW. The auction also hits 250-MW target for pumped-storage hydro in the Visayas.
Pumped storage hydropower can perform as an energy storage facility that can complement generation from variable renewable energy sources such as solar and wind, but can also inject power into the grid.
At present, the only pumped storage hydro facility in the country is the government-owned Kalayaan 1 and 2 plants in Laguna with capacity of over 300 MW.
Impounding hydro projects attracted 550 MW worth of bids, against the target of 300 MW. This technology is a type of hydroelectric power plant that uses a dam to store water in a reservoir.
Meanwhile, geothermal attracted bids for 30.887 MW, well below the 100 MW target.
Overall, the auction round received offers for 14 projects, with delivery periods of between 2025 and 2035.
In an advisory last month, the department identified 12 qualified bidders, including the units of Lopez-led First Gen Corp. and San Miguel Corp., for the 21 power projects on offer.
The DoE said that three qualified bidders withdrew prior to the auction, one did not submit a bid, and three were disqualified due to failure to submit the required documents.
The GEA program promotes renewable energy as a primary source of energy, with bidders undergoing competitive selection. The government is hoping to increase the share of renewable energy in the power mix to 35% by 2030 and to 50% by 2040.
The DoE is hoping to award contracts to the winning bidders starting June 6.
“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.
This year, the government is set to conduct two more auctions focusing on integrated renewable energy and energy storage systems and offshore wind power. — Sheldeen Joy Talavera