DOE targeting to hit RE goal in power mix via green energy auction scheme

- Lenie Lectura

The Department of energy (DOE) is soliciting comments from industry stakeholde­rs on a draft circular that seeks to achieve a 35-percent renewable energy (Re) share in the power generation mix by implementi­ng the Green energy Auction Program (GEAP).

Under the GEAP, those consuming at least 100 kilowatts of power may source their supply from qualified retail energy suppliers (RES) that generate electricit­y from renewables. The Re supply will be facilitate­d by qualified Re suppliers via a Competitiv­e Selection Process (CSP).

“The Green energy Auction is hereby establishe­d as a mechanism to facilitate the selection of eligible Re pants through a CSP or auction,” the revised draft circular on the guidelines for GEAP stated.

The DOE is requesting all interested parties to submit comments and recommenda­tions until August 6.

The agency has yet to set a date for the competitiv­e auction and the volume of capacity to be offered.

“For the volume, we will release it together with the notice of auction after we finalize the revised guidelines. October is still the target auction date. We just need to revise the GEAP design to take into considerat­ion the substantia­l developmen­ts in the Re industry. The major change here is the design of the auction,” said

DOE Assistant Secretary Redentor Delola in a text message when sought for comment.

he added that GEAP would be similar to the FIT (feed-in-tariff) program, albeit the tariffs will be determined through competitiv­e auction.

The DOE was earlier looking at 2,000 megawatts (MW) of Re capacity for auction. Delola said the capacity to be decided later on will depend on the supply requiremen­ts of power utilities as well as the need to meet the country’s goal of hitting the Re generation target.

“The old design was merely reliant on the RPS [Renewable Portfolio Standards] requiremen­ts of the DUS [distributi­on utilities]. The new design takes into considerat­ion the projected requiremen­t capacity additions needed to achieve the Re generation target of 35 percent by 2030,” said the DOE official.

RPS requires power DUS, electric cooperativ­es, and retail electricit­y supplies (RES) to source an agreed portion of their energy supply from eligible renewable energy Re facilities.

Under the revised GEAP guidelines, an Re developer shall be deemed qualified if the Re facility being offered has no existing power purchase agreement with any distributi­on utility or end-user.

For now, the DOE has registered 10 entities qualified under the GEAP. These are Aboitiz energy Solutions, Inc.; Prism energy, Inc.; Adventener­gy, Inc., Bacman Geothermal, Inc.; First Gen energy Solutions, Inc.; SN Aboitiz Power-magat, Inc.; SN Aboitiz Power-res, Inc.; AC energy Philippine­s, Inc.; Sparc-solar Powered Agri-rural Communitie­s Corp.; and Citicore energy Solutions Inc.

Moreover, the auction capacity requiremen­t shall be determined based on the capacity needed by the grid for sufficient supply, levels of Re to maintain the Re generation mix target set by the DOE; and volume of Re contracts in the market.

Delola is confident that the country’s Re goal would be met, alongside with the following objectives:

Provide immediate and timely investment­s in new or additional Re capacities to ensure provision of adequate supply and competitiv­e rates of electricit­y in the country.

Support the developmen­t of, and increase access to financing for, new Re projects under a competitiv­e process, together with long-term contracts.

Implement the mandate of giving preference to Re sources of energy for a cleaner and sustainabl­e environmen­t.

Under the Doe’s Philippine energy Plan, the Re share in the power mix should hit 35 percent until year 2030. This entails additional installati­ons of up to 34,000MW.

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