The Department of Energy (DOE) has reassured lawmakers that the highly anticipated third round of the Green Energy Auction (GEA3) will be completed within the year, providing a crucial boost to the country’s renewable energy sector.
At a Senate hearing, Energy Undersecretary Rowena Guevara emphasized the urgency of the initiative, stating, “Our target for the Green Energy Auction 3 is to finish it before the end of the year. This will enable the integration of over 3,000 megawatts (MW) of pumped storage hydro capacity within five years.”
Senate energy committee chairperson Pia Cayetano highlighted the significance of GEA3 for investors eager to participate in the renewable energy landscape. “This assurance is essential as many stakeholders await the next Green Energy Auction. It addresses concerns raised by advocates like Senator Risa Hontiveros and myself regarding the challenges in fully embracing renewables quickly due to storage issues,” she noted.
GEA3 will focus on non-feed-in-tariff (FIT) eligible renewable energy technologies, targeting a capacity of 380 MW for geothermal, 699 MW for impounding hydro, and 3,120 MW for pumped-storage hydro. Additionally, the auction will include 200 MW of run-of-river hydro, classified as a FIT-eligible technology.
The DOE has set ambitious timelines for project deliveries, with impounding hydro and pumped storage projects expected to start between 2028 and 2030, while geothermal projects aim for operational status between 2024 and 2030. Run-of-river hydro projects must commence operations between 2026 and 2028.
Under the current GEA framework, renewable energy producers will compete for fixed power rates by proposing prices that are equal to or lower than the reserve prices established by the Energy Regulatory Commission. However, the government is still in the process of finalizing the pricing mechanics for GEA3.
As the energy sector looks toward a more sustainable future, the successful execution of GEA3 is poised to play a pivotal role in enhancing the Philippines’ renewable energy capabilities and meeting the growing demand for clean energy solutions.
