The Philippine Solar and Storage Energy Alliance (PSSEA) is urging the Department of Energy (DOE) to expedite the much-anticipated fourth round of the Green Energy Auction (GEA-4), citing concerns over its delay and impact on investor confidence. PSSEA chair Theresa Cruz-Capellan warned that the one-year delay in the auction has already unsettled potential investors, urging the DOE not to push back the auction any further.
Originally scheduled to be conducted before the end of 2024, the GEA-4 auction plans allocating more than 8,200 megawatts (MW) of renewable energy (RE) projects, including energy storage systems (ESS), to help drive the country’s transition to clean power. The DOE has also indicated that the auction will include projects using liquefied natural gas, flywheels, and pumped storage hydro.
Capellan emphasized the importance of maintaining momentum toward the country’s net-zero emissions goals. “The industry strongly urges the DOE not to slide back and instead relentlessly pursue its net-zero emission goals by ensuring the implementation of the contracting round for solar in the first quarter of 2025,” she said. Further delays would severely impact investor commitment and could undermine the country’s renewable energy progress, she added.
Under the GEA framework, renewable energy producers compete for fixed, incentivized power rates by offering prices lower than or equal to the reserve prices set by the Energy Regulatory Commission. PSSEA believes that the inclusion of energy storage in the upcoming auction will help integrate more solar capacity into the grid, providing a short-term solution to grid stability and bolstering the country’s renewable energy mix.
Capellan said the growth of solar energy is critical as it remains the most affordable and quickest-to-install source of electricity. With the 2025 solar capacity forecast looking promising, the PSSEA urges the DOE to stay on course. “2025 will be another year of significance because of the pace of installation,” Capellan said.
As of October 2024, solar power accounted for 2,551 MW, or 8.6 percent of the country’s total installed capacity. Additionally, 116 MW of rooftop solar projects have been installed for personal use nationwide, further demonstrating the growing importance of solar energy in the Philippines’ future power landscape.
The PSSEA’s call to action comes as the sector continues to navigate the complexities of balancing energy security, sustainability, and economic growth, all while adhering to ambitious emission reduction targets.
