Corporate Impact and Industry Implications for RE Developers
The Department of Energy (DOE) on Wednesday announced that 21 renewable energy (RE) projects have qualified for the third round of the Green Energy Auction (GEA-3), signaling a significant shift in the nation’s energy landscape. This development is expected to intensify competition among energy producers and potentially reshape corporate strategies in the renewable energy sector.
In an update posted on the DOE’s website, the regulator said the projects include seven geothermal, four impounding hydropower, and 10 pumped storage hydro (PSH) facilities. The upcoming auction in February, aims to secure 4,650 megawatts (MW) of renewable capacity.
The geothermal segment will see bids from Maibarara Geothermal Inc., Energy Development Corp., and Bac-Man Geothermal Inc., while impounding hydropower will feature projects from Pan Pacific Renewable Power Phils. Corp., Pulangi Hydro Power Corp., and United Hydro Power Builders Corp. On the PSH front, qualified bidders include major players like San Roque Hydropower Inc., First Gen Hydro Power Corp., and Pan Pacific Renewable Power Phils. Corp.
The GEA-3 auction targets a mix of short- and long-term projects, with 300 MW allocated to impounding hydro projects, set to be operational between 2028 and 2030. Geothermal projects will secure 100 MW of capacity, with a deadline for completion between 2023 and 2027. PSH projects will account for the bulk of the auctioned capacity, totaling 4,250 MW, distributed between Luzon and Mindanao with operational dates ranging from 2028 to 2035.
The GEA-3, which will see energy producers competing for incentivized fixed power rates, is expected to drive down costs while accelerating the transition to renewable energy. Companies vying for contracts will have to offer prices below or equal to reserve rates set by the Energy Regulatory Commission, making it a critical opportunity for developers to secure long-term, lucrative power purchase agreements.
For energy companies, the GEA-3 auction represents a pivotal moment to secure a substantial share of the country’s expanding renewable energy market. The outcome of the auction will not only impact corporate bottom lines but also influence the Philippines’ energy mix and its goals for sustainability and energy security.
