Department of Energy expects the third round of the Green Energy Auction to proceed by January as the Energy Regulatory Commission readies price determination method
The Department of Energy (DOE) said the much-anticipated third round or GEA3 will take place no later than January 2025, with preparations moving forward.
DOE assistant secretary Mylene Capongcol said that the auction is expected to proceed as soon as the Energy Regulatory Commission (ERC) releases its price determination method (PDM) expected within the month. The PDM is a critical step in completing the auction process.
GEA3 is positioned to bring significant renewable energy capacity into the national grid. The auction will focus on non-feed-in-tariff (FIT) eligible technologies, targeting 380 megawatts (MW) of geothermal energy, 699 MW of impounding hydro, and 3,120 MW of pumped-storage hydro. Additionally, 200 MW of run-of-river hydro, which remains FIT-eligible, will also be included in the auction.
The DOE has outlined a delivery timeline for successful projects under GEA3. The start of power deliveries for impounding hydro and pumped storage hydro projects is expected between 2028 and 2030 while geothermal projects are seen to begin operations from 2024 to 2030. Run-of-river hydro projects are set to begin delivering energy between 2026 and 2028.
Under the current GEA setup, renewable energy producers bid for long-term contracts based on fixed power rates. Bidders will compete by offering prices at or below the reserve prices set by the ERC.
ERC chair Monalisa Dimalanta, when asked about the delay in the PDM release, said the commission anticipates completing the method in the coming weeks. “It is a realistic target for us to release the PDM within the month,” Dimalanta said.
Dimalanta’s confirmation of the schedule is welcome news for industry stakeholders, indicating further progress in the push for a cleaner, more sustainable energy future.
