Local companies urge the government to consider in future green energy auction programs (GEAP) hybrid power systems and their ability to create more reliable renewable energy (RE) technologies.
ACEN Corp. particularly said the inclusion of hybrid technology in future GEAP rounds, perhaps with incentives, should be considered.
Eric Francia, ACEN president and chief executive officer, told reporters the next GEAP should possibly include solar-storage hybrids, a technology that combines solar power and energy storage.
“Solar-storage hybrid should ideally be included at the next GEAP as this will help address grid constraints, as well as encourage distribution utilities to procure GEAP capacity because it enhances the reliability of GEAP as a source of supply,” Francia said.
He noted the cost of solar hybrids depends on the cost of battery storage but has advantage in terms of having a fixed cost in harnessing indigenous and clean energy that protects customers from price volatility.
Tetchi Cruz-Capellan, chief executive officer at Sun Asia Energy, in a statement said future GEAP rounds should also consider more advanced technologies like floating solar panels with a floor price that helps develop pioneering projects.
Capellan said such is ideal after the recent successful signing of renewable energy contract area utilization agreements between the Laguna Lake Development Authority, Sun Asia Energy and ACEN.
“The awarding of the lease contract in Laguna Lake unlocks the potential of the Laguna Lake. Supplying power to Metro Manila and Laguna requires gigawatts of power which needs thousands of hectares not readily available to developers. Using the lake surface for solar energy provides a clear pathway in realizing the energy security and decarbonization goals of the country,” Capellan said.
Capellan, who is also chairperson at the Philippine Solar and Storage Energy Alliance, said the tariff on floating solar is a good start as it already differentiates the economics with land-based issues but its floor price for the GEAP must be improved as it “has not yet captured the true cost of this emerging technology.”
Francia supports the call, explaining that building large-scale solar projects can be expensive at first because of the costs of infrastructure like roads and power lines.
“Large scale solar is therefore more expensive in the short term, but improves over time as it gets scale. To reach our renewable energy goals, the country needs large scale projects and the upfront costs need to be reflected in the tariff setting,” Francia said.
Jay Layug, Developers of Renewable Energy for Advancement president, said the issuance of awards for floating solar projects is a welcome development in helping the Department of Energy’s (DOE) achieve its RE targets.
“With the right price, sufficient period to construct and efficient government permit processing, any target can be easily met by the DOE given the abundance of RE resources we have in the Philippines,” Layug said.
The DOE targets to accomplish a 35 percent share of RE in the total energy mix by 2030 and 50 percent by 2040.
In a separate development, PLDT wireless unit Smart Communications is expanding the use of solar energy at cell sites by using battery storage systems as it seeks a greener network and use sustainable solutions in its daily operations.
“The Solar and Energy Storage as a Service model will improve availability of power supply especially in areas where there is limited or no commercial power allowing us to serve more remote communities. This will also reduce Smart’s use of power from carbon sources. Once fully implemented, we’re looking at a reduction of as much as 88 percent in greenhouse gas emissions in off-grid sites,” said Eric Santiago, PLDT and Smart first vice president and network head
Based on current proofs of concept, Smart sees cost efficiencies in the program by allowing the company to extend mobile signal availability to customers in remote areas not connected to the electricity grid while also limiting dependence on diesel generators in case of power failures and emergency situations.
Under the business model, a chosen supplier installs photovoltaic cells and a battery storage system in its cell sites and in facilities connected to the commercial power grid. The installation will help power the assets during peak hours and store surplus energy during off-peak hours for future use.
However, given the limited supply of non-conventional power from the market, Smart said it continues to search for more alternative power sources, particularly renewables.
