“Clean energy goal is the biggest sale yet to come.”

By Oliver Townsend Jul 10, 2024
DOE not setting aside clean energy goal as biggest 'sale' yet to come.pngOrginal image from: https://business.inquirer.net/468027/doe-not-setting-aside-clean-energy-goal-as-biggest-sale-yet-to-come

When it comes to achieving clean energy goals, the Department of Energy (DOE) in the Philippines is not backing down. In fact, they have some big plans in store for the future. With two green energy auctions set to take place by the end of 2024, the government is taking significant steps to accelerate the use of renewable energy in the country. But the biggest sale is yet to come.

The Green Energy Auction Program

At an event in Taguig City, Energy Undersecretary Rowena Cristina Guevara announced that the DOE would be welcoming bidders for the third and fourth rounds of the Green Energy Auction Program (GEAP). With a whopping 11,000 megawatts up for grabs, these auctions are a key part of the government’s efforts to increase the share of renewable energy in the power mix to 50 percent by 2040.

Round Three and Four Details

The third round of the program will see 3,000 megawatts bid out, covering geothermal, impounding hydro, and pumped-storage hydro. The fourth round will offer 8,200 megawatts, including an energy storage system (ESS) – a facility that can absorb energy directly from the grid or distribution system. Energy Regulatory Commission Chairperson Monalisa Dimalanta emphasized the need to formalize the process to ensure transparency and public consultation for the rates.

The Future of Green Energy Auctions

Looking ahead, Guevara hinted at an even more exciting auction on the horizon. The fifth round of the green power auction is expected to attract major investors, particularly as it will involve offshore wind projects. With the potential to generate gigawatts of clean energy, this upcoming auction is a significant step towards a more sustainable energy future for the Philippines.

Previous Auctions and Future Outlook

Since the first auction in 2022, where 2,000 megawatts were auctioned off, the government has been steadily pushing for more renewable energy capacity. The second round in 2023 fell short of expectations, with only 3,580.76 megawatts committed due to perceived low price caps set by the ERC. However, with the upcoming auctions and a focus on offshore wind projects, the future of clean energy in the Philippines looks promising.

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