THE Energy Regulatory Commission (ERC) has issued its proposed ceiling prices for the fourth round of the green energy auction (GEA-4) which will be held this year, with the auction focused on integrated renewable energy and energy storage systems (IRESS).
In a notice, the ERC proposed a preliminary price of P4.1480 per kilowatt-hour (kWh) for ground-mounted solar, P5.9515 per kWh for floating solar, and P4.7679 per kWh for rooftop solar.
For other technologies, the ERC is looking to set a ceiling of P6.5134 per kWh for onshore wind and P5.2835 per kWh for solar systems equipped with energy storage.
GEA-4 will offer 10,478 megawatts (MW) of RE capacity, which include some that will be paired with battery energy storage systems, the Department of Energy (DoE) said last month.
This covers 3,940 MW of ground-mounted solar, 3,000 MW of floating solar, 48 MW of roof-mounted solar, and 2,390 MW of onshore wind.
The ERC determines the green energy auction reserve (GEAR) price, or the maximum price in pesos per kilowatt-hour that will serve as the ceiling price for the auction.
The ERC is scheduled to conduct public consultations on the proposed preliminary GEAR prices for GEA-4 next week.
The GEA program aims to promote RE as a primary source of energy through competitive selection. RE developers compete for incentivized fixed power rates by offering their lowest price for a certain capacity.
As a flagship government initiative, the program is expected to contribute to the government’s goal of 35% RE in the power generation mix by 2030.
Winning RE projects will be awarded a 20-year supply contract starting from the commercial operation date of the plant.
“By providing energy developers with opportunities to secure long-term contracts, GEA fosters sustainable energy production while ensuring a more stable, reliable, and greener power supply for the nation,” the DoE said. — Sheldeen Joy Talavera
