THE Energy Regulatory Commission (ERC) said it has yet to determine the bid price for run-of-river hydro, an energy technology which will be offered during the third green energy auction (GEA-3) round next year.
In a commission meeting last week, the ERC said it deferred the release of the preliminary green energy auction reserve (GEAR) price for run-of-river hydro, citing the need for further consideration.
A GEAR price is the maximum price in pesos per kilowatt-hour the auction, and is determined by the ERC.
Run-of-river hydro is eligible for the government’s feed-in tariff (FIT) scheme.
GEA and FIT programs are both mechanisms designed to promote renewable energy. GEA uses competitive bidding to determine prices, whereas FIT offers fixed rates set by the government.
Both programs are designed to increase the share of renewable energy in the power generation mix.
“For ROR (run-of-river) hydro, we are clarifying a policy matter with the DoE (Department of Energy),” ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta said via Viber.
Ms. Dimalanta said at issue is the “parallel implementation” of the FIT and GEA program (GEAP) for ROR.
“We noted there is still unsubscribed capacity for FIT for this technology yet there is additional capacity allocated for GEAP,” she said. “This may confuse stakeholders and may cause one policy to conflict with the other.”
Ms. Dimalanta said that the commission is asking the DoE for a way forward. As soon as the DoE clarifies the matter, the ERC may discuss it in its first meeting for 2025, she said.
The ERC has adopted the pricing mechanism for non-FIT eligible technologies which include geothermal, impounding hydro, and pumped-storage hydro.
The ERC said it has resolved to adopt the revised draft price determination methodology, revised percentage weights, and revised parameters.
The DoE has said that the auction proper is scheduled for January, missing its target of conducting it within 2024.
It hopes to offer 4,475 megawatts (MW) of new renewable energy capacity.
“These projects will play a crucial role in meeting the country’s growing electricity demand while ensuring that future power generation is increasingly sustainable,” the DoE said.
The government held the first GEA in 2022 and attracted a total of 1,996.93 MW worth of renewables, while the second round was concluded last year, with 3,440.756 MW subscribed. — Sheldeen Joy Talavera