THE GOVERNMENT’S third round of the Green Energy Auction (GEA-3) might face delays, as the Department of Energy (DoE) has set a new timeline for finalizing its pricing mechanism.
In a departmental circular dated March 25, the DoE amended its previously issued circular and gave the Energy Regulatory Commission (ERC) 60 days to issue the rules on the price determination methodology (PDM).
This will be used to evaluate price offers submitted by bidders in GEA-3, which focuses on renewable energy projects that are not eligible for feed-in tariff (FIT).
The DoE has instructed the ERC to promulgate the rules upon the effectivity of the circular “taking into consideration the set of parameters and criteria based on, among others, cost range assumptions and weighted cost of capital of Project Internal Rate of Return.”
In February, the DoE announced that it was set to auction off 4,399 megawatts of renewable energy capacities under GEA-3. This auction would include non-FIT eligible renewable energy technologies such as geothermal, impounding hydro, and pump-storage hydro, according to the DoE.
GEA-3 also involves run-of-river hydro, which is a FIT-eligible renewable energy technology.
The new 60-day timeline would be beyond the date previously announced by the DoE.
The publication of the notice of auction, terms of reference, PDM for non-FIT eligible renewable energy technologies, and the green energy auction reserve price for run-of-river hydro was scheduled for April 29. The auction proper was set for Aug. 21.
ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta said that the deadline given by the DoE to release PDM rules would likely be around early June.
“Reason is really estimated period required for public consultations and evaluation,” Ms. Dimalanta said in a Viber message.
The ERC is also given within 60 days upon receipt of the DoE endorsement to complete its evaluation of the price offers submitted from the auction.
“After the ERC completes its evaluation and endorses the price offers to the DoE, the latter will confirm which bidders’ price offers are deemed acceptable,” the DoE said.
Energy Assistant Secretary Mylene C. Capongcol said in a Viber message that the department is “preparing the updated timelines.”
“The winning bidders for each auction round of Non-FIT-Eligible RE (renewable energy) technology will be those whose price offers have been evaluated and found consistent by the ERC with its PDM…,” the DoE said.
The GEA program aims to promote renewable energy as one of the country’s primary sources of energy through competitive selection. — Sheldeen Joy Talavera
