Round 5 of RE auctions attracts nine bids

NINE valid bids for development projects that could generate at least 42 megawatts were received in the fifth auction round for pre-determined renewable energy (RE) resource areas, the Department of Energy (DoE) said.

In a statement on Tuesday, the DoE said the open and competitive selection process (OCSP) round attracted bids for six sites.

The OCSP is a mode for the selection and award of RE contracts particularly for pre-determined areas (PDAs) offered by the DoE through a bidding process. PDAs refer to locations with potential RE resources that are suitable for further development.

Following the opening of bids, the OCSP Review and Evaluation Committee has moved to endorse these to the legal, technical, and financial evaluation  stage.

The DoE said all nine bid submissions were found complete with the documentary requirements and shall proceed to detailed evaluation upon payment of the prescribed fees.

The bids cover the 6.70-megawatt (MW) Guinoba-an No. 1 and 2.90-MW Guinoba-an No. 2 projects in Albay, the 8.3-MW Pacu-an Hydroelectric Power Projects in Negros Oriental, the 25-MW Southern Leyte Geothermal power project, the Cabusao wind project in Camarines Sur and the San Isidro wind project in Samar. The last two projects have capacities that are yet to be determined.

The potential power projects are expected to contribute to the Philippines’ goal to increase RE share to 35% by 2030 and 50% by 2040.

The government expects RE investments to strengthen long-term energy security in the face of periodic disruptions due to conflicts in the Middle East.

“Expanding renewable energy capacity is one of our key strategies to strengthen the Philippines’ energy independence as tensions in the Middle East continue to affect global markets,” Energy Secretary Sharon S. Garin said.

In the first two months, the Board of Investments approved 35 projects worth P47 billion. Of the total, the energy industry, which includes RE, accounted for the largest share at P22.4 billion or 47.7%.

The DoE said the energy investment approvals signal sustained investor confidence in the energy transition.

“Our response is two-pronged: we are managing immediate risks while accelerating long-term structural reforms,” Ms. Garin said.

Around 1,471 MW of committed renewable and energy storage projects are expected to be injected onto the grid within the month.

“Every additional megawatt of renewable energy we bring online strengthens our ability to withstand global volatility,” Ms. Garin said. “This is how we convert investment momentum into real energy security: more stable supply and greater resilience.” — Sheldeen Joy Talavera