Group seeks differentiated tariff for floating solar power projects

MANILA, Philippines — The Philippine Solar and Storage Energy Alliance (PSSEA) is seeking a differentiated tariff in computing the Green Energy Auction Reserve (GEAR) prices or ceiling prices for floating solar in the second round of the green energy auction scheduled next month.

The PSSEA in its position paper is pushing for P7.3661 per kilowatt-hour as GEAR price for solar PV on water in the upcoming second round of the green energy auction program or GEA2.

Under the preliminary GEAR prices released by the Energy Regulatory Commission (ERC), GEAR price for floating solar is at P4.7565 per kW.

GEAR prices for rooftop solar and ground-mounted solar technologies, meanwhile, were pegged at P4.7156 per kWh and P4.2395 per kWh, respectively.

The GEAR prices to be set by the ERC are the maximum price offers in peso that shall be used as the ceiling price in the upcoming auction.

“Unlike in ground-mounted solar panels, solar PV on water incurs additional costs in construction and operations, including but not limited to, installation of floaters, anchoring and mooring of the system. These systems are the unique features of the solar PV on water and are indispensable in keeping solar PV on water in its place,” the PSSEA said.

The installation of solar also requires the integration of itself into the waves and thus, additional costs on the wiring to connect islands to one another is necessary.

PSSEA said compared to ground-mounted solar, solar PV on water incurs at least 20 percent higher project cost.

In view of the foregoing, the GEAR price for solar PV on water must be significantly higher than ground-mounted. Allocating a GEAR price for solar PV on water equivalent to or less than the ground-mounted solar will negate the purpose of GEAP and defeat the spirit of the GEAR rules in supporting the development of new renewable energy projects,” the group said.

PSSEA said a favorable decision on its petition will enable the emerging technology to participate in the green energy auction program and set the stage for its eventual commercialization in the country.

The GEA2 will offer a total capacity of 11,600 megawatts (MW) installation target, with 3,600 MW for 2024, 3,600 MW for 2025, and 4,400 MW for 2026.

To be auctioned are renewable energy capacities of 7,715 MW in Luzon, 2,695 MW in Visayas, and 1,190 MW in Mindanao from 2024 to 2026.

The installation targets for 2024 and 2025 cover ground-mounted and roof-mounted solar, onshore wind and biomass, and will include floating solar and waste-to-energy capacities for 2026.

The supply contract will be for a 20-year period beginning from the date of the commercial operation of the renewable energy project.

The Department of Energy targets to  conduct the auction on June 19, with the issuance of notice of award on June 28.

The green energy auction program or GEAP was designed to continuously trigger the increase of renewable energy capacity in the country, which will help realize the government’s target of 35 percent by 2040.

A total of 19 contracts were awarded by the DOE to various renewable energy developers after conducting the first round of the GEAP in June last year.