ERC finalizes price ceilings for green auction

MANILA, Philippines — The Energy Regulatory Commission (ERC) has released the final Green Energy Auction Reserve (GEAR) prices or ceiling prices for the second round of the green energy auction or GEA 2 which will be conducted by the Department of Energy.

The ERC said the final GEAR prices were approved following a thorough and due deliberation, and after careful consideration of the various views and comments submitted by stakeholders.

Guided by the policy objectives in the EPIRA and the Renewable Energy Act of 2008, the commission has set the GEAR prices for the following technologies: rooftop solar at P4.8738 per kilowatt-hour (kWh), ground-mounted solar at P4.4043 per kWh, floating solar at P5.3948 per kWh, onshore wind at P5.8481 per kWh, biomass at P5.4024 per kWh, and biomass waste-to-energy at P6.2683 per kWh.

Compared to the preliminary GEAR prices released by the commission in April, prices for rooftop solar, ground mounted, floating solar and biomass were raised, while only that for wind was lowered.

Floating solar recorded the biggest increase from P4.7565 per kWh to P5.3948 per kWh.

The Philippine Solar and Storage Energy Alliance earlier sought for a differentiated tariff in computing the GEAR prices for floating solar in the second round of the green energy auction, noting that solar PV on water incurs additional costs in construction and operations.

The ERC is mandated to determine the GEAR prices, which are the maximum price offers per kWh that shall be used as the ceiling price in the upcoming auction.

The ERC said the GEAR prices issued are applicable to the capacities for the second round of the green energy auction program.

The GEA 2 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.

A total of 19 contracts were awarded by the DOE to various renewable energy developers during the first round of the green energy auction conducted in June last year.