DOE jacks up pumped-storage hydropower capacity for GEA-3

MANILA, Philippines —  The Department of Energy (DOE) has set a new installation target for pumped-storage hydropower (PSH), which will take center stage in the upcoming third round of the green energy auction (GEA).

The DOE has upgraded the installation target for PSH technologies to 4,250 megawatts from 4,000 MW, a move aimed at addressing the country’s growing energy demand in the long term.

The government expects the country’s peak demand to reach 42.8 gigawatts by 2040, a significant increase from 16.6 GW recorded in 2022.

The adjustment to the PSH capacity was included in the supplemental guidelines and modification to the notice of auction and terms of reference for GEA-3 slated this year.

Of the total targeted capacity, 4,000 MW are expected to be built across two lots in Luzon, while the remaining 250 MW will be developed in a lot in the Visayas.

These PSH projects are targeted for delivery between 2028 and 2035.

PSH facilities are a type of energy storage system technology that “uses electric energy to pump water from a lower elevation reservoir to a higher elevation reservoir,” the DOE said.

When needed, the water flows back from the upper to the lower reservoir, enabling a turbine with a generator to produce electricity.

To ensure reliable services to the grid or distribution system, the DOE said PSH facilities participating in GEA-3 must incorporate variable speed technology (VST), with supporting documentation required in the bid submission.

In PSH projects, VST refers to the use of adjustable-speed pump-turbine units instead of traditional fixed-speed units. This technology enables the pump-turbine speed to be controlled via a frequency converter.

In addition, VST is expected to improve the operational flexibility and efficiency of PSH facilities, making them more effective in integrating clean power into the grid.

The DOE said bids that do not offer such technology will be deemed “not technically compliant” and, as a result, will not be endorsed to the Energy Regulatory Commission.

Apart from PSH, the government will also offer 300 MW of impounding hydro, 100 MW of geothermal and 75 MW of run-of-river (ROR) hydro technologies.

Except ROR hydro, all other technologies are not eligible for the feed-in tariff, a policy that offers guaranteed fixed payments for emerging renewable energy (RE) sources.

Through GEA-3, the DOE wants to ensure a transparent and competitive selection of RE facilities in line with efforts to position the Philippines at the forefront of the global move toward energy transition.

Under the Philippine Energy Plan, the country aims to scale up the share of renewables in the country’s power generation mix to 35 percent by 2030 and 50 percent by 2040.

Currently, renewables only account for about 22 percent of the energy mix.