ERC raises price cap for WTE auction

The Energy Regulatory Commission (ERC) has set a higher ceiling price for the waste-to-energy (WTE) auction just as it did for offshore wind, which could mean more expensive electricity for consumers.

In its latest resolution, the ERC approved and adopted a final green energy auction reserve (GEAR) price of P9.2959 per kilowatt-hour, up by 16 percent from the initially proposed P8.0167 per kWh.

The higher GEAR price gives power companies participating in the government’s special green energy auction program (GEAP) more room to value their projects.

However, it may also translate into increased pass-through costs for Filipinos, who are already grappling with high power bills that include costs meant to support renewable energy development.

The regulator said it arrived at the final GEAR price after “due deliberation and careful consideration” of the views and comments submitted by various stakeholders, including energy firms.

“The ERC is mandated to protect the public interest as it is affected by the rates and services of electric utilities and other providers of electric power… while ensuring the continued viability of the biomass WTE developers,” according to the resolution.

WTE technology converts biodegradable materials such as animal manure or agricultural waste into usable energy.

The WTE adoption is mandated under Republic Act 9513 or the Renewable Energy Act of 2008.

For the special GEAP round for WTE, the Department of Energy is offering a total capacity of 230 megawatts (MW), with delivery scheduled between 2028 and 2029.

Over the weekend, the DOE announced that registration for qualified suppliers is set for today, formally kicking off activities for the WTE auction.

The auction proper will run from July 27 to Aug. 13, with the issuance of certificates of award to winning bidders targeted for Oct. 15.

“The implementation of the special auction round for WTE marks a significant step toward strengthening the country’s waste management framework through the development of thermal combustion WTE facilities,” the DOE said.

Aside from the WTE auction, the government is also gearing up for the GEAP round exclusively dedicated to offshore wind projects.

For this landmark auction, the DOE will offer 3,300 MW of fixed-bottom offshore wind capacity, with delivery scheduled between 2028 and 2030.

In February, the ERC set a GEAR price of P11 per kWh for the offshore wind auction, higher than the initially floated P10.3859 per kWh.