DOE targets 160 MW from biomass auction

MANILA, Philippines —  The Department of Energy (DOE) is putting 160 megawatts (MW) of biomass capacity up for auction, with the maximum bid price expected to be released next month.

Under the terms of reference (TOR), the sixth green energy auction (GEA-6) round offers 120 MW of standalone biomass capacity and an additional 40 MW of co-generation capacity.

“The delivery dates are from July 2027 to December 2030,” Energy Undersecretary Rowena Cristina Guevara said.

The DOE issued both the TOR and notice of auction on Sept. 1, inviting all qualified suppliers to participate.

Guevara expects the Energy Regulatory Commission to release the GEA reserve price or the maximum allowable bid on Oct. 1, ahead of the auction proper later this year.

A biomass facility, as defined under the Renewable Energy Act of 2008, uses organic materials such as agricultural residues and animal waste to produce heat, steam, mechanical power or electricity.

This may be classified as either a standalone or co-generation facility. Standalone projects mainly produce electricity for the grid, while co-generation facilities generate power plus useful heat or steam for industrial processes.

For GEA-6, the certificates of award to winning bidders are targeted for issuance early next year.

The GEA program aims to spur investments in renewables as the country accelerates its energy transition.

By 2030, the government targets increasing the share of renewables in the energy mix to 35 percent from the current 25 percent.

While renewables remain at the forefront of the transition, Energy Secretary Sharon Garin highlighted the potential of nuclear power to help ensure a stable and reliable electricity supply.

“It is within this broader energy landscape that nuclear energy will play a role in our future power mix,” Garin told a recent nuclear conference.

The Philippines, she added, is open to developing both small modular reactors and new conventional nuclear power plants.

The government initially targeted the deployment of at least 1,200 MW of commercially operational nuclear capacity by 2032.

The DOE, however, noted that the timeline could be delayed until 2035.