Out-Law News 1 min. read
Successful bidders in Philippines green energy auctions announced
20 Jul 2023, 1:57 am
The department of energy (DoE) of the Philippines has announced who the successful bidders were for its second round of green energy auctions.
The notice published by the DoE (7-page / 1.34MB PDF) details the total capacity committed between 2024 and 2026. This includes 1.9GW of ground mounted solar; 10.1MW of rooftop solar; 1.5GW of onshore wind, and 90MW of floating solar. In the planned pipeline, 20 projects with 508.4MW energy capacity are set to be delivered in 2024; 62 projects with approximately 747MW capacity are planned to be delivered in 2025; and 23 projects with around 2.1GW capacity are planned to be delivered in 2026.
In further developments of the green energy auction, the DoE has prepared bidding guidelines (204KB / 8-page PDF) to include renewable energy projects which were previously not successful in participating in the green energy auction programme. This includes a different auction process and will require participants to register with the wholesale electricity spot market through a contract for difference mechanism.
Energy expert William Stroll at Pinsent Masons MPillay, the Singapore joint law venture between MPillay and Pinsent Masons, said: “These developments show that there is a clear investor demand for renewable energy projects in the Philippines. While many of the awarded projects will be developed by Philippines corporations, it is clear that international investment will be required to help finance and develop the projects.”
The DoE launched the second round of the green energy auction in April and in June the energy regulatory commission (ERC) released the final green energy auction reserve (GEAR) prices for the second-round green energy auction. The prices are US$0.0809 per kWh for ground mounted solar, US$0.0895 per kWh for rooftop solar, US$0.0991 per kWh for floating solar, US$0.1075 per kWh for onshore wind, US$0.0993 per kWh for biomass, and US$0.1153 per kWh for waste-to-energy, as of exchange rate of 14 July.
“The renewable energy market in the Philippines continues to develop at a rapid pace,” Stroll said.
Under the country’s green energy development roadmap, renewable energy is targeted to have a 35% of the country’s power mix by 2030, ramping up to 50% by 2040.
The DoE launched its first green energy auction in 2022, ultimately awarding 19 contracts to develop 1.57GW of renewable energy projects which will be awarded a 20-year feed-in-tariff at prices equal to or lower than the GEAR prices set by the ERC.
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