The Energy Regulatory Commission (ERC) has finalized the price caps for the Department of Energy’s second Green Energy Auction Program (GEA-2). The rates range from P4.4043 per kilowatt-hour (kWh) to P6.2683 per kWh, depending on the renewable energy source.
The ERC approved the Green Energy Auction Reserve (GEAR) prices for solar, onshore wind, biomass, and waste-to-energy after thorough deliberation.
According to the ERC, the prices for each energy source are as follows: ground-mounted solar at P4.4043 per kWh, rooftop solar at P4.8738 per kWh, floating solar at P5.3948 per kWh, onshore wind at P5.8481 per kWh, biomass at P5.4024 per kWh, and waste-to-energy at P6.2683 per kWh.
These prices were determined after a series of public consultations held in May. They will serve as the basis for the price offers of more than 100 qualified bidders participating in the GEA-2 scheduled next week. The Department of Energy aims to auction off 11,600 megawatts (MW) of renewable energy capacity that must be ready within the next three years.
The majority of the capacity, 7,620 MW, will come from solar power, followed by 3,720 MW from onshore wind, 230 MW from biomass, and 30 MW from waste-to-energy.
Industry leaders had advocated for higher GEAR prices, citing higher development costs, particularly for floating solar plants. The ERC took these concerns into account when deliberating on the price ceilings.
Last month, preliminary GEAR prices ranged from P4.24 per kWh to P5.98 per kWh.
In 2022, the Department of Energy auctioned off 2,000 MW of renewable energy capacity in the first GEA, awarding contracts to 19 different developers.
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