Energy regulator pressed to release pricing mechanism for GEA-3 --[Reported by Umva mag]

THE ENERGY Regulatory Commission (ERC) should finalize the pricing mechanism for the upcoming green energy auction (GEA) to ensure it proceeds as planned this year, a senator said.

“That is one of the priorities I think we need to do… the goal is to make the shift to renewables, and this is directly related to that. I hope we can get that done. I understand there are things that have to be done on the side of ERC as well,” Sen. Pilar Juliana “Pia” S. Cayetano said at the Senate budget hearing last week.

Energy Secretary Raphael P.M. Lotilla and ERC Officer-in-Charge Chairperson Jesse Hermogenes T. Andres were present at the hearing.

The DoE assured the lawmakers that GEA-3 will be completed before the end of the year.

“Our target for the Green Energy Auction 3 is to finish it before the end of the year such that the pumped storage hydro, [more than] 3,000 megawatts (MW), will be able to come in five years from now,” Energy Undersecretary Rowena Cristina L. Guevara said.

The green energy auction reserve prices, which set the maximum price offers for the auction, have yet to be released by the ERC.

“One of the items required there would be the approved pricing methodologies with ERC. We’re coordinating that,” Mr. Lotilla said.

Ms. Cayetano said that many investors are anticipating the third round of the GEA, which facilitates investments in the renewable energy sector.

In the last two years, the DoE has staged two rounds of GEA, which generated a total of 5,306 MW of renewable energy commitments for delivery in 2024 to 2026.

For this year, the agency has said that it would auction off renewable energy technologies worth a total capacity of 4,399 MW.

GEA-3 will cater to non-feed-in-tariff (non-FIT) eligible renewable energy technologies such as geothermal, impounding hydro, and pumped storage hydro.

The upcoming auction will also cater to run-of-river hydro, which is a FIT-eligible renewable energy technology.

The GEA program aims to promote renewable energy as one of the country’s primary sources of energy through competitive selection. — Sheldeen Joy Talavera

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