The Energy Regulatory Commission (ERC) will decide on the new price cap for the unsubscribed power generation capacity under the latest round of green energy bidding.
Before determining the new Green Energy Auction Reserve (GEAR) price, several factors will be considered for the auction of renewable energy capacity through the Green Energy Auction (GEA) program. These factors include the date of the investment decision, risk-free rate, and interest rate at the time of the investment decision, according to ERC Chair Monalisa Dimalanta.
If the Department of Energy (DOE) proceeds with another round of auction, the ERC would review the GEAR price. Dimalanta mentioned that while the ERC had already established the GEAR price for each technology type, they are considering setting price ceilings based on capacity to ensure fairness.
Dimalanta explained that if the unsubscribed capacities are auctioned at the end of the year or early next year, the rates and factors for the investment decision would be different. The ERC will also determine new rates for geothermal and impoundment hydropower, taking into account their front-end costs such as exploration and dam facilities.
Last week, the DOE announced 105 winning bids from the GEA-2, which covers renewable projects with a total capacity of 3,440.756 MW. However, the contracted capacity is only 29.7% of the 11,600 MW offered by the DOE. These projects will be implemented between 2024 and 2026 at competitive rates lower than or equivalent to the ERC’s price ceilings.
The ERC has set the GEAR prices as follows: ground-mounted solar – P4.4043 per kilowatt-hour, rooftop solar – P4.8783 per kWh, floating solar – P5.3948 per kWh, onshore wind – P5.8481 per kWh, biomass – P5.4024 per kWh, and biomass waste-to-energy – P6.2682 per kWh.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
Denial of responsibility! Samachar Central is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
