The Energy Regulatory Commission (ERC) has finalized the price caps for the Department of Energy’s second Green Energy Auction Program (GEA-2), with rates ranging from P4.4043 per kilowatt-hour (kWh) to P6.2683 per kWh, depending on the renewable energy source.
In a statement, the ERC announced that it has approved the Green Energy Auction Reserve (GEAR) prices for solar, onshore wind, biomass, and waste-to-energy after careful deliberation.
According to the ERC, ground-mounted solar will have the lowest GEAR price at P4.4043 per kWh, followed by 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.
The final prices were determined after a series of public consultations held in May.
These prices will serve as the basis for the price offers of more than 100 qualified bidders participating in the upcoming GEA-2. The Department of Energy aims to auction off 11,600 megawatts (MW) of renewable energy capacity that must be operational within the next three years.
DOE to auction 11,000-MW renewable energy capacity
The majority of the total capacity, 7,620 MW, will be sourced from solar power, while 3,720 MW will come from onshore wind, 230 MW from biomass, and 30 MW from waste-to-energy.
Various industry leaders have advocated for higher GEAR prices, citing higher development costs, specifically for floating solar plants. The ERC took these concerns into consideration when determining the price ceilings.
The preliminary GEAR prices last month ranged from P4.24 per kWh to P5.98 per kWh.
In 2022, the DOE auctioned off 2,000 MW of renewable energy capacity in the first GEA, awarding 19 contracts to different developers.
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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.
