Ministry of Energy sees delay in rolling out green energy auctions
THE DEPARTMENT of Energy (DoE) said the Green Energy Auction Program (GEAP) may not launch as planned this month, with discussions still ongoing with attendees over the rules governing the programs.
“The conduct of the first auction may not take place this month, as initially reported due to ongoing discussions with relevant entities,” said Mylene C. Capongcol, director of the Renewable Energy Management Office of the DoE. Business world by e-mail last week.
“We are in the phase of finalizing the circular and are currently deliberating on the comments received from stakeholders, including the timelines of GEAP activities for the first auction,” she added.
The auction will adopt certain mechanisms of the current feed-in tariff program, excluding the “price discovery” process.
“For GEAP, the price will be based on the auction conducted,” Ms. Capongcol added.
The program allows eligible renewable energy developers to supply a portion of the electricity produced from their facilities to qualified customers who could subsequently benefit from electricity prices below market rates.
The GEAP aims to help the government achieve a 35% share of renewable energy in the electricity generation mix by 2030.
At the end of 2019, renewable energies represented 20.8% of the Philippines’ electricity mix, according to DoE estimates.
The Department of Energy originally planned to launch the auction for green energy providers in June, but postponed its target date to this month, noting that the auction committee was still compiling the data to the time. – Angelique Y. Yang