Philippines is set to invite bids from renewable energy developers for the installation of approximately 8 gigawatts (GW) of geothermal and hydropower capacity. This ambitious endeavor comes as part of a fresh round of auctions aimed at promoting sustainable energy solutions, as announced by a government official on Thursday.
The target capacity of 8 GW, equivalent to 8,000 megawatts (MW), represents the remaining portion of the 11,600 MW of additional supply sought by the Department of Energy through auctions held on July 3. These auctions encompassed various renewable sources, including solar, onshore wind, biomass, and waste-to-energy resources. However, developers subscribed to only about a third of this capacity, totaling 3,580.76 MW. This decision was influenced by concerns regarding the tight installation timeframe and power transmission issues, as the government aimed for the additional supply to be operational within the next three years.
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The Department of Energy is currently working towards issuing the notice of auction and guidelines, with plans to release them in November. This marks the third bidding round under the Green Energy Auction program, as confirmed by Assistant Secretary Mylene Capongcol during an industry forum.
The government is actively addressing the concerns raised by developers, indicating its commitment to fostering a conducive environment for renewable energy projects. In 2022, several renewable energy developers were awarded contracts to install a combined total of 2,000 MW in the first tariffs-based auction conducted under this program.
The Philippines, located in Southeast Asia, has set ambitious targets for renewable energy adoption. It aims to increase the share of renewables in its energy mix, currently dominated by fossil fuels, to 35% by 2030 and 50% by 2040, compared to the 22.8% achieved last year. Notably, the country allows full foreign ownership in the renewable energy sector, attracting interest from both foreign and local investors, including major conglomerates presently operating coal-based power plants. This move signifies a critical step towards achieving a more sustainable and environmentally friendly energy landscape in the Philippines.
