Green energy auction program update: ERC sets reserve price for waste-to-energy supply for Luzon Grid

The Energy Regulatory Commission set the preliminary green energy auction reserve price for biomass waste to energy at P6.4698 per kilowatt-hour.

Interested parties are required to submit their comments on the preliminary WTE on or before May 31, 2023, while the public consultations shall be held on June 1, 2023.

The Department of Energy has scheduled an auction on June 19 to offer a 30-megawatt waste-to-energy supply required by the Luzon grid in 2026.

The DOE is auctioning ground-mounted solar in Luzon of 1,420 MW, Visayas, 325 MW, and Mindanao, 280 MW for the 2024 supply year.

It will also auction roof-mounted solar of 160 MW for Luzon, 45 MW for Visayas, and 30 MW for Mindanao.

The auction will also feature onshore wind capacity of 800 MW for Luzon, 400 MW for Visayas, and biomass capacity of 20 MW for Luzon, 100 MW for Visayas, and 20 MW for Mindanao.

In 2025, DOE will auction 1,420 MW of ground-mounted solar in Luzon, 400 MW in Visayas, and 320 MW for Mindanao. It will also auction roof-mounted solar of 200 MW for Luzon, 30 MW for Visayas, and 30 MW for Mindanao.

In 2025, the DOE has scheduled an auction for renewable energy projects — 700 MW of onshore wind capacity in Luzon, 470 MW in Visayas, and 5 MW of biomass capacity in Luzon, 10 MW in Visayas, and 15 MW in Mindanao.

For the 2026 supply period, the DOE will continue the auction by offering various solar energy options. This includes 1,900 MW of ground-mounted solar capacity in Luzon, 350 MW in Visayas, and 300 MW in Mindanao. Additionally, there will be 300 MW of floating solar capacity in Luzon and 50 MW of roof-mounted solar capacity in Luzon, 40 MW in Visayas, and 20 MW in Mindanao.

Moreover, the DOE plans to auction 700 MW of onshore wind capacity in Luzon, 500 MW in Visayas, and 150 MW in Mindanao. Alongside this, there will be 10 MW of biomass capacity in Luzon.

The supply contracts for these projects will span 20 years, starting from the date of the commercial operation of each renewable energy project.