Tycoons bag new green energy contracts

MANILA, Philippines — The power companies controlled by tycoons Enrique Razon Jr., Ramon Ang and Federico Lopez have emerged as top bidders in the government’s third green energy auction (GEA-3).

The Department of Energy (DOE) yesterday issued notices of award to potential winning bidders for GEA-3, which is poised to deliver over 6,600 megawatts (MW) in new capacity to the grid between 2025 and 2035.

Of the 6,350 MW for pumped-storage hydropower capacity, Razon’s Ahunan Power Inc. and Olympia Violago Water Inc. won 2,000 MW, while Ang-led San Roque Hydropower Inc. bagged 1,850 MW.

The remaining capacity went to Pan Pacific Renewable Power Phils. Corp. (2,000 MW) and Coheco Badeo Corp. (500 MW).

Pan Pacific likewise claimed all contracts for impounding hydro, with a total offered capacity of 300 MW.

As for geothermal, the Lopez Group was the last company standing, with Energy Development Corp. and Bac-Man Geothermal Inc. securing an aggregate capacity of 30.887 MW.

Under existing rules, all potential winning bidders are required to confirm their acceptance in writing and submit post-auction documentation within 15 days from the publication of the award notices.

Failure to submit the required documents after accepting the award will result in forfeiture of the bid bond.

“This latest round under GEA-3 marks another significant milestone in the Philippine government’s effort to accelerate renewable energy development, enhance grid reliability and meet long-term clean energy goals,” the DOE said.

The government opened the bidding for GEA-3 in February, attracting 7,500 MW of power projects.

The bids were then ranked by offer price – from lowest to highest – and were stacked by technology until the installation target was fully met.

GEA is a program designed to boost the share of renewables in the energy mix to 35 percent by 2030 and 50 percent by 2040 from the current 22 percent.

The first GEA round took place in June 2022, attracting a total of 1,996.3 MW of RE projects. This comprised ground-mounted solar (1,490.38 MW), onshore wind (374 MW), hydro (99.15 MW) and biomass (3.4 MW).

GEA-2, on the other hand, generated a total of 3,440.756 MW of RE capacities that have been committed for development and installation from 2024 to 2026.