ERC sets ceiling rates for fourth green auction

MANILA, Philippines — The Energy Regulatory Commission (ERC) has set the offer price cap for the fourth green energy auction (GEA-4), setting the stage for the next wave of renewable investments.

In a resolution, the ERC approved the final GEA Reserve (GEAR) price for rooftop solar at P5.68 per kilowatt-hour, ground-mounted solar at P4.4832 per kWh, floating solar at P6.5258 per kWh, onshore wind at P6.0859 per kWh and integrated solar at P5.4028 per kWh.

Except for onshore wind, the GEAR prices for all technologies were notably higher than the initial rates proposed by the commission.

As the country’s energy regulator, the ERC determines the GEAR prices, or the maximum price offer for the renewable auction round.

In adopting the final rates, the commission said the decision was anchored on the “principle of efficiency and international benchmarks” to ensure that only efficient costs of the power plants are passed on to consumers.

“The ERC is mandated to protect the public interest… thus the need to exercise due diligence in setting the parameters and ultimately, the GEAR prices, while ensuring the continued viability of the renewable energy (RE) producers,” it said.

The issuance of the final GEAR prices has paved the way for the start of GEA-4, which involves over 9,300 megawatts of RE capacity and 1,100 MW of solar capacity paired with battery storage.

The auction is set on Sept. 2, while the issuance of the certificate of award to winning bidders is targeted as early as Nov. 24.

GEA-4, which marks the first auction round to integrate battery storage, “represents a major stride toward a more sustainable energy future for the Philippines,” the DOE said.