THE Department of Energy (DoE) said the auction round for offshore wind projects has been delayed to the fourth quarter from the original third-quarter target.
Consultations are now ongoing regarding the terms of the fifth round of the green energy auction (GEA-5) program, Energy Undersecretary Mylene C. Capongcol added on the sidelines of the European Chamber of Commerce of the Philippines Energy Smart forum on Thursday.
GEA-5 will include fixed-bottom offshore wind technology, with an installation target of 3.3 gigawatts and a delivery period of between 2028 and 2030.
“For GEA-5, the target is within the year. The auction will be later this year. Once we issue the notice of auction, this will also include the Green Energy Auction Reserve (GEAR) price,” Ms. Capongcol said.
GEA-5 is expected to facilitate market access for offshore wind developers, ensuring long-term demand for their generation capacities.
She added that the power system will move towards decentralization, which an analyst said is better suited to the needs of an archipelagic country.
“We will support the energy decentralization and promote it. The department is working to improve the regulatory framework and encourage the growth of renewable energy,” she said.
Pedro H. Maniego, Jr., senior policy advisor of Institute for Climate and Sustainable Cities said decentralizing power generation and distribution are crucial for energy security due to the Philippines’ archipelagic nature.
Decentralization refers to a shift towards diverse energy sources and smaller-scale technologies that are more evenly distributed, as against large energy projects in limited locations.
The DoE reported a power generation mix of 63% coal-fired and 22% RE in 2023. The Philippines is aiming for a 35% RE share in the power mix by 2030, and 50% by 2040.
The DoE has called offshore wind vital to increasing the share of RE in the energy mix.
Ms. Capongcol expressed optimism about hydrogen exploration, with foreign companies signifying interest.
The DoE considers hydrogen a clean alternative fuel that can be used as an energy carrier to store, move, and deliver energy from other sources.
“Our study is ongoing for this. There are international companies interested,” she said.
In July, the DoE identified Zambales and Pangasinan as designated sites for possible hydrogen exploration. — Ashley Erika O. Jose
