Philippines 2GW renewable energy auction to be held soon

A few days ago, the Philippine Energy Regulatory Commission (ERC) announced the maximum price for the upcoming 2GW renewable energy auction.

It is reported that at this auction, the price ceiling for photovoltaics was set at PHP 3.628/kWh, while the price ceiling for wind power was PHP 5.2887.

The ERC also stated that bids for biomass and river hydropower projects must not exceed PHP 5.548/kWh and PHP 5.8705/kWh, respectively. The ERC explained in a specific document that the PV price cap was set taking into account a PV capacity of 100MW and an installation cost of US$864.1 per kW.

In addition, the ERC makes an assumption that the plant will sell power through a 20-year power purchase agreement with a net capacity factor of 21.3% and an estimated annual operating and management cost of approximately $482,743.12. The LCOE is estimated to be around PHP 2.8075/kWh. The Philippine government hopes to reach an agreement through the upcoming procurement campaign to purchase 1,260MW of photovoltaic power, 380MW of wind power, 230MW of biomass power and 130MW of hydropower.

In terms of PV technology, Luzon province in the Philippines will receive about 900MW, while Visayas and Mindanao provinces are expected to receive 260MW and 100MW, respectively.