Philippines issues terms for renewables auction with storage

In July 2024, the Department of Energy (DOE) of the Philippines said its next renewable energy auction would focus strongly on integrating renewable energy and energy storage systems (IRESS). Initially, the auction was to be held in the final quarter of 2024, but the DOE is only getting around to outlining the details of the Green Energy Auction, (GEA-4), now. The GEA-4 is the Philippines fourth renewable energy auction, but the first to focus on IRESS.

Despite the delay, the government is staying true to its previous declaration to integrate storage into the country’s renewable energy transition. GEA-4 will add 9,378 MW of new capacity from ground-mounted solar, roof-mounted solar, floating solar, and onshore wind projects. Pairing solar plants with battery energy storage systems (BESS) will be the main strategic focus.

The Philippines is targeting an additional 1,100 MW of solar capacity equipped with energy storage under GEA-4. The solar and BESS projects are expected to enhance grid reliability and flexibility while supporting the country’s growing electricity demand. Each project must have a minimum storage duration of four hours to ensure sufficient grid support and energy reliability.

Announcing the details of the auction, Undersecretary Rowena Cristina L. Guevara said its IRESS focus “underscores the Philippines’ commitment to transitioning to clean energy while ensuring energy security.”

The auction covers installation targets from 2026 up until 2029. All IRESS projects must adhere to specific technical standards, which are outlined in the terms, announced yesterday (March 13). Projects must have an energy storage system inverter ratio of at least 0.2 relative to the registered solar capacity and a minimum round-trip efficiency of 85%, as specified by the manufacturer. Round-trip efficiency measures the ratio of energy output during discharge to energy input during charging.

Only solar facilities that are not yet commercially operational and do not have a Provisional Authority to Operate (PAO) or Certificate of Compliance (COC) can be registered to participate. However, existing solar facilities currently facing curtailed operations under their PAO/COC may also qualify.

Successful projects will win supply contracts for 20 years starting from the commercial operation date of the plant. Renewables suppliers who wish to participate in the GEA-4 are required to register with the DOE and submit documentation supporting their application. Their applications will be assessed by a committee and then a list of qualified bidders will be published on the DOE’s website before the pre-bid conference.

The Philippines is targeting 35% renewable energy capacity in its energy mix by the end of the decade. It is not the only country to delay energy storage auctions; in recent days Italy has also announced it would postpone its upcoming MACSE auction, due to happen in July, until September 30.