The Philippines’ Department of Energy hopes to allocate 1,260 MW of solar through the procurement exercise.

The Philippines’ Department of Energy has launched an auction to allocate 2 GW of renewable energy capacity.

Through the procurement exercise, the country’s authorities want to contract 1,260 MW of PV, 380 MW of wind power, 230 MW of biomass, and 130 MW of hydropower capacity.

As for the PV technology, around 900 MW should be assigned to the Luzon province, while the provinces of Visayas and Mindanao are expected to be awarded 260 and 100 MW, respectively.

The Philippines has an installed power generation capacity of around 20 GW, with 14.3 GW of it in the Luzon area, where the largest of the country’s three grids is located. The next two largest networks are in Visayas and Mindanao.

The Philippines government announced the plan to introduce the Green Energy Tariff Program auction in February 2020.

The auction will feature a maximum price for the renewable electricity generated by tendered projects and the program will be administered by the Philippines Department of Energy, according to a report published by the Institute for Energy Economics and Financial Analysis (IEEFA). Off-grid electrification projects will be included in the proposed tender system, the research institute added.

The country plans to install 15 GW of clean energy by 2030. Recent statistics released by the International Renewable Energy Agency show that the Philippines had an installed PV capacity of 1.04GW – driven by the country’s renewable energy law – at the end of 2020. Most of the nation’s solar facilities were secured under the old feed-in tariff regime, auctions, and net metering programs.