Reserve prices set for 4th RE auction

The Energy Regulatory Commission (ERC) has dropped its preliminary verdict on reserve prices that will prospectively guide investors on forward decision whether or not to inject capital in the next wave of renewable energy (RE) capacities to be offered in the fourth Green Energy Auction (GEA-4) that the Department of Energy (DOE) will be administering this year.

- By MYRNA M. VELASCO

In a notice on Monday, April 14, the regulatory body relatively slashed the green energy auction reserve (GEAR) price for ground-mounted solar to P4.1480 per kilowatt hour (kWh), undercutting the last GEA-2 reserve price of 4.4043 per kWh.

Rooftop solar similarly took a cut, with GEA-4’s tariff slightly dipping to P4.7679 from P4.8738 per kWh—and that could tighten the screws on margins for prospective investors.

Conversely, floating solar initially secured the “sweet spot,” scoring a juicier 5.9515 per kWh, up from P5.3948 per kWh—the tariff scale then that generally scared off investors from submitting tenders in the last bidding. And in the forthcoming round, it remains to be seen if the final tariff to be prescribed by the ERC will serve as the bait that could hook serious capital from would-be floating solar investors.