World Bank tapped to help design offshore wind green energy auction

By Sheldeen Joy Talavera, Reporter

THE Department of Energy (DoE) said it has engaged the World Bank to help design the fifth round of the green energy auction (GEA-5) this year, which will focus on offshore wind (OSW) power projects.

“To mitigate risks and uncertainties associated with offshore wind technology, the DoE is collaborating with the World Bank Group for expert guidance and support. This collaborative approach ensures a well-structured and investor-friendly auction,” Energy Undersecretary Giovanni Carlo J. Bacordo said in an interview.

Mr. Bacordo said the department is finalizing the auction parameters including the specific OSW capacity and delivery commencement date.

“These details are being meticulously determined to align with the Philippine Energy Plan 2023-2050, and crucially, after thorough consultations with stakeholders regarding port and grid readiness,” he said.

While the capacities to be offered are still not set, the DoE is on track to launch GEA-5 by the third quarter, according to Energy Undersecretary Rowena Cristina L. Guevara.

“We are checking the transmission assets needed by the front runner OSW projects, as well as the potential port (to support) their construction,” she said.

Ms. Guevara said that the terms of reference for GEA-5 will be different from those of the previous auctions.

The DoE is currently assisting 16 OSW proponents who are projected to deliver more than 16 gigawatts (GW) of new capacity from offshore wind power projects.

GEA-5 is expected to facilitate market access for OSW developers, ensuring long-term demand for their generation capacities and keep them on track to generate the first kilowatts by 2028.

To date, the government has awarded 92 OSW contracts with a potential capacity of around 69 GW.

Mr. Bacordo said that the DoE and the Philippine Ports Authority (PPA) and the Department of Transportation (DoTr), are “actively progressing” on port repurposing.

He said that a memorandum of agreement is being finalized to clarify that the DoE will handle developer queuing, while PPA will manage port upgrades and tariffs.

“The DoE’s role in queuing OSW developers directly facilitates private sector participation in utilizing these soon to be developed ports,” he said.

Meanwhile, the DoTr is supporting OSW initiative through the Asian Development Bank’s Infrastructure Preparation and Innovation Facility (ADB-IPIF) for two ports.

“The Negros Occidental port is exploring ADB’s Project Readiness Fund (PRF) for detailed engineering design, and Southern Mindoro port will proceed under a design-build approach within the IPIF,” Mr. Bacordo said.

In other development, the Energy Regulatory Commission (ERC) has deferred some of the transmission projects of the National Grid Corp. of the Philippines (NGCP) as further deliberations are needed.

“Given the pending issues that needed to be addressed, the resolution of the matter was deferred for further deliberation with instructions/directives issued to the relevant units,” the ERC said in a notice.

Among the projects applied for by NGCP in 2021, those that are still pending approval are the P13.30-billion Nagsaag-Santiago 500-kilovolt (kV) Transmission Line Project, the P18.96-billion Western Luzon 500-kV Backbone Project Stage 2, the P6.83-billion Cabanatuan-Sampaloc-Nagsaag 230-kV Transmission Line Project, and the P2.39-billion Buang-La Trinidad 230-kV Transmission Line Upgrading Project.

The ERC has yet to decide on the P3.57-billion Nivel Hills 230-kV Substation Project in the Visayas.

In Mindanao, approvals are still being sought for the P610-million Agus 6-Kiwalan-Lugait 69-kV Transmission Line Upgrading Project, the P1.03-billion Maco-Tagum 69-kV Transmission Line Project, the P5.89-billion Sultan Kudarat-Tacurong 230-kV Transmission Line Project, and the P885.40-million Opol Substation Bus-In Project.

“We just need some items verified and updated because this set is tied to other ongoing projects. Then, it will be submitted for deliberation again,” ERC Chairperson Monalisa C. Dimalanta said when asked for further details on the deferral.