The government is set to offer over 2,000 megawatts of capacity in the seventh green energy auction round for solar and hydropower projects in Mindanao. This initiative aims to stimulate investments in the region, address growing energy demand, and promote a more balanced and resilient power system. The auction is expected to play a significant role in the country's efforts to increase its renewable energy share. The Department of Energy has outlined its plans in a draft terms of reference, which details the proposed capacity allocations.
The majority of the capacity, totaling 2,020 megawatts, will be allocated for solar energy projects over the next four years. Of this, 500 megawatts per year will be reserved for ground-mounted solar projects paired with battery energy storage systems. This requirement is expected to improve dispatch ability and address the intermittency of solar energy, supporting a more secure and flexible power system. Additionally, 5 megawatts will be allocated for rooftop solar installations, providing opportunities for smaller-scale projects.
In addition to solar energy, the Department of Energy is also targeting 120 megawatts of run-of-river hydro capacity, with a delivery period spanning 2028 to 2030. This will contribute to the overall goal of increasing the country's renewable energy capacity and reducing its reliance on non-renewable sources. The seventh green energy auction is part of a larger 10-year program that aims to offer at least 25 gigawatts of additional renewable energy capacity through annual competitive auctions.
The program is designed to support the country's national targets of achieving a 35% renewable energy share by 2030 and 50% by 2040. To facilitate the implementation of the seventh green energy auction, interested parties are invited to participate in a focus group discussion on the draft terms of reference and submit comments and recommendations. This will provide an opportunity for stakeholders to contribute to the development of the auction and ensure that it meets the needs of the region and the country as a whole.
