Philippines sets ceiling price of $0.069/kWh for upcoming renewables auction

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The Philippines' Energy Regulatory Commission (ERC) has published the ceiling prices for its upcoming 2GW auction for large-scale renewables. The cap price for PV technology was set at PHP3.628 ($0.069)/kWh, while that for wind power was assigned a ceiling rate of PHP5.2887.

Furthermore, the authority said that the offered price for biomass and run-of-river hydro projects must not exceed PHP5.548 and PHP5.8705/kWh, respectively.

In a specific document, the ERC explained that the cap price for solar was established considering an installed capacity of 100MW and installations costs of $864.1 per kW installed. The modeling also considered a 25-year lifetime of the facility and a construction time of 24 months.

Moreover, the regulator assumed the plant will sell power through a 20-year power purchase agreement and will have a net capacity factor of 21.3%. O&M costs were estimated at around $482,743.12 per year. The global levelized cost of energy (LCOE) of large scale solar was estimated at around PHP2.8075 ($0.053)/kWh.

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

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

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