Geothermal power firms seek auction pricing revamp

The National Geothermal Association of the Philippines (NGAP) is advocating for a revamp of the auction pricing mechanism for geothermal projects in the country. This push comes in the wake of the low participation in the previous government auction (GEA-3), where only approximately 30.9 megawatts of the 100 MW offered were subscribed.

NGAP president Jaime Jemuel Austria argues that the current pricing methodology does not accurately reflect the varying costs associated with geothermal development, urging for a more site-specific approach. Factors such as terrain and access road requirements can significantly impact the true cost of geothermal projects, and these should be factored into the pricing methodology.

The NGAP is convening its technical working group to identify areas for improvement in the GEA framework and to strengthen industry participation in future auctions. This comes as the Department of Energy (DOE) is expected to carry over the unsubscribed GEA-3 capacity to the upcoming GEA-9, part of the agency's 10-year plan to add 25 gigawatts of renewable energy capacity by 2035.

The Philippines, a leading geothermal producer, currently has around 2,100 MW of untapped potential, which unlocking would require an estimated $12.6 billion investment.

Brief written by urgent.news from Philippine Star Business's own syndicated text. Machine-written — may contain errors; check the original before relying on it.