The Department of Energy increased the installation target for pumped storage hydro (PSH) under the third round of the Green Energy Auction Program to 4,250 megawatts from 4,000 MW.
The DOE said in its supplement to the GEA-3 notice of auction and terms of reference dated Dec. 27, 2024 the PSH projects have a delivery period from 2028 to 2035, divided into three lots.
It said lot 1 involves 2,000 MW in the Luzon grid for delivery from 2028 to 2030, lot 2 also in Luzon grid at 2,000 MW from 2031 to 2032 and lot 3 in the Visays grid from 2031 to 2035.
The DOE said this is meant to facilitate immediate and timely investments in new or additional renewable energy capacities and promote the growth of the industry.
The DOE earlier said it was looking at auctioning 100 MW for geothermal projects for delivery in 2025 to 2027, 300 MW of impounding hydro for delivery from 2028 to 2030, 4,000 MW pumped storage hydro for 2028 to 2032 and 75 MW of run-of-river hydro for 2027 to 2029.
The total capacity involves 4,475 MW of new renewable energy capacity, covering both non-feed in tariff (FIT)-eligible and FIT-eligible technologies.
The DOE also said the PSH projects should utilize variable speed technology or VST. This is to ensure effective reliability services to the grid or distribution system.
“Bids that do not offer such technology for PSH facilities shall be deemed not technically compliant. Therefore, any bids that failed to satisfy this requirement shall not be endorsed to the Energy Regulatory Commission,” the DOE said.