The Philippine Solar and Storage Energy Alliance (PSSEA) commissioned UK-based Mott Macdonald, a global consultancy firm, to conduct a study on the development costs of floating solar to help determine the appropriate reserve price for the upcoming Green Energy Auction (GEA).
The GEA reserve prices are the maximum price offers in peso per kilowatt-hour that will be used as the ceiling in the auction.
PSSEA chairperson Tetchi Cruz-Capellan said the results of the study would be presented to the Department of Energy (DOE) and the Energy Regulatory Commission (ERC) on Oct. 18 for the agencies to better understand the challenges of floating solar as a pioneering industry in the country.
“We commissioned a Mott MacDonald Study. The PSSEA commissioned a third-party international consulting firm to study everything about floating solar. Then they will show the costs so they [ERC] will be enlightened…Mott MacDonald’s will make a presentation to them about their findings. We are not. So, they can show that this is really the price,” Capellan said.
The DOE is looking to conduct GEAP 3 late this year, which involves the auction of geothermal, impounding and run-of-over hydro and pumped-storage hydro. It will also include run-of-river (ROR) hydro, which is a FIT-eligible RE technology.
The DOE is also hoping to pursue GEAP 4 this year, which would involve renewable energy plus energy storage systems.
The ERC pegged the GEAR of floating solar for P5.3948 per kWh during the GEAP 2 held last year. This was lower than PSSEA’s previous computation of P7.3661 per kWh.
Floating solar, where solar panels are placed on water, was expected to be a big deal during the auctions but only 90 MW was committed for completion in 2026 under GEAP 2.
“Unlike in ground-mounted solar panels, solar PV on water incurs additional costs in construction and operations, including but not limited to, installation of floaters, anchoring and mooring of the system. These systems are the unique features of the solar PV on water and are indispensable in keeping the solar PV on water in its place,” the PSSEA said in an earlier position paper sent to the ERC.
The group said floating solar incurs at least 20-percent higher project cost than ground-mounted solar due to different mounting solutions.
It said costs should also include logistics of bulky floats which need barges and other water transportation en route to the site.
The PSSEA said additional costs include water-resistant cables and wires to ensure safety measures and efficient operation.
