Philippines ups pumped hydro procurement target to 4,250 MW

The Philippines’ Department of Energy (DoE) has increased the installation target for pumped hydro storage from 4,000 MW to 4,250 MW as part of the third round of the country’s Green Energy Auction (GEA-3).

In a notice issued on December 24, 2024, the DoE said that this increase in installation target will help ensure that the country’s expected peak demand of 42.8 GW in 2040 is met.

The document specifies that Lot 1 procures 2 GW of pumped hydro storage, which should be delivered on the country’s largest and most populous island, Luzon, in the period between 2028-2030. Lot 2 is seeking to add 2 GW also in Luzon in 2031-2032. Another 250 MW is procured in Lot 3 and shall be delivered in the Visayas region in 2031-2035.

The document specifies that proposed projects must utilize variable speed technology, noting that all other bids shall be deemed “not technically compliant.”

Variable speed technology in pumped hydro storage projects refers to the use of adjustable-speed pump-turbine units instead of traditional fixed-speed units. This technology allows the speed of the pump-turbine to be varied through a frequency converter, enhancing the operational flexibility and efficiency of pumped storage.

Both projects eligible for feed-in tariffs and those which are not, including pumped hydro storage, under the GEA-3 will be awarded 20-year supply contracts starting from the commercial operation date.

Last year, the Philippines’ DoE launched the GEA-3 procurement exercise, inviting developers to participate in securing 4,475 MW of new renewable energy capacity. With pumped hydro accounting for the lion’s share of the installation target, the GEA-3 is also procuring 100 MW of geothermal capacity, 300 MW of impounding hydropower, and 75 MW of run-of-river hydro.

Previously, the DOE had conducted two auctions which generated a total of 5,306 MW of renewables capacities committed to join the grid in 2024-2026.

In May 2024, the DOE released figures projecting that the Philippines was on track to install nearly 2 GW of additional solar capacity for the year, alongside 590 MW of battery energy storage. At the time the figures were released, 32.42 MW of the 590 MW was in operation.

In terms of pumped hydro deployment, the Philippines has been leading the charge in Southeast Asia, alongside Thailand. Norwegian consultancy Rystad Energy released projections mid last year that the Philippines would soon surpass Thailand and emerge as the region’s leader with about 5.7 GW of pumped hydro capacity in its pipeline.