THE Department of Energy (DOE) plans to auction 3,840 megawatts (MW) of mid-merit natural gas capacity to provide flexible power when renewable energy generation declines.
Mid-merit plants operate between baseload facilities that are running continuously, and peaking plants, which are dispatched during periods of high electricity demand. Their flexibility allows them to increase or reduce generation as supply and demand conditions change.
DOE Undersecretary Mario Marasigan said the capacity would be offered through separate auctions for existing and new gas-fired power plants, with auction activities expected to begin this year.
“This auction will serve a specific purpose, which is to support renewable energy generation,” Marasigan said in an online media briefing on Tuesday.
He pointed out that natural gas plants could quickly adjust their output to compensate for the intermittency of renewable energy sources such as solar and wind.
Under the DOE’s initial schedule, 1,400 MW of capacity from existing gas plants in Luzon will be offered to start this year. Another 500 MW in Luzon will be auctioned for operations in 2027.
For new facilities, the department plans to auction 440 MW of capacity in the Visayas for 2028.
A further 1,500 MW will be offered for 2031, consisting of 500 MW in the Visayas, and 1,000 MW in Luzon.
“Overall, we are looking at 3,840 megawatts of gas capacity to complement our renewables,” Marasigan said.
