Renewable energy auctions: Southeast Asia

RenewableenergyauctionsSoutheastAsia ©IRENA2022 Unlessotherwisestated,materialinthispublicationmaybefreelyused,shared,copied,reproduced,printedand/orstored,providedthatappropriateacknowledgementisgivenofIRENAasthesourceandcopyrightholder.Materialinthispublicationthatisattributedtothirdpartiesmaybesubjecttoseparatetermsofuseandrestrictions,andappropriatepermissionsfromthesethirdpartiesmayneedtobesecuredbeforeanyuseofsuchmaterial. ISBN:978-92-9260-484-4 Citation:IRENA(2022),Renewableenergyauctions:SoutheastAsia,InternationalRenewableEnergyAgency,AbuDhabi. AboutIRENA TheInternationalRenewableEnergyAgency(IRENA)isanintergovernmentalorganisationthatsupportscountriesintheirtransitiontoasustainableenergyfutureandservesastheprincipalplatformforinternationalco-operation,acentreofexcellence,andarepositoryofpolicy,technology,resourceandfinancialknowledgeonrenewableenergy.IRENApromotesthewidespreadadoptionandsustainableuseofallformsofrenewableenergy,includingbioenergy,geothermal,hydropower,ocean,solarandwindenergy,inthepursuitofsustainabledevelopment,energyaccess,energysecurityandlow-carboneconomicgrowthandprosperity.www.irena.org Acknowledgements ThisreportwasdevelopedundertheguidanceofRabiaFerroukhi(Director,IRENAKnowledge,PolicyandFinanceCentre)andUteCollier,andauthoredbyCarlosGuadarrama,AbdullahAbouAliandDialaHawila(IRENA),andAlexandreViana(consultant).ValuableexternalreviewwasprovidedbyMunlikaSompranonandSukanyaNanta(DepartmentofAlternativeEnergyDevelopmentandEfficiency,MinistryofEnergy,Thailand),GiangNgocHuongVu(ASEANCentreforEnergy)andtheRenewableEnergyManagementBureauoftheDepartmentofEnergy(Philippines).ValuablereviewandfeedbackwereprovidedbyIRENAcolleaguesBadariahYosiyana,NicholasWagnerandPaulKomor. IRENAisgratefultotheMinistryofEconomy,TradeandIndustryofJapanforsupportingthepublicationofthisreport. Forfurtherinformationortoprovidefeedback:publications@irena.org.Availablefordownload:www.irena.org/publications. Disclaimer Thispublicationandthematerialhereinareprovided“asis”.AllreasonableprecautionshavebeentakenbyIRENAtoverifythereliabilityofthematerialinthispublication.However,neitherIRENAnoranyofitsofficials,agents,dataorotherthird-partycontentprovidersprovidesawarrantyofanykind,eitherexpressedorimplied,andtheyacceptnoresponsibilityorliabilityforanyconsequenceofuseofthepublicationormaterialherein. TheinformationcontainedhereindoesnotnecessarilyrepresenttheviewsofallMembersofIRENA.ThementionofspecificcompaniesorcertainprojectsorproductsdoesnotimplythattheyareendorsedorrecommendedbyIRENAinpreferencetoothersofasimilarnaturethatarenotmentioned.ThedesignationsemployedandthepresentationofmaterialhereindonotimplytheexpressionofanyopiniononthepartofIRENAconcerningthelegalstatusofanyregion,country,territory,cityorareaorofitsauthorities,orconcerningthedelimitationoffrontiersorboundaries. CONTENTS Figures4 Tables4 Abbreviations5 2 1REGIONALCONTEXTFORRENEWABLEENERGYAUCTIONS6 RENEWABLEENERGYAUCTIONDESIGN12 2.1Auctiondemand13 2.2Qualificationrequirementsanddocumentation19 2.3Winnerselectionandcontractawardprocess23 2.4Riskallocationandremunerationofsellers28 3RENEWABLEENERGYAUCTIONRESULTS38 4CONCLUSIONS52 References55 FIGURES Figure1TheIRENAframeworkforauctiondesign13Figure2VolumesauctionedinSoutheastAsia,uptoJuly202216Figure3Auctionedcapacityperregioninthefourroundsoflarge-scalesolar (LLS)auctionsinMalaysia,dividedbyprojectsizelimit17 Figure4StructureofelectricitymarketsinSoutheastAsia28 Figure5ContractdurationsandleadtimesinSoutheastAsian renewableenergyauctions37Figure6Auctioned,participatedandawardedcapacityinMalaysianLSS40Figure7ParticipatingandawardedbidsinMalaysianLSS41 Figure8Projectsizeandbidpriceofparticipatingprojects inthefourroundsofLSS42 TABLES Table1VolumeauctionedinthePhilippinesin2022, bydemandband(technologyandregion)15 Table2DemandbandsinThailand’ssecondauction18 Table3Localcontentrequirementsforgeothermal andsolarPVinIndonesia21Table4Weightingscoreinthesecondstage,firstenvelope24Table5MeritScoreforLSSauction25Table6Bidbonds32Table7BondsforMalaysia’sfirsttwoLSSauctions33Table8GeothermalauctionsinIndonesia45Table9ResultsofThailand’sfirstbiogasauction47Table10ResultsofThailand’sfirstbiomassauction48Table11ResultsofThailand’ssecondauction49Table12ResultsofThailand’s‘EnergyforAll’auction50Table13ResultsofthePhilippines’firstGEAPauction51 ABBREVIATIONS AGPannualgenerationprofile(Malaysia) APAECASEANPlanofActionforEnergyCo-operation ASEANAssociationofSoutheastAsianNations BOIBoardofInvestment(Thailand) BOObuild,ownandoperateBOOTbuild,own,operate,transferBOTbuild-operate-transfer CODcommercialoperationdate DOEDepartmentofEnergy(thePhilippines) ECEnergyCommission(Malaysia) EDBEconomicDevelopmentBoard(Singapore) EDLLaoElectricity(ÉlectricitéduLaos) EERexcessenergyrate(Malaysia) EGATElectricityGeneratingAuthorityofThailandEPCengineering,procurement,andconstructionERCEnergyRegulatoryCommission (thePhilippines) ESSenergystoragesystem FiTfeed-intariff GEACGreenEnergyAuctionCommittee(thePhilippines) GETPAbbreviations