Energy dep’t readies large-scale renewable energy auction

The Department of Energy (DoE) is set to offer a total of 10,478 megawatts (MW) of renewable energy (RE) capacity, which includes some that will be paired with battery energy storage systems (BESS), under the fourth round of the green energy auction (GEA-4) program.

The DoE is planning to auction off 3,940 MW of ground-mounted solar capacity, 48 MW of roof-mounted solar capacity, 3,000 MW of floating solar capacity, and 2,390 MW of onshore wind capacity, based on the notice of auction posted on its website.

The government will also offer integrated RE and energy storage system (IRESS) totaling 1,100 MW in solar generation capacity, along with undisclosed storage capacity.

A BESS is a type of energy storage system that uses batteries to store electrical energy from the grid and releases it when needed to augment supply or improve power quality.

The GEA program (GEAP) aims to promote RE as one of the country’s primary sources of energy through competitive selection. RE developers compete for incentivized fixed power rates by offering their lowest price for a certain capacity.

The DoE is targeting to install 7,523 MW in RE capacity in Luzon, 2,143 MW in Visayas, and 812 MW in Mindanao.

The projects resulting from the auction are scheduled to come online between 2026 and 2029. The supply contract for winning RE projects will be for 20 years, starting from the commercial operation date of the plant.

“The release of the TOR (terms of reference) for GEA-4 underscores the Philippines’ commitment to transitioning to clean energy while ensuring energy security. By ensuring a transparent and competitive selection process for renewable energy projects, we are accelerating the shift toward a more sustainable, secure, and resilient energy system,” Energy Undersecretary Rowena Cristina L. Guevara said in a statement.

The TOR sets out the technical, financial, and commercial requirements that will govern project selection, ensuring a transparent and competitive bidding process.

The DoE said that it will release updated GEAP guidelines to clarify the qualifications of eligible suppliers and ensure fair pricing mechanisms for projects under the program.

Under the new guidelines, qualified suppliers must either hold an RE service contract or possess a certificate of authority issued under the Revised Omnibus RE Guidelines.

“GEA-4 is expected to drive substantial investment in renewable energy, reinforcing its role as a key pillar of the Philippines’ energy transition,” the DoE said.

As a flagship government initiative, the program is seen to contribute to the country’s goal of achieving a 35% share in the power generation mix by 2030.

Asked to comment, Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said that offering such a large capacity in a single auction “sends a clear and strong message to investors about the Philippine government’s dedication to renewable energy development.”

“This large-scale opportunity could attract both local and international investments, showcasing the RE sector as a lucrative and stable avenue for growth,” Mr. Arce said in a Viber message.

“It further positions the country as a regional leader in green energy, potentially fostering long-term partnerships and technology transfer,” he added.

Last month, the DoE announced that GEA-3 attracted 7,500 MW worth of bids, exceeding the auction goal of 4,650 MW. The auction round covered pumped-storage hydro, impounding hydro, and geothermal.

An auction round dedicated to offshore wind projects is also set to launch in the third quarter of 2025, stepping up towards the Philippines’ goal to attain offshore wind power generation by 2028. – Sheldeen Joy Talavera, Reporter