In a continuing push to improve the power situation in off-grid communities, the Department of Energy (DOE) and the Asian Development Bank (ADB) are collaborating on a program to upgrade the off-grid systems of the National Power Corp. (NPC).

During the Asian Clean Energy Forum (ACEF), Energy Undersecretary Rowena Guevara noted the persistent issue of some remote areas relying heavily on diesel-based power.

“Off-grid areas, while representing only two percent of national demand, are overwhelmingly powered by imported oil— accounting for 85 percent of generation in these areas,” she said in her keynote speech.

“To address this, we are working with the [ADB] on a $461 million program to help the [NPC] hybridize off-grid systems and strengthen distribution lines, reducing dependence on imported fuels and lowering power costs,” she added.

While the government and the development bank are partnering to support NPC's hybridization funding, Guevara expressed optimism regarding the country’s renewable energy (RE) initiatives.

“On the brighter side, [RE] offers a promising pathway forward. RE resources are indigenous, environmentally sustainable, and more resilient against global market shocks… However, the share of variable renewables— solar and wind— is still low, at just over three percent. This means we have significant room for growth,” she said.

Furthermore, the DOE urged financial institutions to explore more deals that minimize reliance on long-term off-take agreements.

“This will mitigate stranded asset risks and aligns with our efforts to empower consumers through the Retail Competition and Open Access (RCOA) policy,” Guevara added.

In addition, the energy department is working to enhance the financial viability of market platforms, such as the Wholesale Electricity Spot Market (WESM).

“You know, we need to build smart. Since we’re installing electricity, let’s at least make it renewable, not diesel.”

GEA Updates

As renewable investments continue to gain traction, Guevara informed reporters that the DOE is set to announce the winning bidders of the third round of the Green Energy Auction (GEA-3) next week.

“Hopefully by Monday, but we can’t say [how many bidders],” she mentioned in a brief interview.

To recap, GEA-3 involves the auctioning of various green capacities, including 4,000 megawatts (MW) of pumped storage, 300 MW of impounding hydropower, 100 MW of geothermal, and 75 MW of run-of-river hydropower.

The bidders were previously announced last January.

With GEA-5 anticipated to commence in the third quarter of 2025, Guevara shared that they are awaiting the go-ahead to publish the necessary bidding information.

GEA-5 is dedicated to offshore wind developments, as the government anticipates their generation by 2028.

“Actually, we’re done [already]. We’re about to hold a public consultation [this month],” she said. “We finished the terms of reference and the notice of auction; we’re just waiting for clearance.”