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Manila Bulletin devider Business devider Trade & Industry devider DOE refines competitive bidding to revive stalled renewable projects

DOE refines competitive bidding to revive stalled renewable projects

Published Dec 3, 2025 04:47 pm  |  Updated Dec 3, 2025 04:38 pm
Energy Undersecretary Mylene Capongcol
Energy Undersecretary Mylene Capongcol
The Department of Energy (DOE) plans to attract more bidders for renewable energy (RE) service contracts (SCs) by reforming its competitive selection process.
Energy Undersecretary Mylene Capongcol said in an interview that the DOE will “retune” the current OCSP in an effort to secure more RE developments.
The DOE currently grants SCs through two methods: direct application or the Open and Competitive Selection Process (OCSP). The OCSP auctions off contracts for specific capacity or exploration rights to interested developers.
“We’re improving the system that undertakes OCSP... The sources of these bids are either from terminated, relinquished, or surrendered by other [energy] players,” she told reporters on the sidelines of the Philippine Energy Transition Dialogue 2025.
Capongcol noted that some terminated contracts stalled due to a lack of financial support or partnership.
“There are only a few bidders for the OCSP,” she added, explaining that the majority of developers opt for the direct application route.
The DOE is also reviewing an “alternative” method of awarding SCs.
“What’s good about the OCSP is that there’s already data for it,” Capongcol explained. “The concern is that some data are already outdated, so they still have to review… The ones that aren’t viable for developers may be viable [to others].”
She expressed optimism that “the new winner [of the service contract] can find the financial partner or funding for the project.”
While these contracts await new takers, the Philippines is behind on its target for renewable energy's share of the generation mix.
“Right now, based on the 2024 data, we’re still at 22 percent,” Capongcol shared. “But there are many ongoing RE projects as a result of the auction or distributed energy resources… Hopefully in time for the 2030 [goal] or earlier, we can come up with more firm numbers as to where we are.”
Capongcol noted that the DOE is still updating the National Renewable Energy Program (NREP) and expects more renewable capacity to come online following the recently concluded fourth Green Energy Auction (GEA-4).
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