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Manila Bulletin devider Business devider Trade & Industry devider DOE: New green energy auctions spark strong developer interest

DOE: New green energy auctions spark strong developer interest

Published May 25, 2026 12:01 am  |  Updated May 23, 2026 01:28 pm
The Department of Energy expects surge of private sector investment as it rolls out its initial auction for waste-to-energy projects, moving to alleviate an ongoing power crisis that has strained the country’s electrical grid.
The bidding round, designated as the sixth Green Energy Auction program, is the first time the government will allow renewable energy developers to bid specifically for biomass-fueled waste-to-energy capacity.
The DOE is deploying the competitive tender system to establish transparent pricing benchmarks while accelerating its long-term policy to reduce dependency on imported fossil fuels.
Energy Undersecretary Rowena Guevara said that the upcoming procurement rounds, scheduled to launch toward the close of the first half of 2026, have already attracted preliminary interest from commercial power producers.
The government plans to offer 230 megawatts of capacity under the program. Guevara indicated that investor appetite is poised to exceed that baseline figure.
The DOE is scheduled to release the official terms of reference and formal notice of auction for the tender within the coming days to initiate the bidding window.
Once the program formally opens, procurement will operate under a pay-as-bid system. Winning project developers must commit to achieving commercial operations within a strict two-year construction timeline. Successful bidders will be awarded 25-year power supply agreements to deliver electricity directly to the national grid. To mitigate raw material risks, developers will be required to form joint ventures with local government units to guarantee a steady supply of municipal solid waste feedstock.
The Energy Regulatory Commission earlier finalized the Green Energy Auction Reserve price for waste-to-energy technology at ₱8.0167 per kilowatt-hour, establishing the maximum tariff ceiling for the competitive bids.
Energy officials earlier identified five high-density urban areas as the primary candidate locations for the initial facilities, targeting an aggregate capacity of 120 megawatts to 135 megawatts. The agency earmarked Metro Manila, Bacolod, Cebu, Cagayan de Oro, and Davao as the focal points for development due to their high volumes of municipal waste and acute localized power requirements.
The waste-to-energy tender will be followed immediately by a seventh auction round in June, which will target rooftop, ground-mounted, and floating solar installations in the Mindanao region. Those solar developments will carry a regulatory mandate requiring the integration of Battery Energy Storage Systems to manage grid stability.
Energy Secretary Sharon Garin had stated that the successive bidding rounds scheduled for this year are critical to injecting much-needed capacity into the grid as national electricity consumption continues to climb.
The Philippines requires approximately 20 gigawatts of additional renewable energy capacity to meet its statutory target of a 50 percent clean energy mix by 2040.
The country's total operational renewable energy capacity stood at 10.7 gigawatts as of April 2026, according to data from the Independent Electricity Market Operator of the Philippines.

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