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Manila Bulletin devider Business devider Trade & Industry devider DOE targets Q4 gas bidding round as peak demand tests power capacity

DOE targets Q4 gas bidding round as peak demand tests power capacity

Published Jul 27, 2026 12:00 am  |  Updated Jul 26, 2026 06:11 am

The Department of Energy (DOE) is racing to complete its centralized auction for mid-merit natural gas, with the agency targeting the awarding of winning bidders in the fourth quarter of 2026.

Energy Secretary Sharon Garin said in an interview last week that the DOE is already working with the necessary stakeholders, as well as the Independent Electricity Market Operator of the Philippines (IEMOP), to auction natural gas assets that are either newly developed, upgraded, or already listed in the Wholesale Electricity Spot Market (WESM).

Once the Energy Regulatory Commission (ERC) determines the final threshold price, qualified bidders may submit their offer quantities and bid prices.

“We want to encourage more mid-merit capacity, [but it will be] gas-fired power plants. Why? Because it won’t break down... They react faster than coal-fired power plants,” Garin said, noting that the caveat is the more cost-intensive nature of natural gas compared to existing coal-fired power plants.

When asked about the expected capacity for the bidding process, she explained that mid-merit plants operate only when needed, particularly during periods of peak electricity demand.

Natural gas is considered a transition fuel that can help support variable renewable energy (RE) sources while maintaining grid stability.

Apart from gas, the DOE is also expediting RE developments.

This includes the eighth round of the Green Energy Auction (GEA-8), a special bidding process for RE projects in Mindanao. Its terms of reference (TOR) are scheduled for release next month.

Meanwhile, GEA-9, which is dedicated to solar-on-stilts and agrisolar projects, will begin its auction proper in the first quarter of 2027. A memorandum of agreement (MOA) with the Department of Agriculture (DA) is currently being finalized.

Garin explained that the next special auction category integrates agriculture, saying, “It takes a while because it’s new, so unlike [ground-mounted or rooftop solar] where it’s easier for the ERC and the DOE, agriculture has its own components… So we need a bit more time.”

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DOE AUCTION green energy auction (GEA)
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