The Department of Energy (DOE) has announced that the third round of the Green Energy Auction (GEA-3) has attracted 7,500 megawatts (MW) of renewable energy projects, significantly exceeding the 4,650-MW installation target. The auction, held on Tuesday, saw the submission of 14 projects with delivery timelines set between 2025 and 2035.
The DOE emphasized that this development aligns with the Philippine government’s long-term vision of transitioning toward a more sustainable energy sector. “This marks a significant step toward realizing the energy agenda of President Marcos to accelerate the country’s transition to renewable energy (RE) and attain energy security and reliability,” the DOE stated.
Hydropower Receives Strong Interest, Geothermal Lags Behind
The bidding process demonstrated a particularly strong investor interest in pumped-storage hydropower (PSH), which attracted 6,950 MW in project bids. This figure represents a 63.5% increase from the 4,250 MW initially allocated for the technology. PSH facilities serve as a vital energy storage solution, helping stabilize the grid and counterbalance the intermittency of renewable sources like solar and wind.
Currently, the Kalayaan 1 and 2 pumped-storage hydropower facilities in Laguna remain the only operational PSH plants in the country, with a combined capacity of over 300 MW. The increase in PSH project submissions signals a growing commitment to expanding energy storage solutions in the Philippines.
Additionally, the impounding hydropower segment was oversubscribed, with a total bid capacity of 550 MW, nearly double the 300-MW installation target. This indicates strong investor confidence in the role of hydropower in the country’s renewable energy mix.
On the other hand, geothermal energy underperformed in the auction, securing only 30.89 MW in bids—far below the 100-MW installation goal. This suggests challenges in attracting investment for geothermal development compared to other renewable technologies.
Next Steps in the Green Energy Auction Process
Following the auction, submitted bids will be ranked based on their offer price, from lowest to highest, with the selected projects stacked against their respective renewable energy technologies until the installation target is fully met.
The DOE plans to issue the notice of award as early as May, while the certificate of award is expected to be granted between June 6 and July 4. The successful projects will then move forward with development and eventual integration into the country’s power grid.
Government’s Push for Renewable Energy Expansion
GEA-3 is part of the Philippine government’s broader efforts to create a fair and competitive renewable energy market by ensuring transparency, innovation, and cost-effective deployment of clean energy solutions.
The previous Green Energy Auction (GEA-2), held in 2023, sought to allocate 11,600 MW of renewable energy capacity. However, it fell short of expectations, securing only 3,580.76 MW, leaving more than 8,000 MW unsubscribed. The significant oversubscription seen in the hydropower sector in GEA-3 indicates renewed investor enthusiasm in the country’s renewable energy market.
The Philippine Energy Plan outlines an ambitious goal of increasing the share of renewables in the country’s energy mix to 35% by 2030 and 50% by 2040, up from the current 22%. The government aims to scale up investments in various renewable energy sources to meet these targets and reduce reliance on fossil fuels.
The results of GEA-3 mark a notable step toward accelerating the country’s renewable energy transition, with pumped-storage and impounding hydropower emerging as key areas of interest. While challenges remain in geothermal energy development, the overall success of the auction underscores growing investor confidence in the Philippines’ clean energy future.
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