Philippines Amends Green Energy Auction Guidelines To Boost Renewable Investments

The Department of Energy (DOE) of the Philippines has introduced amendments to the Green Energy Auction Program (GEAP) Guidelines to enhance the competitive selection of renewable energy (RE) facilities eligible for the Feed-In Tariff Allowance (FIT-All) Fund. The original GEAP Guidelines, issued in November 2021, established a mechanism where selected RE facilities receive a fixed tariff based on the winning bid price in the Green Energy Auction, known as the Green Energy Tariff (GET). The recent amendments aim to clarify and align certain provisions with existing regulatory frameworks and introduce new qualifications for participation.

One of the key updates in the amendment includes a clarification on indexation under the Energy Regulatory Commission’s (ERC) Resolution No. 16, Series of 2010. The amendment ensures that GET prices will be periodically adjusted based on the indexation method determined by the ERC, allowing for fair and transparent pricing adjustments over time. Additionally, the DOE has aligned the GEAP Guidelines with the Revised Omnibus Guidelines on Renewable Energy Contracts, effective June 2024. Under this framework, RE developers now have the option to obtain a Certificate of Authority (COA) before finalizing their RE contracts. The COA grants RE developers permission to secure necessary permits and conduct pre-feasibility studies, enabling them to move forward with project preparations before entering into a formal contract.

To facilitate greater participation in the GEAP, the definition of “Qualified Suppliers” has been expanded. Previously, only RE developers and generators registered under the Omnibus RE Guidelines could participate in the auctions. With the new amendment, developers holding a COA are also eligible, thereby broadening the pool of potential bidders and encouraging more competition in renewable energy procurement.

Another significant revision pertains to the adoption of the FIT regulatory framework within the GEAP. While the auction process remains distinct, the DOE has confirmed that the FIT Rules established by the ERC will continue to apply, ensuring consistency in regulatory oversight. The amendments also reaffirm that entities responsible for implementing FIT will maintain their roles in administering each auction round.

The circular further includes provisions on the validity and implementation of the changes. It specifies that any conflicting previous regulations will be repealed or modified accordingly. The amendments will take effect 15 days after their publication in at least two widely circulated newspapers and will remain in force until further notice.

By making these modifications, the DOE aims to enhance the effectiveness and transparency of the Green Energy Auction Program, streamline regulatory processes, and attract more investors to the country’s renewable energy sector. These steps align with the Philippines’ commitment to expanding its clean energy capacity and achieving long-term sustainability goals.