The Department of Energy (DOE) of the Philippines has issued the Terms of Reference (TOR) for the Green Energy Auction-4 (GEA-4) to support the country’s renewable energy expansion. The Green Energy Auction Program (GEAP) is designed to promote investment in renewable energy (RE) by facilitating a competitive bidding process. The fourth auction round aims to allocate capacity for various RE technologies, including ground-mounted, roof-mounted, and floating solar, onshore wind, and integrated solar with energy storage systems (IRESS).
The DOE has set installation targets for different regions from 2026 to 2029. In 2026, Luzon is expected to have 1,692 MW of RE installations, Visayas will have 462 MW, and Mindanao will have 120 MW. These targets will continue to increase each year, ensuring the steady development of renewable energy infrastructure. The supply delivery period for winning bidders will be 20 years, ensuring long-term stability in energy production.
To qualify for participation in the auction, RE developers must be registered with the DOE and comply with the Renewable Portfolio Standards (RPS) eligibility requirements. The auction is open to both new and existing RE facilities, provided they meet the specified conditions. Bidders must also submit bid bonds as a financial guarantee and comply with documentation requirements.
The auction process will be conducted through an electronic bidding platform. Bidders will submit their capacity and price offers, and the lowest bid prices will be prioritized until the installation target is met. In case of ties, earlier target supply dates or bid timestamps will be used as deciding factors. The government has also outlined specific provisions for bid evaluation, including ranking, validation, and awarding procedures.
Winning bidders will be issued a Certificate of Award (COA) and must submit post-auction documents, including a performance bond, to secure their commitments. Failure to comply with these requirements could result in disqualification and forfeiture of financial guarantees. Additionally, the DOE has provided mechanisms for addressing force majeure events, allowing affected bidders to request extensions or propose replacement RE facilities.
The Green Energy Auction aims to enhance the integration of renewable energy into the national grid while ensuring transparency and competitiveness. By encouraging investment in clean energy projects, the DOE hopes to accelerate the country’s transition toward sustainable energy sources. The implementation of the GEA-4 is expected to drive further growth in the renewable energy sector, contributing to national energy security and environmental sustainability.
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