The Department of Energy (DOE) has officially released the Terms of Reference (TOR) for the fourth round of the Green Energy Auction (GEA-4), outlining the technical, financial, and commercial guidelines for the competitive bidding process. The initiative aims to accelerate the country’s renewable energy transition by adding 9,378 megawatts (MW) of new capacity from solar and wind projects.
A key highlight of GEA-4 is the integration of Renewable Energy and Energy Storage Systems (IRESS), marking the first auction to feature solar power plants paired with Battery Energy Storage Systems (BESS). With an additional 1,100 MW of solar capacity equipped with storage, the auction is expected to enhance grid stability and support rising electricity demand.
Auction Targets and Key Technologies
Under the DOE’s plan, the auction capacity is distributed across multiple renewable energy technologies, with staggered installation targets from 2026 to 2029. The breakdown includes:
- 2026: 2,744 MW across ground-mounted solar, roof-mounted solar, floating solar, and onshore wind, plus 200 MW of solar + ESS (IRESS)
- 2027: 2,362 MW from solar and wind projects, with 200 MW allocated for IRESS
- 2028: 2,766 MW, including 350 MW of solar + ESS
- 2029: 1,506 MW, with 350 MW for IRESS
The DOE has posted the Notice of Auction (NOA) effective from March 12, 2025, with timelines commencing upon the effectivity of Department Circular (DC) No. DC2025-03-004, which introduces updated Green Energy Auction Program (GEAP) guidelines.
New Guidelines and Tariff Mechanisms
Under the revised rules, qualified suppliers must hold a renewable energy service contract or a Certificate of Authority (COA) issued under the Revised Omnibus RE Guidelines. Additionally, the Green Energy Tariff (GET) for GEA projects will be subject to indexation, as determined by the Energy Regulatory Commission (ERC), ensuring fair pricing and market responsiveness.
The supply contracts for winning projects will have a 20-year duration starting from the commercial operation date.
Bidder Registration and Technical Compliance
Qualified renewable energy suppliers must register with the DOE by submitting the required documentation outlined in the TOR. The GEA Bids Evaluation and Awards Committee will review applications and release a list of eligible bidders before the pre-bid conference.
For IRESS projects, only non-operational solar facilities or those with curtailed operations under their existing Provisional Authority to Operate (PAO) or Certificate of Compliance (COC) may qualify. Technical requirements mandate a minimum storage duration of four hours, an ESS inverter ratio of at least 0.2, and a round-trip efficiency of 85% or higher.
The registration of qualified suppliers will commence one working day after the ERC publishes the Green Energy Auction Reserve (GEAR) Price.
Accelerating the Philippines’ Clean Energy Goals
GEA-4 is a cornerstone of the country’s strategy to achieve a 35% renewable energy share by 2030, reinforcing investor confidence in the clean energy sector. By providing long-term contracts and ensuring competitive selection, the auction is expected to drive substantial investment, contributing to a stable, sustainable, and greener power supply for the Philippines.
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