The Philippines’ Department of Energy has released the Terms of Reference (TOR) for the fourth round of the green energy auction (GEA-4). This auction round aims to add 9,378 MW of renewable energy capacity from ground-mounted, rooftop, and floating solar and onshore wind projects.

It is the first auction to incorporate renewable energy and energy storage systems (IRESS), with an additional 1,100 MW of solar capacity integrated with battery storage systems (BESS).

The successful bidders will receive long-term supply contracts of 20 years, starting from the commercial operation date of their respective projects. The auction capacity is distributed across Luzon, Visayas, and Mindanao, with specific targets set for each region between 2026 and 2029.

In 2026, the Philippines will add 2,372 MW of renewable energy capacity, including 1,040 MW in Luzon, 252 MW in Visayas, and 120 MW in Mindanao. This will include 50 MW of solar capacity paired with energy storage.

By 2027, the capacity target will be 2,362 MW, with Luzon accounting for 1,976 MW, Visayas 350 MW, and Mindanao 36 MW, along with an increase in solar plus storage capacity to 50-100 MW.

The 2028 target is 2,766 MW, comprising 2,025 MW in Luzon, 705 MW in Visayas, and 36 MW in Mindanao, with solar plus storage capacity reaching 100-150 MW. Capacity additions will continue in 2029, with further developments in solar and wind energy projects across all regions.

The DOE auction notice introduces updated Green Energy Auction Program (GEAP) guidelines, which include revised qualifications for eligible suppliers and a more structured pricing mechanism.

According to the guidelines, qualified suppliers must hold a renewable energy service contract or possess a certificate of authority issued under the Revised Omnibus RE Guidelines.

The green energy tariff for GEA projects will now be subject to indexation based on feed-in-tariff rules determined by the Energy Regulatory Commission.

Bidders must register with the DOE by submitting the documentation outlined in the TOR. The GEA Bids Evaluation and Awards Committee will review applications, and a list of qualified bidders will be published on the DOE website before the pre-bid conference.

For IRESS projects, only solar projects that are not yet commercially operational and do not hold a provisional authority to operate or certificate of compliance are eligible.

All IRESS projects must meet specific technical requirements, including an energy storage system inverter ratio of 0.2 relative to the registered solar capacity, a minimum round-trip efficiency of 85%, and a storage duration of at least four hours.

Registration for GEA-4 will commence one working day after the ERC publishes the green energy auction reserve price.

In 2023, the Philippines had awarded 3.43 GW of renewable energy projects in the green energy auction.

In the same year, it had awarded contracts for a 610 MW floating solar project.