The Department of Energy (DOE) on Monday said 75 megawatts (MW) of run-of-river hydro projects will no longer be included in the upcoming third round of the Green Energy Auction (GEA-3). According to the DOE, the decision arose from the fact that the technology still holds unsubscribed capacities under the government’s feed-in-tariff mechanism, which offers incentives through a separate program.
The DOE confirmed the GEA-3 auction will proceed next month, with an updated target of 4,650 MW in new renewable energy (RE) capacity. Key auction highlights include 300 MW set aside for impounding hydro projects across the country, expected to be operational by 2028 to 2030, and 100 MW of geothermal projects, slated to begin operations between 2023 and 2027.
The largest portion of the auction—4,250 MW—will focus on pumped-storage hydro (PSH) projects. The PSH allocations are split into two blocks: 2,000 MW in Luzon, which must be operational between 2028 and 2030, and another 2,000 MW also in Luzon, set to go live between 2031 and 2032. An additional 250 MW of PSH capacity will be auctioned for Mindanao, with a completion window from 2031 to 2035.
“The majority of the capacity in GEA-3 will come from PSH, supporting the integration of renewable energy into the national grid, improving grid stability, and ensuring a more sustainable energy future,” the DOE said. The auction will also ensure a transparent and competitive selection process, with renewable energy producers competing for fixed power rates that must meet or fall below the reserve prices set by the Energy Regulatory Commission.
The GEA-3 auction is a key step toward accelerating the country’s renewable energy goals, and the DOE is confident it will attract competitive bids, further contributing to the country’s clean energy transition.
