Electricity prices in the Philippines could fall below ₱1 per kilowatt-hour (kWh) by 2050 if all renewable energy (RE) projects under the Department of Energy’s (DOE) Green Energy Auction (GEA) Program are fully implemented, according to DOE undersecretary Rowena Cristina Guevara.
The projection is based on simulations by the Independent Electricity Market Operator of the Philippines (IEMOP), with Luzon potentially reaching ₱0.28/kWh, Visayas ₱0.48/kWh, and Mindanao ₱0.36/kWh.
Guevara presented the figures during a forum hosted by the Institute for Climate and Sustainable Cities, emphasizing the corporate and commercial impact of the auctions in driving down costs through competitive, fixed-rate bidding. Current GEA rounds could yield over 26,000 MW in renewable capacity, with GEA3 alone accepting 6,677 MW to be delivered between 2025 and 2035.
Key GEA3 awards include large-scale hydro and pumped-storage projects from Pan Pacific Renewable Power, Coheco Badeo Corp., Prime Infra affiliates, San Roque Hydropower Inc., and geothermal facilities from Energy Development Corp. and Bac-Man Geothermal Inc.
The DOE also announced a stakeholder dialogue on 30 June 2025, for GEA5 offshore wind rules, aiming to align regulatory and infrastructure plans with industry stakeholders and government agencies.
If realized, the auctions could significantly lower long-term energy costs and enhance investor confidence in the Philippines’ renewable energy sector.
