The Philippine Competition Commission (PCC) has flagged competition risks in the design of earlier Green Energy Auction Program (GEAP) rounds, prompting the Department of Energy (DOE) to fine-tune its bidding framework as the government pushes to scale up renewable energy capacity.
The PCC said its Economics Office conducted a competition impact assessment (CIA) on key features of past auctions, including the segmentation of bids by island group, the use of representative power plants to set Green Energy Auction Reserve (GEAR) prices, and the publication of price caps alongside pre-bid conferences.
These design elements, the watchdog said, may have constrained bidder participation and increased the risk of coordinated behavior among participants.
The PCC stressed that auction structures should strike a balance between securing competitively priced power and expanding the country’s renewable energy mix. It recommended closer scrutiny of future auction designs to ensure they promote open, fair, and competitive participation, particularly as the sector attracts more players.
During a policy dialogue organized by the PCC, the DOE said it is continuously reviewing and refining GEAP rounds to address market feedback and encourage broader participation.
While the national grid is interconnected, the DOE noted that future auctions may still be conducted per island group to reflect local supply-demand conditions and reduce risks in power delivery.
The agency added that GEAR prices are set by the Energy Regulatory Commission based on technical studies and stakeholder consultations, but emphasized the need for transparency and flexibility as renewable technologies evolve and costs change.
The DOE reiterated that GEAP remains a central tool in achieving national renewable energy targets. Meanwhile, the PCC said its CIAs and policy dialogues aim to embed pro-competition safeguards in energy policy, in line with the National Competition Policy and long-term sector sustainability.
