The Energy Regulatory Commission (ERC) and the Department of Energy (DOE) have introduced new terms and an upcoming special auction to attract more investments in waste-to-energy (WTE) projects under the Green Energy Auction (GEA) program, aiming to boost clean power supply and improve national waste management.
In a resolution dated May 13, 2026 and released recently, the ERC set a fixed benchmark rate of P9.2959 per kilowatt-hour for new pioneer biomass WTE facilities. Developers will compete by offering rates at or below this price to qualify for long-term incentives, which are funded through a small portion of monthly electricity bills paid by all grid-connected consumers. The current auction round targets 230 megawatts (MW) of new WTE capacity.
Separately, the DOE announced that supplier registration starts May 25, 2026. A pre-bid meeting is scheduled for July 21, with the actual auction set for August 7. Winning projects must be completed and operational between September 2028 and March 2029.
This push is a major step toward solving two key national issues: energy security and waste disposal. Currently, the country has only 7 MW of installed WTE capacity—less than 0.03 percent of total power supply—compared to 561 MW from traditional biomass sources. The government expects strong interest, with proposed capacities already likely exceeding the 230 MW target.
Once built, these facilities will turn non-recyclable waste into electricity, cut reliance on landfills, reduce methane emissions from rotting garbage, and expand renewable energy use. It also ensures transparent procurement of technology that meets environmental standards, supporting the country’s shift to sustainable energy and better waste management.
