The Department of Energy (DOE) is preparing two new rounds of the Green Energy Auction (GEA) to boost renewable energy use across the country.
Energy Undersecretary Rowena Cristina Guevara said the sixth round, GEA-6, will target 40 megawatts for cogeneration biomass projects and 120 megawatts for standalone biomass facilities. These plants run 24 hours a day using organic materials such as agricultural waste, wood chips, and manure. Cogeneration plants produce both electricity and usable heat, while standalone units generate power only. The delivery period is set from July 2027 to December 2030, with terms of reference to be released soon.
A separate auction will cover off-grid areas served by the National Power Corporation (NPC). These remote communities currently rely on diesel generators, where power costs average P18 per kilowatt-hour and can reach P62 per kWh in hard-to-reach islands—far higher than the P5 to P8 per kWh typical in grid-connected areas. These high costs are offset by the Universal Charge for Missionary Electrification (UCME), which collects P0.2662 per kWh from all grid users. The new auction aims to replace diesel plants with solar and battery systems to cut costs and improve supply reliability.
The first phase will cover 20 priority off-grid islands with a combined annual energy need of about 367,000 megawatt hours. The DOE recently held discussions with developers, local governments, NPC, and the Energy Regulatory Commission to plan the process. Under the GEA system, qualified developers compete to offer the lowest fixed power rates within set limits, with incentives tied to scheduled completion dates.
