The Department of Energy has released the terms of reference for the seventh round of the Green Energy Auction, which will prioritize renewable energy projects in Mindanao. Eligible technologies for this auction include ground-mounted solar paired with battery storage, rooftop solar systems, and run-of-river hydropower facilities. Under the auction program, developers compete for guaranteed fixed power rates by submitting offers that are at or below reserve prices set by the Energy Regulatory Commission, with these incentives funded through a small portion of monthly electricity bills paid by all grid-connected users. Qualifying projects must meet set completion deadlines to keep their awarded benefits.
The new guidelines set clear capacity targets from 2027 to 2030, requiring 500 megawatts of ground-mounted solar with battery storage and 5 megawatts of rooftop solar to be finished each year, while the full 120-megawatt run-of-river hydropower allocation must be completed between 2028 and 2030. A virtual pre-bid meeting will be held to help interested developers prepare their submissions.
Previous auction rounds have already drawn strong interest, with the first five rounds drawing a combined total of 22,420.4 megawatts in proposed capacity since the program launched in mid-2022. The first round drew nearly 2,000 megawatts, followed by over 3,500 megawatts in the second round, more than 6,600 megawatts in the third, and over 10,000 megawatts in the fourth. The fifth round, which was set to focus on up to 3,300 megawatts of fixed-bottom offshore wind projects, is currently suspended.
Energy officials have noted that meeting all capacity commitments from the first five rounds could bring average electricity rates down to less than one peso per kilowatt hour by 2050. Based on projections from the Independent Electricity Market Operator of the Philippines, national average rates could drop from around P4.95 per kilowatt hour now to just P0.28 per kilowatt hour by that year. Visayas rates are estimated to fall from P5.28 this year to P0.48, while Mindanao rates could go from P4.06 to P0.36 per kilowatt hour over the same period.
