The Department of Energy (DOE) is exploring a special Green Energy Auction (GEA) round tailored to boost the country’s resilience against the severe effects of El Niño, Energy Secretary Sharon Garin confirmed on Monday. The proposed initiative would prioritize floating solar installations, which can also help reduce water loss from critical dams and reservoirs during periods of intense heat and drought.
Officials noted the government will identify suitable sites on properties managed by the National Power Corporation, as well as other reservoir areas where the National Irrigation Administration grants permission. Under the standard GEA framework, renewable energy developers compete for long-term power supply contracts by offering rates at or below ceilings set by the Energy Regulatory Commission. Successful projects are required to meet set completion timelines to keep their incentives, costs for which are shared across all grid-connected electricity consumers as part of their monthly bills.
This policy direction carries both near and long-term importance for households and businesses across the country. Beyond helping secure more clean energy capacity to ease supply pressures during weather-related crises, the broader GEA program is projected to bring substantial savings over time. Based on an analysis by the Independent Electricity Market Operator of the Philippines, power rates could fall to an average of just P0.28 per kilowatt-hour by 2050, down from the current average of P4.95 per kWh if all 22,420.4 megawatts of capacity awarded in the first five auction rounds are fully realized. Regional projections show Visayas rates dropping from roughly P5.28 per kWh this year to P0.48 per kWh by mid-century, while Mindanao’s average could decline from P4.06 to just P0.36 per kWh in the same period.
