DOE Awards 6,000+ MW in Green Energy Auction 3

The Department of Energy (DOE) has awarded over 6,000 megawatts (MW) in renewable energy projects under the third round of the Green Energy Auction (GEA-3), marking a major milestone in the Philippines’ clean energy transition.

The Notice of Award (NOA), released on June 10, 2025, identifies potential winning bidders, their proposed capacities, and the Energy Regulatory Commission’s (ERC) recommended rates under the non-FIT Green Energy Tariff (GET) scheme.

The GEA-3 covered three major renewable energy technologies: impounding hydropower, pumped-storage hydropower (PSH), and geothermal energy.

For impounding hydropower, the DOE awarded a total installation target of 300 MW for delivery between 2028 and 2030 to Pan Pacific Renewable Power Phils. Corp., which submitted two successful bids.

Pumped-storage hydropower accounted for the largest share of awarded capacity, with a combined installation target of 4,250 MW and delivery commencement periods ranging from 2028 to 2035.

Seven bids totaling 6,350 MW of offered capacity were considered from Coheco Badeo Corporation, Olympia Violago Water and Power, Inc., Ahunan Power Inc., Pan Pacific Renewable Power Phils. Corp., and San Roque Hydropower, Inc.

For geothermal energy, three bids amounting to 30.887 MW were submitted by Energy Development Corporation and Bac-Man Geothermal, Inc. toward a 100 MW installation target set for 2025 to 2027.

The auction process involved multiple levels of evaluation, starting with the Green Energy Auction – Bids Evaluation and Awards Committee (GEA-BEAC), which conducted legal and technical assessments of submissions from qualified bidders on February 11, 2025.

These assessments led to the endorsement of eligible price offers to the ERC on February 20, followed by financial evaluations and final coordination with the DOE through April and May.

The NOA contains key provisions affecting tariff eligibility and project structure, including the non-applicability of PSH capacity surplus margins under ERC’s Pricing Determination Mechanism (PDM) rules.

Specifically, only the actual offered capacity — excluding the 50% excess — will be eligible for the approved GET rate for pumped-storage hydropower.

The DOE also canceled an earlier advisory from December 2024 that would have limited post-20-year pricing to incremental costs, aligning the auction framework with current ERC guidelines.

All potential awardees must confirm acceptance and submit post-auction documents within 15 calendar days from publication of the NOA.

These documents include the original affidavit of undertaking and a performance bond.

Failure to comply will result in the forfeiture of their bid bond.

The DOE views GEA-3 as a crucial mechanism to boost investment in renewable energy, improve national energy security, and meet long-term climate goals.

The initiative supports the Philippines’ commitment to increasing renewable energy’s share to 35% of the power mix by 2030 and 50% by 2040, in line with the country’s energy transition roadmap.