DOE raises waste-to-energy auction capacity to 400 MW

The Department of Energy is expanding the capacity target for its Special Auction Round for Waste-to-Energy under the Green Energy Auction Program to 400 megawatts from the original 230 MW, a move aimed at drawing more investors into projects that can help address the country’s energy and solid waste challenges.

The DOE said the additional capacity will cover thermal combustion waste-to-energy projects, which convert municipal solid waste into electricity.

The agency said the higher installation target is intended to accelerate the deployment of waste-to-energy technologies while supporting the country’s clean energy transition and solid waste management objectives.

To give developers more time to prepare viable projects, the DOE will also revise key timelines for the auction.

Mechanical completion will be extended to December 2028, while the delivery commencement date will be moved to December 2029.

The DOE said the changes are meant to accommodate project development timelines, enhance investor confidence and ensure that participants can deliver financially viable and technically sound waste-to-energy projects.

The registration period for qualified suppliers will also be extended until July 31, 2026.

The DOE said registrants awarded with a Waste-to-Energy Operating Contract or Biomass Energy Operating Contract on or before the end of the registration period will be eligible to participate in the auction.

“With the extension of timelines and increase in capacity, the DOE aims to ensure the widest possible participation in the WTE auction, fostering competition and enabling the successful rollout of innovative waste-to-energy solutions,” the agency said.

The DOE will issue an amendment to Department Circular No. DC2026-04-0011 and the Supplemental Terms of Reference to reflect the revised capacity, extended timelines and other necessary adjustments to the auction parameters.

The circular amends the government’s framework for integrating waste-to-energy facilities into the country’s power generation mix under the Philippine Energy Plan 2023–2050, while providing incentives for pioneer waste-to-energy projects and supplementing the Green Energy Auction Program guidelines under Department Circular No. DC2021-11-0036.

The special auction builds on the DOE’s earlier plan to include waste-to-energy in the Green Energy Auction Program, which uses competitive bidding to procure renewable energy capacity. The DOE previously said Metro Manila and highly urbanized cities generated an estimated 6.12 million metric tons of municipal solid waste based on 2024 data from the National Solid Waste Management Commission, equivalent to about 335 MW of baseload power potential.

The auction also comes as the Energy Regulatory Commission has acted on pricing for pioneer biomass waste-to-energy projects, including a published proceeding on the Green Energy Auction Reserve Price for the technology.

Waste-to-energy remains a developing segment in the Philippine power mix, with policy discussions centered on how to balance renewable energy targets, local government waste disposal needs, project bankability and environmental safeguards.