DOE sets 400-MW waste-to-energy auction for October

The Department of Energy has scheduled the auction for 400 megawatts of waste-to-energy capacity on October 13, 2026, raising its installation target from the previous 230 MW.

The Special Auction Round under the Green Energy Auction Program could help divert residual waste from landfills and waterways while adding electricity to the grid, but its public benefit will depend on strict environmental safeguards and continued waste-reduction efforts.

Winning projects are expected to achieve mechanical completion by the end of 2028 and begin supplying electricity by the end of 2029.

The renewed push follows President Ferdinand R. Marcos Jr.’s call for better use of residual waste amid concerns that garbage accumulating in waterways contributes to flooding.

“The President has underscored the need for a more integrated approach to addressing our waste challenges. Waste that can no longer be reused or recycled should not simply end up in landfills or waterways. Subject to strict environmental safeguards, appropriate residual waste can be converted into useful energy and contribute to our power supply,” Energy Secretary Sharon S. Garin said.

The DOE views waste-to-energy facilities as an additional option for handling suitable residual waste that would otherwise require final disposal.

These facilities can produce electricity for the grid by converting the energy contained in qualified waste feedstock.

Metro Manila alone generates an estimated 9,000 metric tons of municipal solid waste each day.

The metropolis’ current waste stream could support about 200 MW of waste-to-energy capacity, subject to feedstock availability, suitability and other technical requirements, according to DOE estimates.

Developer interest has increased, with aggregate proposals approaching 400 MW and roughly matching the revised installation target.

The department stressed that proposed capacity would not automatically result in project awards.

“We are seeing significant interest from developers, but our objective is not simply to award capacity. We want projects that are technically sound, environmentally compliant, supported by sustainable feedstock, commercially viable, and capable of delivering electricity to the grid,” Garin said.

The DOE said waste-to-energy must complement rather than replace waste reduction, segregation, reuse, recycling and materials recovery.

This approach is consistent with the country’s ecological solid waste management framework under Republic Act No. 9003, which prioritizes segregation, recycling and resource recovery.

Only acceptable residual waste should be used as feedstock for the proposed facilities.

Projects must comply with applicable environmental laws, permitting requirements and emissions standards throughout their development and operation.

Department of Environment and Natural Resources Administrative Order No. 2019-21 provides the national guidelines governing the establishment and operation of waste-to-energy facilities for municipal solid waste, according to the Environmental Management Bureau.

The Philippine Clean Air Act also prohibits waste incineration that emits poisonous and toxic fumes while imposing standards intended to protect public health and air quality.

“We want these projects built, but we also want them built to the highest standards. WTE cannot solve one environmental problem by creating another,” Garin explained.

Waste-to-energy generation will remain private sector-led, with qualified proponents responsible for financing and developing facilities under the applicable market and auction framework.

The DOE continues to coordinate with other government agencies, local government units, developers and stakeholders on project eligibility, registration, feedstock requirements, technical standards and implementation arrangements.

The department will now focus on identifying projects that can satisfy technical and environmental standards, secure sustainable feedstock and proceed toward construction and electricity delivery.