Policymakers Urged to Finalize Green Energy Auction Pricing for Renewable Investments

Industry stakeholders are calling for the swift finalization of pricing mechanisms for the third Green Energy Auction (GEA) in the Philippines to enable the program’s implementation within the year. Senator Pia Cayetano emphasized the urgency of this move, highlighting its importance in advancing renewable energy transitions. The statement was made during a Senate hearing on the Department of Energy’s (DOE) proposed 2025 budget, attended by Energy Secretary Raphael Lotilla and ERC Chief Jesse Hermogenes Andres.

Energy Undersecretary Rowena Guevara confirmed that the DOE is committed to completing the GEA-3 by year’s end. This phase is expected to introduce over 3,000 MW from pumped-storage hydro over the next five years. However, before the auction can proceed, the Energy Regulatory Commission (ERC) must release the Green Energy Auction Reserve (GEAR) prices, which set the maximum bid rates for the auction.

Senator Cayetano noted strong investor interest in GEA-3, which will cover non-feed-in-tariff (Non-FIT) technologies such as geothermal and pumped-storage hydro, per DOE guidelines. The initiative, since its inception, has already secured commitments for 5,306 MW of renewable energy for delivery from 2024 to 2026.