Third green auction spurs hydro surge

The Department of Energy (DOE) has awarded over 6,700 megawatts (MW) of potential new renewable energy capacity under the third Green Energy Auction (GEA-3), expanding the country’s clean energy pipeline and offering fresh momentum for stakeholders.

Based on the Notice of Award (NOA) released on Tuesday, the auction drew strong developer interest, particularly in pumped-storage hydropower (PSH), which accounted for the bulk of the capacity.

For PSH Lots 1 to 3, with delivery scheduled from 2028 to 2035, seven bids were submitted by Coheco Badeo Corp., Olympia Violago Water and Power, Inc., Ahunan Power Inc., Pan Pacific Renewable Power Phils. Corp., and San Roque Hydropower, Inc. Combined, their offers reached 6,350 MW, exceeding the DOE’s installation target of 4,250 MW.

Pan Pacific Renewable Power Phils. Corp. secured 300 MW of impounding hydropower capacity for delivery from 2028 to 2030. 

In the geothermal segment, Energy Development Corporation and Bac-Man Geothermal, Inc. submitted a combined 30.887 MW in capacity — falling short of the 100 MW target set for 2025–2027.

“This latest round under GEA-3 marks another significant milestone in the Philippine government’s effort to accelerate renewable energy development, enhance grid reliability, and meet long-term clean energy goals,” the DOE said.

The auction outcome follows a multi-agency review. The Green Energy Auction – Bids Evaluation and Awards Committee conducted technical and legal assessments of the February 11 submissions, followed by the Energy Regulatory Commission’s financial evaluation in April. Final bidder confirmations and eligibility vetting concluded in May.

The NOA imposes several conditions. Approved Green Energy Tariffs (GET) will apply under non-FIT rules, while PSH projects will be limited to actual offered capacity, excluding the additional 50 percent margin previously allowed. 

The DOE also canceled a prior advisory limiting post-20-year pricing to incremental costs, citing inconsistency with ERC’s Pricing Determination Mechanism Rules.

All potential winning bidders must confirm acceptance and submit post-auction requirements — such as a performance bond and an affidavit of undertaking—within 15 calendar days from the NOA’s publication. Non-compliance will result in the forfeiture of bid bonds.