The Department of Energy (DOE) will hold a special auction round in January 2026 dedicated to waste-to-energy (WTE) projects to expand renewable energy capacity while tackling solid waste management challenges in urban centers.

In a statement on Friday, the DOE said the upcoming auction will focus on projects that source waste feedstock from Metro Manila and other highly urbanized cities (HUCs), with completion targeted by the fourth quarter of 2027.

The agency said the Notice of Auction and Terms of Reference will be issued within the month. Interested bidders will be given ample time to comply with Green Energy Auction registration requirements ahead of the 2026 bidding.

A follow-up auction for biomass and WTE technologies covering projects nationwide is also planned for the second quarter of 2026.

“As an emerging renewable energy technology, WTE project development is one of the country’s strategies to address solid waste management, serve as flood control mitigation, and provide additional clean energy,” the DOE said.

Data from the National Solid Waste Management Commission show that Metro Manila and other HUCs generate around 6.12 million metric tons of municipal solid waste in 2024—equivalent to 335 megawatts of potential base load power.

Once implemented, the DOE said the WTE auction will help advance the government’s targets of increasing renewable energy’s share in the power mix to 35 percent by 2030 and 50 percent by 2040.