The Energy Regulatory Commission (ERC) has approved a benchmark price of P9.2959 per kilowatt-hour (kWh) for pioneer Waste-to-Energy (WTE) projects, setting the rate for the government’s planned auction of the technology.
The approved Green Energy Auction Reserve (GEAR) Price will serve as the benchmark for electricity generated from municipal waste and is expected to influence investment decisions ahead of the Department of Energy’s (DoE) upcoming auction.
The nearly P9.30/kWh rate reflects the high cost of developing and operating WTE facilities, including specialized combustion equipment, pollution-control systems, environmental monitoring and compliance with safety standards.
Commitment to support cleaner energy technologies
“The approval of the GEAR Price for Pioneer Waste-to-Energy Projects reflects the ERC’s commitment to support cleaner and more innovative energy technologies while protecting consumers.”
“These projects can help provide additional and dependable power supply while also helping local government units address growing waste management challenges,” ERC chairperson and CEO Atty. Francis Saturnino C. Juan said over the weekend.
“The ERC carefully studied the costs and long-term requirements of these projects to ensure that the approved rate remains fair, transparent and reflective of prudent and efficient costs,” he added.
The DoE has allocated 230 megawatts (MW) of WTE capacity for auction, with projects expected to begin operations between September 2028 and March 2029.
The ERC said the rate was set after consultations and a review of technical, financial, operational and environmental data from stakeholders in the energy and waste management sectors.
Household waste conversion through thermal combustion
Waste-to-Energy plants generate electricity by converting household garbage and other municipal solid waste through thermal combustion.
Under DoE rules, only facilities using municipal solid waste exclusively, without blending other fuels, will qualify.
The ERC said the projects could improve energy security by adding a dependable source of renewable power, reducing reliance on imported fuels and encouraging investment in waste management infrastructure.
