Manila, March 12, 2025 – The Philippines’ Department of Energy (DOE) has officially released the Terms of Reference (TOR) for the fourth round of the Green Energy Auction (GEA-4), marking a significant step towards accelerating the country’s renewable energy transition. For the first time, the auction will integrate Renewable Energy and Energy Storage Systems (IRESS), allowing solar power plants paired with Battery Energy Storage Systems (BESS) to participate.
GEA-4 targets the addition of 9,378 megawatts (MW) of new renewable energy capacity by 2029 from ground-mounted, roof-mounted, and floating solar, as well as onshore wind projects. Notably, the auction includes 1,100 MW of solar capacity combined with energy storage, enhancing grid reliability and supporting the country’s growing electricity demand.
According to DOE Undersecretary Rowena Cristina L. Guevara, “The release of the TOR for GEA-4 underscores the Philippines’ commitment to transitioning to clean energy while ensuring energy security. By ensuring a transparent and competitive selection process for renewable energy projects, we are accelerating the shift toward a more sustainable, secure, and resilient energy system.”
The auction specifies annual installation targets from 2026 to 2029, with distinct quotas for Luzon, Visayas, and Mindanao. For instance, in 2026, the auction aims to install 2,744 MW across these regions, including 200 MW of solar-plus-storage projects. By 2029, the total targeted capacity will reach 1,506 MW, with 350 MW dedicated to solar-plus-storage.
To qualify for GEA-4, renewable energy suppliers must hold a renewable energy service contract or a Certificate of Authority (COA) under the Revised Omnibus Renewable Energy Guidelines. Furthermore, energy storage projects must meet stringent technical standards, including an inverter ratio of at least 0.2 relative to registered solar capacity, a minimum round-trip efficiency of 85%, and a storage duration of at least four hours.
The Green Energy Tariff (GET) for auctioned projects will be subject to indexation based on Feed-in-Tariff (FIT) rules, ensuring fair and transparent pricing. Winning projects will receive 20-year supply contracts commencing from their commercial operation date (COD).
GEA-4 registration will open one working day after the Energy Regulatory Commission (ERC) publishes the Green Energy Auction Reserve (GEAR) Price. The DOE anticipates that this auction will drive substantial investment in renewable energy, aligning with the government’s target of achieving a 35% renewable share in the national energy mix by 2030.
Source: Philippines Department of Energy (DOE) – Green Energy Auction 4 Announcement, March 12, 2025.
