The Department of Energy (DOE) has declared the third Green Energy Auction (GEA-3) a success, as bids from renewable energy developers exceeded 7,500 megawatts (MW)—far surpassing the 4,650 MW installation target. The overwhelming response underscores investor confidence in the country’s clean energy transition and the growing role of pumped-storage hydro (PSH) as a key energy storage solution to ensure grid stability and energy security.
A GEA is a competitive bidding process where renewable energy developers submit offers to supply power at the lowest possible price. It is designed to support the transition to cleaner energy sources while ensuring competitive electricity rates for consumers.
DOE reported that the total offered capacity for GEA-3 not only met but significantly exceeded the government’s initial target, with strong interest in hydropower and geothermal projects. The auction covered impounding hydro, pumped-storage hydro (PSH), and geothermal energy, aligning with President Ferdinand Marcos Jr.’s energy agenda to increase the share of renewables in the country’s power mix.
“This marks a significant step towards realizing the energy agenda of President Ferdinand Marcos Jr. to accelerate the country’s transition to renewable energy, and attain energy security and reliability,” the DOE stated.
According to the DOE, pumped-storage hydro (PSH) played a crucial role in the auction, drawing bids far exceeding the government’s original targets. The PSH projects in Luzon (Lot 1 and Lot 2) attracted a combined offer of 6,700 MW, significantly higher than the 4,000 MW installation target. In the Visayas (Lot 3), PSH projects received offers matching the 250 MW target, further reinforcing the importance of energy storage in balancing variable renewable energy (VRE) sources like solar and wind.
Unlike wind and solar, which depend on weather conditions, PSH can store excess energy and release it when needed, improving grid stability. This makes PSH an ideal backup power source to balance variable renewable energy (VRE) sources.
Currently, the country has only one PSH facility—the government-owned Kalayaan 1 and 2 plants in Laguna, with a total capacity of over 300 MW. The results of GEA-3 signal increased private sector interest in expanding PSH infrastructure, which will help address supply-demand fluctuations and grid intermittency.
A total of 14 projects with a delivery period spanning 2025 to 2035 participated in the auction, with bids ranked from lowest to highest price. The DOE will publish the final list of winning bidders on its website once the Energy Regulatory Commission (ERC) completes its review of the price offers.
The Certificate of Award will be issued to the winning bidders once they submit the required post-auction documents, as mandated under Section 9 of the Terms of Reference. The GEA-Bids Evaluation and Awards Committee will then affirm the results, officially advancing the next phase of the Philippines’ renewable energy expansion efforts.
The success of GEA-3 highlights the growing investor confidence in the Philippine renewable energy market, as the country moves toward its goal of 35% renewable energy by 2030 and 50% by 2040. DOE believes that with continued private sector participation and government support, the Philippines is on track to secure a sustainable, reliable, and cost-effective energy future.
What are your thoughts on the record-breaking participation in the Green Energy Auction (GEA-3)? Do you think pumped-storage hydro (PSH) will play a crucial role in stabilizing the country’s renewable energy transition? Share your insights in the comments below, and follow Power Philippines for the latest updates on energy development.
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