ERC Sets Payment Guidelines for Green Energy Auction, Ensuring Timely RE Developer Compensation

ERC GEAP

The Energy Regulatory Commission (ERC) has issued formal guidelines for the collection and disbursement of the Green Energy Auction Allowance (GEA-All) Fund to ensure timely and transparent payments to renewable energy (RE) developers supplying power under the Green Energy Auction Program (GEAP).

Through Resolution No. 6, Series of 2025, the ERC has established a structured framework that defines how the GEA-All fund will be collected from consumers and distributed to RE suppliers. This fund, which will appear as a separate charge on electricity bills, is crucial in securing a stable payment system for RE producers participating in the auction program.

The GEA-All serves as a dedicated fund for paying renewable energy suppliers under GEAP, distinct from the Feed-in Tariff Allowance (FIT-All), which supports a separate RE incentive program. The ERC emphasized the importance of keeping GEA-All and FIT-All funds separate to ensure transparency and prevent misallocation of renewable energy payments.

The ERC also introduced a standardized Renewable Energy Payment Agreement (REPA) as part of the resolution. This ensures uniform contractual obligations between TransCo, which will administer the GEA-All Fund, and the RE developers receiving payments.

The Green Energy Auction Reserve (GEAR) Price, which acts as the price ceiling in GEAP bidding rounds, will continue to be determined by the ERC to ensure that auction prices remain competitive and beneficial to consumers. The ERC will also conduct periodic audits of the GEA-All Fund to ensure compliance with payment timelines and fund disbursement policies.

The ERC finalized these guidelines after extensive consultations with energy stakeholders across Luzon, Visayas, and Mindanao. The policy aims to create a more predictable and reliable financing structure for RE developers, encouraging more investments in clean energy projects.

For more details, the full resolution can be accessed at ERC Official Website.

How will these new ERC guidelines impact the growth of renewable energy in the Philippines? Share your thoughts below and follow Power Philippines for updates on energy policies.



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