The Department of Energy (DOE) has raised the installation target for pumped-storage hydropower (PSH) projects to 4,250 megawatts (MW), which would take place in the third round of the green energy auction (GEA-3).
Philippine Star reported that this adjustment boosts the target from the original 4,000 MW to 4,250 MW as the country’s growing energy demand is projected to peak at 42.8 gigawatts (GW) by 2040, up from 16.6 GW in 2022.
The revised PSH capacity is reflected in the supplemental guidelines and updated terms of reference for GEA-3, which is set to take place this year.
Of the total target, 4,000 MW will be allocated across two lots in Luzon, while 250 MW will be designated for a lot in the Visayas, and these PSH projects are slated for completion between 2028 and 2035.
PSH technology works by pumping water from a lower reservoir to a higher one using electricity and later releasing it to generate power through turbines, the DOE explained.
To ensure grid reliability, the DOE requires PSH facilities participating in GEA-3 to use variable speed technology (VST), with bidders needing to submit supporting documents.
VST allows pump-turbine units to operate at adjustable speeds, unlike traditional fixed-speed systems, providing operational flexibility and efficiency for clean energy integration.
Bids lacking VST will be considered “not technically compliant” and will not be endorsed to the Energy Regulatory Commission, the DOE stated.
Aside from PSH, GEA-3 will offer 300 MW of impounding hydro, 100 MW of geothermal, and 75 MW of run-of-river (ROR) hydro technologies.
Among these, only ROR hydro qualifies for the feed-in tariff (FIT) system, which guarantees fixed payments for renewable energy (RE) sources.
Under the Philippine Energy Plan, the country targets increasing the share of renewables in its energy mix to 35% by 2030 and 50% by 2040.
Currently, RE contributes only 22% to the energy mix.
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