The Department of Energy (DOE) is projecting a significant decline in electricity prices across Luzon, Visayas, and Mindanao by 2050, driven by the completion of projects under the Green Energy Auction Program (GEA).

Speaking at a recent forum, DOE Undersecretary Rowena Guevara said the agency asked the Independent Electricity Market Operator of the Philippines (IEMOP) to simulate electricity price trajectories once all projects under GEA rounds 1 to 5 are operational.

“So we asked the IEMOP, the market operator, to do a simulation of prices of electricity until 2050 if all the green energy auctions number one to five come online,” Guevara said.

“This is the number that we got. From 2026, Luzon, for example, on the average will be P4.95 per kWh. By 2050, it will be P0.28 per kWh,” she said.

“Visayas will go from about P5.28 per kWh in 2026 to P0.48 per kWh by 2050. And lastly, Mindanao is at P4.06 and it will go down to P0.36 per kWh by 2050,” she added.

Guevara cited global trends as supporting evidence: “In four years’ time, that GBP 120 pounds track for difference went down to GBP 42,” referring to the UK’s offshore wind investments.

“So the initial investment for new technologies might sound very high, but eventually it goes down. And we already asked for IEMOP to do the simulation because we want to make sure that our consumers are protected,” she said.

The DOE also confirmed that awardees under the third round of the Green Energy Auction (GEA-3) accepted offers for a total capacity of 6,677.218 MW, scheduled for delivery between 2025 and 2035.

Among the confirmed awardees are:

• Pan Pacific Renewable Power Phils. Corp.: Three hydroelectric power projects in Apayao – 150 MW Gened 1, 150 MW Gened 2 (both impounding HPPs), and the 2,000 MW Maton Pumped-Storage HPP.
  
• Coheco Badeo Corporation: 500 MW Kibungan Pumped-Storage HPP in Benguet.
  
• Olympia Violago Water and Power, Inc. and Ahunan Power, Inc. (affiliates of Prime Infra): 600 MW Wawa Pumped-Storage 1 HPP in Rizal and 1,400 MW Pakil Pumped-Storage HPP in Laguna, respectively.
  
• San Roque Hydropower, Inc. (San Miguel Group affiliate): 800 MW San Roque Lower East and 800 MW San Roque West Pumped-Storage HPPs in Benguet, and 250 MW Aklan Pumped-Storage HPP in Aklan.
  
• Energy Development Corporation (EDC) and Bac-Man Geothermal Inc.: 5.645 MW Bago Binary Geothermal Power Plant – Unit 1 in Negros Occidental and 21.573 MW Tanawon Geothermal Power Plant – Unit 1 in Sorsogon.
  

With these developments, the DOE reiterates its long-term strategy of lowering power costs through a diversified and renewable energy mix.

What’s your view on the DOE’s long-term power price outlook and GEA-3 awardees? Join the discussion with fellow energy professionals.

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