The Energy Regulatory Commission (ERC) has approved a Green Energy Auction Reserve (GEAR) Price of PHP 9.2959 per kilowatt-hour (kWh) for pioneer waste-to-energy (WTE) projects, setting the benchmark rate for the government’s upcoming special renewable energy auction round.

In a resolution issued on Friday, ERC said the approved reserve price will apply to pioneer WTE facilities under the Green Energy Auction Program (GEAP), which aims to add new power supply while helping address the country’s growing solid waste management concerns.

The Department of Energy (DOE), through the Green Energy Auction Committee (GEAC), has set an installation target of 230 megawatts (MW) for the special auction round, with commercial operations targeted between September 2028 and March 2029.

Waste-to-energy facilities convert municipal solid waste, including household garbage, into electricity through thermal combustion technology. Under DOE guidelines, only projects using municipal solid waste exclusively as fuel — without co-firing or mixing with other fuel sources — will qualify for the program.

The ERC said the approved GEAR Price was finalized following public consultations and evaluation of technical, financial, operational, and environmental inputs from stakeholders in the energy, renewable energy, and waste management sectors.

“The approval of the GEAR Price for Pioneer Waste-to-Energy Projects reflects the ERC’s commitment to support cleaner and more innovative energy technologies while protecting consumers. These projects can help provide additional and dependable power supply while also helping local government units address growing waste management challenges,” ERC Chairperson and CEO Atty. Francis Saturnino C. Juan said.

“The ERC carefully studied the costs and long-term requirements of these projects to ensure that the approved rate remains fair, transparent, and reflective of prudent and efficient costs,” he added.

The ERC noted that WTE projects require substantial capital investments, including spending for specialized equipment, pollution control systems, environmental monitoring, and long-term plant operations to comply with environmental and safety standards.

The regulator also said the development of WTE facilities could help strengthen the country’s energy security by diversifying renewable energy sources, reducing dependence on imported fuels, and encouraging investments in modern waste management infrastructure.

What do you think about the role of waste-to-energy projects in the country’s energy transition and waste management strategy? Join the discussion.

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