The Philippine government has officially launched the fourth round of its Green Energy Auction (GEA-4), announced today by the Department of Energy (DOE). This auction introduces a groundbreaking feature: the integration of solar power plants with Battery Energy Storage Systems (BESS), marking a first in the nation’s renewable energy program. With a target of adding 9,378 megawatts (MW) of clean energy capacity, GEA-4 aims to bolster grid reliability while accelerating the country’s transition to renewable energy.
The DOE released the Terms of Reference (TOR) for GEA-4, outlining a transparent and competitive framework for selecting projects. The auction includes a diverse mix of renewable technologies—ground-mounted solar, roof-mounted solar, floating solar, and onshore wind—spanning installation targets from 2026 to 2029 across Luzon, Visayas, and Mindanao.
A standout feature is the addition of 1,100 MW of solar capacity paired with energy storage systems (ESS), dubbed Integrated Renewable Energy and Energy Storage Systems (IRESS). These projects are designed to store excess energy and release it when demand peaks, enhancing the stability of the national grid.
Undersecretary Rowena Cristina L. Guevara emphasized the significance of this initiative, stating that the TOR’s release reflects the Philippines’ commitment to clean energy and energy security. The DOE projects that GEA-4 will drive substantial investments, supporting the nation’s goal of achieving a 35% renewable energy share in the energy mix by 2030.
The auction’s capacity targets are ambitious. For 2026, Luzon (Lot 1) will see 1,000 MW of ground-mounted solar, 1,040 MW of floating solar, and 320 MW of onshore wind, alongside 50 MW of IRESS projects. By 2029, Mindanao (Lot 12) is slated for 200 MW of onshore wind and 120 MW of ground-mounted solar, with 100 MW of IRESS capacity.
The inclusion of floating solar—particularly prominent in Luzon with a total of 2,975 MW across the four years—highlights innovative land-use solutions, while energy storage addresses the intermittency challenges of renewables.
To qualify for IRESS projects, solar facilities must meet strict technical standards, including a minimum four-hour storage duration and an ESS inverter ratio of at least 0.2 relative to solar capacity. The DOE also mandates a round-trip efficiency of 85%, ensuring efficient energy use. Existing solar plants facing curtailed operations can participate, provided they lack a Provisional Authority to Operate or Certificate of Compliance.
The GEA-4 process kicks off with the Notice of Auction (NOA) posted today, though timelines will begin once Department Circular No. DC2025-03-004 takes effect following its imminent publication. This circular updates the Green Energy Auction Program (GEAP) guidelines, introducing indexation of the Green Energy Tariff (GET) as determined by the Energy Regulatory Commission (ERC). This adjustment aims to maintain fair pricing amid market fluctuations, boosting investor confidence.
Registration for qualified suppliers opens one working day after the ERC publishes the Green Energy Auction Reserve (GEAR) Price. Suppliers must hold a renewable energy service contract or a Certificate of Authority under revised guidelines. Winning projects will secure 20-year supply contracts starting from their commercial operation date, offering long-term stability for developers.
As the Philippines pioneers this solar-storage integration with GEA-4, questions linger: Will this ambitious push for renewable energy and storage finally tip the scales toward sustainability, or could the technical and financial hurdles slow the nation’s green momentum? Share your thoughts!
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