The Government of the Philippines is set to expand its renewable energy capacity with the fourth round of the Green Energy Auction Program (GEA-4), aiming to add 8 GW between 2026 and 2029. This initiative aligns with the country’s objective of achieving a 50 per cent renewable energy share in its power mix by 2040. The auction process, part of the Green Energy Tariff Program (GETP), prioritises transparency and competitiveness, requiring financial and technical vetting for participating projects.
The auction framework allocates capacity across regions, with Luzon receiving the largest share. Ground-mounted solar is the primary focus, with 3.9 GW planned, while floating solar targets may increase due to rising interest. The auction also includes wind and solar-plus-storage projects. Stricter eligibility rules now require solar and wind projects to secure System Impact Study (SIS) and Distribution Impact Study (DIS) approvals before bidding, ensuring grid compatibility but potentially limiting early-stage participation. Developers have requested a transition period to meet these new requirements.
Financial security measures include a PHP1 million per MW bid bond and a performance bond tied to project milestones, with penalties for delays beyond one year. Previous auctions had mixed results, with GEA-1 awarding nearly all capacity in 2022, while GEA-2 in 2023 faced undersubscription due to project readiness issues. GEA-3 in 2025 saw strong interest, particularly in pumped-storage hydro projects. GEA-4 introduces indexation in the Green Energy Tariff to address inflation and exchange rate fluctuations, but implementation details are still under discussion. Industry consultations in February 2025 raised concerns about capacity definitions and provisional grid connection proof. Ensuring an efficient auction process will be crucial in meeting the Philippines’ renewable energy goals.