DOE Eyes Fresh 20-GW Renewable Push To Hit 2040 Clean Energy Goal
- May 26, 2026
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The Philippines is preparing another wave of renewable energy auctions to secure at least 20 gigawatts (GW) of additional clean power capacity as the government pushes to meet its target of sourcing half of the country’s electricity from renewable energy by 2040.
Energy Secretary Sharon Garin said the country still needs roughly 20 GW of additional renewable energy (RE) capacity to achieve the long-term goal, even after the Department of Energy (DOE) had already awarded around 20 GW through previous rounds of the government’s Green Energy Auction (GEA) program.
The Philippines currently derives about 25 percent of its electricity from renewable sources, still below the government’s interim target of 35 percent by 2030. Coal remains the country’s dominant power source, leaving the energy sector exposed to global fuel price swings and supply disruptions.
Upcoming Auction Rounds
To accelerate the transition, the DOE is intensifying its auction program, which allows renewable energy developers to compete for long-term supply contracts through competitive bidding.
Since the first GEA round in 2022, the DOE has completed four auctions covering technologies such as solar, onshore wind, hydropower, geothermal, biomass, and battery energy storage systems. These projects are expected to deliver more than 20 GW of capacity through 2035.
The government’s latest 10-year GEA roadmap targets at least 25 GW of additional renewable energy installations and is projected to attract around P25 trillion in investments.
Upcoming auction rounds will include offshore wind, rooftop solar, floating solar, waste-to-energy, biomass, and battery storage projects, with deliveries scheduled from 2027 to 2035.
For this year, the DOE is preparing several bidding rounds, including the country’s first auction dedicated solely to offshore wind projects. Separate auctions for waste-to-energy facilities and biomass are also being readied.
The seventh round of the GEA program will focus on Mindanao, where electricity demand continues to rise. The DOE said another auction batch targeting the Visayas and Mindanao grids is also in the pipeline to support a more balanced power system nationwide.
Waste-To-Energy Projects Gain Momentum
The DOE is also moving forward with its first dedicated waste-to-energy auction, which officials expect to draw significant private sector participation.
The sixth Green Energy Auction program will offer 230 megawatts (MW) of biomass-fueled waste-to-energy capacity. Energy Undersecretary Rowena Cristina Guevara said investor interest has already emerged ahead of the formal bidding process.
The DOE is expected to release the terms of reference and notice of auction in the coming days, with procurement rounds scheduled toward the end of the first half of 2026.
Winning developers will secure 25-year power supply agreements and must complete projects within a two-year construction period. The auction will follow a pay-as-bid system, while developers will also be required to partner with local government units to ensure a stable municipal waste supply for the facilities.
The Energy Regulatory Commission earlier approved a Green Energy Auction Reserve price for waste-to-energy projects at ₱8.0167 per kilowatt-hour, which will serve as the maximum allowable tariff during bidding.
Energy officials have identified Metro Manila, Cebu, Bacolod, Cagayan de Oro, and Davao as priority areas for the initial facilities due to high waste volumes and growing electricity demand.
Grid Readiness
As more intermittent renewable projects enter the system, the DOE has also been pushing battery energy storage integration to improve grid reliability.
The agency earlier required solar and wind developers participating in auctions to incorporate battery storage systems capable of storing excess electricity and releasing power during peak demand periods.
Guevara said the DOE and the National Grid Corp. of the Philippines (NGCP) are closely coordinating to ensure transmission infrastructure keeps pace with the incoming renewable capacity.
“In some cases, the NGCP allows the renewable energy developer to advance construct some parts of the transmission assets needed for them to connect to the grid before the deadline of their delivery,” she said.
Industry stakeholders said streamlining permits remains critical for the country to stay on track with its clean energy goals.
Jose Layug Jr., executive board member of the Philippine Energy Research and Policy Institute, said the Philippines can achieve its renewable targets if the government continues easing bureaucratic processes for developers.
“The long process of obtaining multiple permits from different national government agencies and local government units” remains one of the biggest challenges, he said.
Layug also stressed the need to reduce the country’s dependence on imported fossil fuels amid ongoing geopolitical tensions and volatility in global energy markets.
“The recent crisis just reconfirmed the existing vulnerability of the Philippines in supply and price shocks as we are heavily dependent on imported fossil fuels,” he said.
As of April 2026, the Philippines had 10.7 GW of operational renewable energy capacity, according to data from the Independent Electricity Market Operator of the Philippines.
Source:
https://business.inquirer.net/591989/doe-eyes-additional-20-gw-to-hit-2040-renewables-goal
https://mb.com.ph/2026/05/25/doe-new-green-energy-auctions-spark-strong-developer-interest
