ERC Finalizes Price Caps for 4th Green Energy Auction
- July 7, 2025
The Energy Regulatory Commission (ERC) has finalized the maximum allowable rates for the upcoming fourth Green Energy Auction (GEA), paving the way for fresh renewable energy (RE) bids this September and signaling continued momentum in the country’s clean energy shift.
As a key government effort, the program aims to help boost RE’s share in the national power mix to 35% by 2030.
(Also read: Bright Future Ahead: Plans Set for 100% Rural Power Coverage)
Established rates
Through a recent resolution, the ERC approved the final Green Energy Auction Reserve (GEAR) prices for GEA-4, setting rates at ₱5.68/kilowatt-hour (kWh) for rooftop solar, ₱4.4832/kWh for ground-mounted solar, ₱6.5258/kWh for floating solar, ₱6.0859/kWh for onshore wind, and ₱5.4028/kWh for integrated solar with storage.
Following stakeholder input and public consultations, the ERC adjusted most final GEAR-4 rates upward from their initial proposals, except for onshore wind. The earlier suggested prices included ₱4.7679/kWh for rooftop solar, ₱4.1480 for ground-mounted solar, ₱5.9515 for floating solar, ₱6.5134 for onshore wind, and ₱5.2835 for solar with storage.
The ERC said it arrived at the final GEAR-4 rates after extensive review and consultation, weighing feedback and aligning with national energy laws. Citing the principle of “efficiency international benchmarks”, the commission stressed that the approved rates reflect only the prudent costs that should be shouldered by consumers.
The ERC emphasized its duty to safeguard public interest in matters affecting power rates and utility services, underscoring the importance of due diligence in setting the GEAR prices. At the same time, it noted the need to strike a balance by keeping RE investments financially viable.
In line with the Department of Energy’s (DOE) directives, the approved rates come with an indexation mechanism and simplified tariff adjustment process. This adjustment, however, is limited to a one-time application, taking place only between the awarding of contracts and the start of commercial operations of the selected RE projects.
(Also read: DOE Directs NEA to Lead Joint Bidding for EC’s Renewable Supply)
Boosting investor confidence
The Department of Energy has opened bidding for 10,472 megawatts of RE capacity under GEA-4, targeting supply between 2026 and 2029. This latest round offers an expanded allocation for floating solar in the Visayas, driven by rising demand and growing investor interest.
The GEA-4 auction is scheduled for September 2, with the list of winning bidders to be announced by October 22. Certificates of award are set to be issued between November 24, 2025, and January 9, 2026.
The DOE described GEA-4 as a significant step toward securing a more sustainable energy future for the Philippines, highlighting it as the first auction round to incorporate battery energy storage into the mix.
“With over 10 gigawatts of solar and wind capacity up for auction — targeted for commercial operations from 2026 to 2029 — this round aims to boost the RE share in the country’s energy mix, strengthen grid reliability, and ensure energy security,” the agency announced.
The DOE also emphasized that GEA-4 reinforces its commitment to fair, open, and efficient energy procurement, while driving further investment into the country’s growing RE sector.
Sources:
https://www.philstar.com/business/2025/06/16/2450755/erc-sets-ceiling-rates-fourth-green-auction
