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Philippines Eyes 25 GW Green Energy Expansion in New Auction

The Philippines Department of Energy (DOE) is poised to auction an additional 25 gigawatts (GW) of renewable energy capacity, a significant expansion of its Green Energy Auction Program (GEAP). Energy...

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The Philippines Department of Energy (DOE) is poised to auction an additional 25 gigawatts (GW) of renewable energy capacity, a significant expansion of its Green Energy Auction Program (GEAP). Energy Secretary Sharon Garin announced the ambitious timeline at the Arangkada PH Forum, stating that the new capacity, which builds upon approximately 20 GW already awarded, is slated for delivery between 2027 and 2035. The forthcoming auctions are expected to be rolled out within the next 12 months, marking a critical step in the nation's energy transition.

This initiative represents a strategic push by Manila to harness its abundant natural resources, reduce reliance on volatile fossil fuel imports, and fortify its energy security. The rapid scale-up aims to attract substantial investment, create jobs, and ensure long-term power affordability for millions of Filipinos, while simultaneously propelling the country toward its ambitious climate commitments. The success of these auctions will determine the pace and resilience of the Philippines' shift towards a cleaner, more sustainable energy future.

The comprehensive auction design encompasses a diverse array of renewable technologies crucial for building a resilient energy mix. Among the solutions targeted are utility-scale offshore wind installations, innovative solar projects integrated into fishponds, floating platforms, and agricultural land, as well as biomass and geothermal power. Notably, the DOE also intends to include waste-to-energy (WtE) projects, a move that has drawn both support for its potential to address waste management and sharp criticism from environmental advocates.

A dedicated auction is specifically planned for 3.3 gigawatts of offshore wind capacity, underscoring the nation's strategic focus on leveraging its vast marine potential. This specialized approach reflects an understanding that offshore wind requires unique investment and technical considerations compared to other renewable sources.

Secretary Garin expressed unwavering confidence in the country's capability to achieve its aggressive renewable energy targets. The DOE is firmly committed to having renewables account for 35 percent of the nation's power generation mix by 2030, a figure projected to climb to 50 percent by 2040, and to exceed 50 percent by mid-century. This trajectory marks a substantial acceleration from the over 25 percent share that renewables contributed to the national power generation mix in 2025, demonstrating the urgency driving current policy.

Beyond the immediate environmental imperative, the transition to indigenous renewable sources is championed for its profound economic advantages. Garin emphasized that a greater reliance on green energy not only enhances long-term affordability for consumers but also strengthens energy security by insulating the archipelago from global price volatility. This shift is also seen as a powerful engine for domestic and foreign investment, fostering widespread job creation across various sectors from manufacturing to engineering. Complementary efforts, such as the "One Hour Energy Efficiency" program, are also being promoted to encourage citizens to adopt energy-saving habits, further bolstering national energy resilience.

However, the inclusion of waste-to-energy incineration facilities within the GEAP has ignited significant debate. Environmental groups, prominently the Interfacing Development Interventions for Sustainability (IDIS) Inc., have voiced strong opposition to the classification of WtE incineration as a green or renewable energy solution. Speaking in Davao City, IDIS Executive Director Lawyer Mark Penalver argued against its participation, citing concerns over potential health risks, environmental degradation, including greenhouse gas emissions and toxic pollutants, and the generation of hazardous residues.

Penalver and IDIS have urged local governments to prioritize strengthening existing waste management systems, advocating for robust programs focused on segregation, recycling, composting, and resource recovery, rather than embracing what they view as environmentally problematic incineration. This internal disagreement highlights the complex considerations inherent in defining and pursuing a truly sustainable energy future, even as the government aims for a broad, inclusive approach to renewables.

The expansion of the Green Energy Auction Program is an integral component of a broader, holistic national energy strategy enacted under the Marcos administration. This includes the recent introduction of two landmark energy frameworks: the 2026 National Oil and Gas Contingency Plan (NOGCP) and the Fuel Transition Plan (FTP). These comprehensive plans are designed to buffer the country against international supply shocks while simultaneously accelerating the pivot towards clean power. The overarching goal is to slash national oil dependency by at least 30 percent by 2030, 50 percent by 2040, and over 50 percent by 2050, signaling a dramatic reorientation of the nation’s energy backbone.

Parallel efforts are underway to transform the transportation sector, with aggressive targets set for electric vehicle (EV) adoption. The government aims for EVs to constitute 25 percent of the national fleet by 2030, surging to an ambitious 80 percent by 2040. This monumental transition is to be supported by a robust charging infrastructure, with at least 7,000 public charging stations planned by 2028. Furthermore, the energy transition plan mandates scaling biodiesel to a 20 percent blend (B20), expanding ethanol use, and securing 50 percent Sustainable Aviation Fuel (SAF) and 30 percent alternative marine fuel by 2050, demonstrating a comprehensive multi-sectoral approach to decarbonization.

International interest and investment are already flowing into the Philippines' burgeoning renewable energy sector, signaling global confidence in its potential. Germany’s renewable energy firm wpd AG, for instance, plans a substantial investment of ₱392 billion (approximately US$6.7 billion) to develop 3,260 megawatts of offshore wind power in strategic locations such as Ilocos Norte, Mindoro, and Northern Samar. Local players like Alternergy Holdings Corporation are also actively contributing, with projects such as the 64 MW Alabat Wind Power Project under GEAP Round 2 already seeing the installation of advanced typhoon-resistant turbines. Eurohydro Power (Asia) Holdings, Inc. and First Gen Corp. are exploring significant hydroelectric power projects, poised to participate in the GEAP, highlighting diverse investor confidence across various renewable technologies.

The Philippines is also breaking new ground in unconventional energy sources. The nation made history by hosting the world’s first competitive auction for native white hydrogen exploration rights, signaling its innovative approach to energy security and diversification beyond traditional fuels. Efforts to revitalize the country's standing as the world's third-largest geothermal producer are also underway, supported by a US$174.8-million Asian Development Bank-backed de-risking facility designed to absorb high upfront exploration costs inherent in geothermal exploration.

The existing Green Energy Auction Program has already proven effective in accelerating renewable energy deployment, having successfully awarded approximately 20 gigawatts of renewable capacity under 20-year fixed-rate contracts. This market-based mechanism provides long-term certainty for developers and investors, incentivizing the rapid expansion of clean energy infrastructure across the archipelago. The upcoming additional 25 GW auction will leverage this established framework, further solidifying the Philippines’ commitment to a market-driven energy transition.

This invigorated pursuit of green energy, anchored by the expansive GEAP, positions the Philippines as a burgeoning leader in renewable energy deployment within Southeast Asia. The combination of ambitious targets, diverse technological inclusion, and robust policy frameworks aims to create a more resilient, environmentally sound, and economically vibrant nation for decades to come, even as the complex social and environmental implications of certain green technologies continue to be debated.

As the Philippines moves to significantly expand its renewable energy portfolio, the successful execution of these auctions will not only test the capacity of its infrastructure and regulatory frameworks but also define the contours of its energy independence in a rapidly changing global climate landscape.

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