Sunday, August 9, 2026

Green Energy Auction Postponed Anew

WITH FUEL prices abroad dipping with the opening of the Strait of Hormuz that has eased the supply situation globally, the Philippines, which earlier conceived of a waste-to-energy initiative that could have benefitted the country in two ways, suspended the program indefinitely without explaining why.

The waste to energy program– which is part of the green energy auction of the Department of Energy– could have reduced the overflowing dumpsites of the country and prevent the trashslides which have been increasing in frequency and intensity this year– and it could have reduced the country’s dependence on imported fuel thus saving precious dollar reserves for fuel importation.

The DoE said it suspended activities regarding the special green energy auction (GEA) for waste-to-energy (WTE), which had been set to offer 230 megawatts (MW) of capacity, reported Business World..

DoE Undersecretary Felix William B. Fuentebella, who chairs the GEA-Bids Evaluation and Awards Committee, notified participants in an advisory that the activities and proceedings under the special auction round have been “put on hold until further notice.”

While the DoE did not give a reason for the suspension, the advisory was issued on the same day as the evaluation of registration documents on June 17 following the 23-day registration period.

Weeks earlier, the Energy Regulatory Commission (ERC) had issued a final green energy auction reserve (GEAR) price for WTE.

In a resolution released on May 22, the ERC set the GEAR price at P9.2959 per kilowatt-hour, (kWh) which is higher than the rate initially proposed by the regulator at P8.0167 per kWh.

The ceiling price, or the green energy auction reserve (GEAR) price, serves as the maximum price in pesos per kWh that will guide bidding during the auction.

Launched on Dec. 30, 2025, the auction round is dedicated to pioneer biomass WTE projects, which are classified as baseload facilities. The technology converts waste materials into electricity.

“The initiative aims to reduce landfill dependency, divert residual municipal waste from disposal sites, mitigate greenhouse gas emissions from waste decomposition, and promote sustainable waste management practices while recovering usable energy from non-recyclable waste streams,” the DoE said.

The government launched a 10-year green energy program that will offer at least 25 gigawatts of additional renewable energy capacity through annual competitive auctions.

It hopes to scale up the country’s renewable energy portfolio to meet national targets of 35% renewable energy share by 2030 and 50% by 2040.

The problem with waste to energy programs and other fuel-saving initiatives is that it is pushed when the crisis exists and then shelved with an apparent easing of fuel supply conditions. There is no definite plan to reduce the country’s dependency on imported fuel for the energy sector at all. Everything is lip service.

Neither is there a concrete long term plan to reduce the garbage stockpile problem when dumpsites have reached their carrying capacities. We just wait for accidents and tragedies to happen.

Hopeless case.

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