Between 2027 and 2035,the Philippines will launch multiple annual competitive tenders for renewable energy,with a minimum of 25GW of installed renewable energy capacity available each year.The country’s Department of Energy(DOE)has confirmed that the tenders will cover various renewable energy technologies,with solar power set to play a leading role in multiple rounds.
The next tender,GEA-6,is scheduled for 2027 as part of the Green Energy Auction programme.This tender aims to add 3.2GW of large-scale solar capacity across the national grid’s three main island groups(Luzon,Visayas,and Mindanao),as well as 85MW of rooftop solar capacity in Visayas and Mindanao.GEA-7 will focus on rooftop solar and solar projects co-located with battery energy storage systems(BESS),while GEA-8 will target elevated solar installations above canals.GEA-9 will encompass multiple technologies,including biomass,geothermal,solar,hydropower and onshore wind.An additional 5.6GW of renewable energy capacity will be added through other technologies in GEA rounds held between 2028 and 2035.
This announcement follows the completion of GEA-4 and GEA-5 last year.GEA-4 covered multiple technologies and was the first GEA round to include solar plus storage projects.It awarded over 6GW of solar capacity and 1GW of battery energy storage capacity.GEA-5,meanwhile,was the first tender round dedicated solely to offshore wind.Energy Secretary Sharon S.Garin stated that the GEA programme provides market transparency for potential investors.She added that clear,tender-backed project planning gives developers and financial institutions the clarity needed to plan projects,secure funding,and deliver them on time.She added that the programme's goal is to convert investor interest into reliable,affordable,clean electricity that Filipinos can experience through tangible,buildable projects delivered on time.
The tenders include provisions to incentivise private investment and protect it from fluctuations in the financial matters of renewable energy,such as electricity price volatility.
A key feature of the GEA programme is the Renewable Energy Payment Agreement(REPA),which provides 20-year fixed-price power purchase contracts.These contracts ensure that the purchase price of electricity remains unaffected by changes in electricity prices or line rental costs.This mitigates the risk of instability in power purchases under the time-of-use pricing mechanism used in the Philippine energy market.
Energy research firm Aurora Energy Research has labelled the REPA model one of the most attractive routes to market for renewable energy investors in the Philippines,as it mitigates certain unfavourable factors in the country’s renewable energy market.
In a blog post,Patrick Tan,Head of Asia at Aurora Energy Research,explained that the predictability offered by REPAs results in stronger debt service coverage ratios and a lower perceived risk for lenders,particularly compared to commercial power purchase agreements or Contracts for Difference(CfDs),where revenue is partially exposed to market or delivery uncertainty.However,he also noted that the REPA structure is not without risks,as generators receive payment only for electricity actually delivered,which exposes investors and off-takers to significant curtailment risk.He added that developers must deliver by the specified Delivery Commencement Date(DCD)or risk forfeiting part of their bid bond,meaning that execution risks,such as delays to approvals or difficulties accessing the grid,remain a major concern.
