Green Energy Auction Program (GEAP)

The Green Energy Auction Program (GEAP) is a DOE -administered competitive RE procurement mechanism under the Renewable Energy Act (RA 9513) . It facilitates the centralized, transparent, and competitive selection of RE projects through an electronic bidding process, enabling the DOE to procure committed RE capacity aligned with the country’s RPS obligations and generation planning targets.

RE generated from plants winning GEAP auctions is eligible for Renewable Energy Certificates (RECs) , which Mandated Participants may use to satisfy their RPS requirements [PEP 2023-2050 Vol. II, p.43, 2023].

Original GEA Policy — Historical Baseline (DC2020-07-0017)

DC2020-07-0017 (2020, Secretary Cusi) — “Promulgating the Guidelines Governing the Policy for the Conduct of Green Energy Auction in the Philippines” — established the original GEA framework. Superseded by DC2021-11-0036 (November 2021) [DC2020-07-0017, §19, 2020].

Core Structure Established in 2020

Three foundational elements introduced by DC2020-07-0017 that carry forward unchanged into all successor circulars [DC2020-07-0017, §§5–14, 2020]:

1. Pay-as-bid GET: Each Winning Bidder receives its own offered price; GEAR Price (ERC-determined ceiling) disclosed on auction day by opening a sealed ERC envelope
2. CSP compliance link (§13): A DU contracting through GEA is deemed compliant with CSP requirements under DC2015-06-0008/DC2018-02-0003 — established from the outset
3. RPS compliance link (§14): RE volume from GEIAs counts toward Mandated Participants’ RPS obligations — also present from the start

Two Auction Types (Section 7.1)

The original circular provided for two tracks [DC2020-07-0017, §7.1, 2020]:

• Supply-Only Auction — awards only a Green Energy Implementation Agreement (GEIA); open to RE projects already covered by RE Contracts
• Integrated OCSP-Supply Auction — awards RE Contract + GEIA in an integrated process

The Integrated OCSP-Supply track was carried into DC2021-11-0036 but GEA-1 and GEA-2 were conducted as Supply-Only auctions.

What DC2021-11-0036 Added

The 2020 framework had no Opt-In Mechanism (DUs carving volume directly from FIT-All) and no explicit FIT-All funding channel — Winning Bidders were paid through GEIAs without a specified socialized fund. DC2021-11-0036 added: (a) the FIT-All payment channel via TransCo REPAs, (b) the Opt-In Mechanism for DUs, and (c) a more explicitly defined GEAC composition including IEMOP and TransCo representatives [DC2021-11-0036, §§10, 11, 17.3, 2021-11-03].

Enabling Circular

DC2021-11-0036 (3 November 2021) — “Providing the Revised Guidelines for the Green Energy Auction Program in the Philippines.” Issued by DOE Secretary Alfonso Cusi; supersedes DC2020-07-0017. This is the foundational circular governing GEA-1 and GEA-2. Legal basis: RA 7638 (DOE Charter), RA 9136 (EPIRA §37), RA 9513 (RE Act §5) [DC2021-11-0036, §Whereas, 2021-11-03].

Pricing: Pay-as-Bid GET

Each winning bidder receives its own offered price as its Green Energy Tariff (GET) — a pay-as-bid structure, not a uniform clearing price. The Green Energy Auction Reserve (GEAR) Price, set by the ERC, acts as a per-technology ceiling. Bids must fall at or below GEAR to be valid [DC2021-11-0036, §5.3, §8, 2021-11-03].

Funding Channel: FIT-All

In the base case, winning bidders are paid through the FIT-All mechanism: TransCo enters into Renewable Energy Payment Agreements (REPAs) with each winner and includes the GET in its FIT-All petition to the ERC. Costs are socialized across all electricity consumers nationwide [DC2021-11-0036, §17.3, 2021-11-03].

Opt-In Mechanism

Distribution Utilities (DUs) may opt to procure directly from GEA winners at the GET, carving that volume out of the FIT-All pool and charging their own captive customers instead. Corresponding RECs accrue to the opting-in DU for RPS compliance. See Opt-In Mechanism (GEAP) [DC2021-11-0036, §10, 2021-11-03].

Dual Compliance Function

A GEAP auction simultaneously satisfies: (a) the Competitive Selection Process (CSP) requirement for DUs under EPIRA, and (b) RPS obligations for Mandated Participants. The GET of the marginal winning plant also serves as the price ceiling for any DU-initiated CSP [DC2021-11-0036, §13–15, 2021-11-03].

Technology Eligibility

FIT-eligible RE technologies (solar, wind, biomass, ROR hydro) are covered by DC2021-11-0036. Geothermal and impounding hydropower are explicitly excluded, requiring a separate auction policy (§6.1.3) — addressed by DC2023-10-0029 for GEA-3.

Administration: GEAC

The Green Energy Auction Committee (GEAC) is headed by the DOE Assistant Secretary designated to lead the RPS Composite Team. It includes Market Operator (IEMOP) and TransCo representatives, assisted by a Technical Working Group drawn from EPIMB, REMB, Legal, and Financial Services [DC2021-11-0036, §11, 2021-11-03].

Early History

The first Notice of Auction was issued on 9 February 2022 for 2,000 MW (hydro, biomass, solar, wind). ERC Resolution No. 2 s.2022 (26 May 2022) set the GEAR ceiling prices per RE technology for GEA-1. The electronic bidding platform was developed in collaboration with USAID-Energy Secure Philippines (USAID-ESP) [NREP 2020-2040, p.31, 2022].

Auction Results

GEA-1 (1st Green Energy Auction)

• Date: 17 June 2022
• Offered capacity: 2,000 MW
• Results: 18 Certificates of Award issued; 1,866.13 MW committed
• Delivery window: 2023–2025

[PEP 2023-2050 Vol. II, p.43, 2023]

GEA-2 (2nd Green Energy Auction)

• Date: 3 July 2023
• Results: 3,440.76 MW from 105 winning bidders; committed delivery 2024–2026

GEA-2 technology breakdown [PEP 2023-2050 Vol. II, footnote 57, 2023]:

Combined GEAP Pipeline

As of GEA-2 close (2023), total GEAP-committed RE capacity: approximately 5,307 MW (GEA-1 + GEA-2).

GET=FIT Clarification — DC2023-09-0027

DC2023-09-0027 (26 September 2023) amended §9.13 of DC2021-11-0036 to close a regulatory gap in how GEA winners interface with the FIT-All payment infrastructure:

• COE-GET = Certificate of Endorsement for FIT Eligibility — GEAP winners use their DOE-issued COE-GET to obtain the ERC’s Certificate of Compliance through the same process as FiT plants.
• GET = FIT for FIT-All Fund — The competitively bid GET is the FIT to which the Winning Bidder is entitled; it is not a separate or additional charge against the FIT-All Fund [DC2023-09-0027, §1, 2023-09-26].

This amendment applies to GEA-1 and GEA-2 winners (FIT-track) who were already processing through the system at the time.

GEA-3 — Non-FIT Technologies (DC2023-10-0029)

GEA-3 was governed by DC2023-10-0029 (December 2023), which introduced a materially different auction architecture for non-FIT-eligible technologies (geothermal, impounding hydro, pumped-storage hydro). See that page for the full structural comparison. Key differences from GEA-1/GEA-2:

ERC approves the winners, not just the ceiling. Under GEA-1/GEA-2, the ERC only set the GEAR Price ceiling; the DOE declared winners by lowest bid. Under GEA-3, the DOE endorses compliant bids to the ERC, and the ERC evaluates and approves the winning Price Offers against its own published parameters [DC2023-10-0029, §5.4, §6, 2023-12-12].

WESM settlement, not FIT-All. GEA-1/GEA-2 winners are paid through TransCo REPAs and the FIT-All socialized charge. GEA-3 winners are paid through the WESM settlement mechanism administered by IEMOP — a top-up/flowback system where WESM buyers collectively guarantee the Non-FIT GET [DC2023-10-0029, §7, 2023-12-12].

RECs go to WESM buyers, not FIT-All payers. GEA-1/GEA-2 RECs flow to RPS Mandated Participants pro rata to FIT-All payments. GEA-3 RECs flow to WESM trading participants pro rata to their settlement quantities [DC2023-10-0029, §11, 2023-12-12].

GEA-BEAC — a separate GEA-Bids Evaluation and Awards Committee screens legal/technical compliance before bids reach the ERC [DC2023-10-0029, §5.4, 2023-12-12].

GEA-3 Results

• Auction proper: 11 February 2025
• Notice of Award: 10 June 2025
• Impounding hydro: 300 MW (Pan Pacific Renewable Power Phils. Corp.)
• Pumped-storage hydro: 6,350 MW (5 companies; delivery 2028–2035)
• Geothermal: 30.887 MW (Energy Development Corporation; Bac-Man Geothermal, Inc.)
• Total awarded: ~6,681 MW

ERC PDM Authority for Non-FIT Pricing — DC2024-03-0010

DC2024-03-0010 (25 March 2024) amended DC2023-10-0029 to transfer price evaluation authority entirely to the ERC ahead of the GEA-3 auction:

• ERC issues its own PDM within 60 days of effectivity, including cost range assumptions and PIRR-weighted cost of capital. DOE no longer publishes price parameters [DC2024-03-0010, §1–2, 2024-03-25].
• Evaluation flows through ERC PDM. DOE endorses legally/technically compliant bids; ERC evaluates against its PDM within 60 days and endorses results back to DOE [DC2024-03-0010, §3, 2024-03-25].
• Non-FIT GET indexation introduced. The ERC PDM “shall include indexation as may be determined by the Commission” — a separate regime from the FIT-track GET indexation in DC2025-03-0004 [DC2024-03-0010, §3, 2024-03-25].
• Winning Bidder standard: “found consistent by ERC with its PDM” — more transparent and criteria-bound than the prior open-ended “approved by ERC” [DC2024-03-0010, §4, 2024-03-25].

PSH Settlement Amendment — DC2024-09-0028

DC2024-09-0028 (September 2024) amended DC2023-10-0029 to give PSH — which dominated GEA-3 at 6,350 MW — its own settlement framework:

• Capacity pricing: PSH bids in PhP/kW/h (per kilowatt of available capacity), not PhP/kWh (energy). The winning bidder’s Non-FIT GET is a capacity price.
• Dual-market revenue: The Total Trading Amount for PSH settlement encompasses both WESM Energy Trading Amount and Reserve Market Trading Amount. PSH is guaranteed payment for capacity availability regardless of dispatch.
• Single PDS Charge: PSH pays only one Power Delivery Service Charge whether injecting or drawing — critical for its economics as a bidirectional storage asset.
• Market integration rules: DOE committed to issue separate rules for PSH scheduling, AS Capability certification, and linkage to VRE surplus absorption (pumping with excess solar/wind).

See Pumped-Storage Hydropower (PSH) in GEAP for formula details.

GET Indexation for Future Auctions — DC2025-03-0004

DC2025-03-0004 (March 2025) made three targeted amendments to DC2021-11-0036 affecting GEA-4 and later auctions:

1. GET indexation now explicit. The GET from GEA-4 onward is subject to annual ERC-determined indexation (local inflation + FOREX) per ERC Res. No. 16 §2.10 — identical to FiT rate adjustment. GEA-1 and GEA-2 GETs are grandfathered; GEA-3 was before effectivity.

2. COA-holders may now participate. “Qualified Suppliers” expanded to include RE Developers issued with a Certificate of Authority (COA) under DC2024-06-0018 — not just those with a full RE Contract.

3. Newspaper publication removed for NOA. DOE website posting alone is sufficient notice for the Notice of Auction.

One-Time GET Indexation Clarification — DC2025-06-0009

DC2025-06-0009 (9 June 2025; effectivity ~8 July 2025) amended DC2025-03-0004 to clarify how GET indexation works in practice for GEA-4 and later FIT-track auctions:

Indexation is one-time only. New §17 of DC2021-11-0036 explicitly states that the GET “shall be adjusted for indexation only once.” This overrides the FIT Rules’ annual adjustment mechanism via a “notwithstanding” proviso [DC2025-06-0009, §2, 2025-06-09].

Timing: Certificate of Award → COD. The single adjustment may be applied at any point between issuance of the Certificate of Award and commencement of commercial operations — before the project goes live, not after [DC2025-06-0009, §2, 2025-06-09].

New §17 separates indexation from §16. Section 16 (general FIT Rules adoption) now points to §17 for indexation governance — §8 governs pricing (GEAR), §17 governs indexation. The FIT Rules framework still applies to everything else (administration, COC process, etc.) [DC2025-06-0009, §1, 2025-06-09].

Open/Competitive Selection Process (OCSP)

In parallel, the DOE conducts the Open and Competitive Selection Process (OCSP) for RE technologies where direct competitive bidding is more appropriate than a pure auction format. OCSP4 was conducted under DC2023-06-0019, offering 20 Pre-Determined Areas (PDAs): 3 geothermal, 14 hydropower, 3 wind. Four applications won (2 geothermal, 2 wind) [PEP 2023-2050 Vol. II, p.45, 2023].

GEAP as Formal RPS Compliance Mechanism

DC2023-05-0015 (23 May 2023) formally listed the GEAP and/or its Opt-In Mechanism, and Distributed RE Resources as a compliance mechanism under Section 15(f) of the RPS On-Grid Rules [DC2023-05-0015, §5, 2023-05-23]. Prior to this amendment, GEAP’s role in RPS compliance was implied through the REC generation mechanism (GEAP-winning RE plants issue RECs to MPs); the §15(f) amendment makes it an explicit, named compliance pathway subject to DOE determination upon RPSCT recommendation and stakeholder consultation.

Policy Context

GEAP complements the RPS by providing a supply-side mechanism that aggregates demand for RE capacity into predictable, competitively priced tranches. It reduces developer risk through guaranteed off-take commitments while ensuring that procurement costs are transparent and competitive [PEP 2023-2050 Vol. II, p.45, 2023]. See Renewable Portfolio Standards (RPS) .