The Energy Regulatory Commission (ERC) has approved the Green Energy Auction Reserve (GEAR) Price for Pioneer Waste-to-Energy (WTE) Projects, setting the benchmark at Php 9.2959 per kilowatt-hour (kWh) under ERC Resolution No. 16, Series of 2026.
This approved reserve price will serve as the ceiling price for the government’s upcoming Green Energy Auction Program (GEAP), specifically targeting pioneer WTE facilities designed to bolster the nation’s clean energy grid while addressing critical municipal solid waste management challenges.
Waste-to-Energy facilities utilize thermal combustion technology to convert everyday municipal solid waste, such as household garbage, into electricity. To maintain the environmental integrity of the initiative, the Department of Energy (DOE) guidelines mandate that only facilities utilizing 100% municipal solid waste—without blending other fuel sources—will qualify for the program.
To kickstart development, the DOE’s Green Energy Auction Committee (GEAC) has established a strict 230-megawatt (MW) installation target for this Special Auction Round. Qualified projects are projected to commence commercial operations between September 2028 and March 2029.
“The approval of the GEAR Price for Pioneer Waste-to-Energy Projects reflects the ERC’s commitment to support cleaner and more innovative energy technologies while protecting consumers. These projects can help provide additional and dependable power supply while also helping local government units address growing waste management challenges,” said Atty. Francis Saturnino C. Juan, ERC Chairperson and CEO.
The ERC finalized the Php 9.2959 per kWh rate following rigorous public consultations and an exhaustive evaluation of technical, financial, operational, and environmental data submitted by stakeholders across the energy, renewable energy, and waste management sectors.
The benchmark rate accounts for the substantial capital expenditures required to build and operate modern WTE facilities. These include specialized processing equipment, advanced pollution control systems, strict environmental monitoring, and long-term operational costs necessary to meet stringent national safety and environmental standards.
“The ERC carefully studied the costs and long-term requirements of these projects to ensure that the approved rate remains fair, transparent, and reflective of prudent and efficient costs,” Chairperson Juan added.
By establishing a clear, viable commercial framework for WTE infrastructure, the ERC aims to drive significant benefits for the Philippines:
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Enhanced Energy Security: Adding a dependable, baseload source of renewable power to the grid.
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Reduced Import Reliance: Displacing expensive, foreign fossil fuels with locally managed waste streams.
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Infrastructure Investment: Incentivizing modern, private-sector investments into local government waste management systems.
The ERC reaffirms its commitment to transparent, consumer-focused, and forward-looking regulation as the country accelerates toward a cleaner, more resilient, and sustainable energy future.
