The Philippines’ Department of Energy (DOE) has issued Notices of Award (NOAs) under its third Green Energy Auction (GEA-3), allocating a total of 30.9 MW to geothermal energy projects—far below the anticipated 100 MW target.
The awarded capacity comes from three bids, submitted by major developer Energy Development Corporation (EDC) and its subsidiary, Bac-Man Geothermal, Inc (BGI). The projects are expected to be implemented between 2025 and 2027.
EDC has secured contracts for the Mindanao 3 binary geothermal power plant and the Bago binary geothermal power plant, with a combined capacity of 9.3 MW, and with rates ranging from PhP 5.1092 to 7.6441 (USD 0.091 to 0.14 per kWh). Meanwhile, BGI has been awarded contract for the 21.5-MW Tanawon geothermal power plant at a rate of PhP 7.6441 per kWh.
GEA-3 was launched to support the country’s energy transition by securing new capacity from emerging renewable energy sources, including geothermal, hydropower, biomass, and impounded ocean energy. A total of 6,720.2 MW was awarded across all technologies.
While the overall renewable procurement was successful, the underwhelming response in the geothermal category signals potential hurdles in project readiness or commercial conditions. The DOE had opened GEA-3 to geothermal projects for the first time, aiming to diversify the country’s renewable energy mix beyond solar and wind. The awarded geothermal projects are expected to contribute to the DOE’s Renewable Energy Roadmap, which seeks to increase the share of renewables to 35% by 2030 and 50% by 2040.
Source: Business World Online and Philippine Department of Energy
