ERC sets waste-to-energy ceiling price at P9.3/kWh

THE Energy Regulatory Commission (ERC) said it set the ceiling price for electricity generated by waste-to-energy (WTE) projects under the special green energy auction round at P9.2959 per kilowatt-hour (kWh).

In a resolution, the ERC said it approved the final green energy auction reserve (GEAR) price for the WTE projects after “due deliberation and careful consideration of various views and comments submitted by stakeholders.”

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

The approved price is higher than the rate initially proposed by the ERC of P8.0167 per kWh.

“The ERC is mandated to protect the public interest as it is affected by the rates and services of electric utilities and other providers of electric power, thus necessitating the exercise of due diligence in setting the parameters and, ultimately, the GEA price, while ensuring the continued viability of the biomass WTE developers,” the regulator said.

The auction round is dedicated to pioneer biomass WTE projects, which is a baseload renewable energy technology that converts waste materials into electricity.

In a statement over the weekend, the Department of Energy (DoE) said it will begin the registration of qualified suppliers on May 25 for the special auction round.

The government plans to offer 230 megawatts of capacity in this auction, which is targeted to commence delivery from September 2028 to March 2029. 

“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. — Sheldeen Joy Talavera