ERC Adopts Green Energy Auction Reserve (GEAR) Prices for Round 4 of the Green Energy Auction Program (GEAP)

On 09 June 2025, the Energy Regulatory Commission (“ERC”) issued Resolution No. 09, Series of 2025 (the “ERC Resolution”) adopting the Green Energy Auction Reserve (“GEAR”) prices for round 4 of the Green Energy Auction Program (“GEAP”).

The Department of Energy (“DOE”) issued Department Circular No. 2021-11-0036 or the Revised Guidelines for the GEAP (the “Circular”) establish a framework to accelerate renewable energy (“RE”) development through competitive bidding and long-term contracts, ensuring timely investments, adequate power supply, and fair pricing. It supports energy security, promotes RE as a primary source, enhances transparency in project selection, increases Renewable Energy Certificate (“REC”) availability, and encourages efficient technologies for a low-carbon energy transition.

Section 8 of the Circular mandated the ERC to determine and issue the GEAR Prices including the pricing methodology no later than 60 days from the issuance of the Notice of Auction for the first round, while for succeeding auction rounds, shall be issued 30 days after the issuance of the Notice of Auction.

In line with Section 8 of the Circular, the ERC is mandated to determine and release GEAR prices within a specified timeframe following the issuance of the Notice of Auction. For Round 4, the final GEAR prices are as follows:

Renewable Energy Resource	Final GEAR4 Prices (Php/kWh)
Rooftop Solar	5.6800
Ground-mounted Solar	4.4832
Floating Solar	6.5258
Onshore Wind	6.0859
Solar + ESS	5.4028

Within three (3) months from the effectivity of the Resolution, the DOE, System Operator, and Market Operator are required to develop and submit to the commission a dispatch protocol ensuring that the utilization of the Integrated Renewable Energy and Storage System (“IRESS”) shall primarily be for purposes of load shifting or peak shaving and shall result in lease cost supply.

The ERC Resolution also includes annexes detailing the parameter values and corresponding justifications used in determining the final GEAR prices, ensuring transparency and methodological clarity in the pricing process.
The full text of the ERC Resolution is available on the official ERC Website for public access and reference.