Preliminary waste-to-energy price proposed at P8.0167/kWh

THE Energy Regulatory Commission (ERC) has set a preliminary price of P8.0167 per kilowatt-hour (kWh) for waste-to-energy (WTE), which will serve as the ceiling price to guide participants in the sixth green energy auction round (GEA-6), which will also cater to prospective biomass providers.

In a notice, the ERC asked interested parties to comment on the proposed green energy auction reserve (GEAR) price prior to public consultations on Feb. 5 and 6.

The Department of Energy (DoE) has yet to issue the terms of reference for GEA-6, but it hopes to organize an auction by the second quarter.

A special auction round designed for WTE projects is targeted for this month. According to the terms of reference, the DoE has set an installation target of 230 megawatts (MW), with delivery targeted within the first quarter of 2028.

WTE is the process of converting non-recyclable waste materials into usable heat, electricity, or fuel using various technologies.

According to 2024 estimates from the National Solid Waste Management Commission, Metro Manila and highly urbanized cities areas generate an estimated 6.12 million metric tons of municipal solid waste, which can be converted to about 335 MW of baseload power.

The DoE is pushing WTE as a strategy to address solid waste management, mitigate floods, and provide additional clean energy.

“The integration of WTE projects into the GEA framework underscores the DoE’s commitment to ensuring energy security, environmental protection, and private-sector participation in the transition to clean and sustainable energy,” the DoE said.

The GEA program aims to promote renewable energy as a primary source of energy through competitive selection.

As a flagship government initiative, the program is expected to contribute to the national target of achieving a 35% renewable energy share in the power generation mix by 2030 and 50% by 2040. — Sheldeen Joy Talavera