Through the GEAP, the DOE aims to increase the share of RE in the country's energy mix, reduce greenhouse gas emissions, and promote sustainable development through a transparent and competitive auction process. DOE Department Circular No. DC2021-11-0036, as amended by DOE Department Circular No. DC 2025-03-0004, or the Revised GEAP Guidelines  set out the current framework for the implementation of the GEAP.

In more detail

Below are the salient terms of the GEAP and GEA-4:

1. GEAP's twin components: The GEAP consists of (1) the Green Energy Tariff (GET) and (2) the GEA. The GET refers to the price, in PHP per kilowatt hour, resulting from the conduct of each GEA corresponding to each winning bidder on a pay-as-bid basis. The GEA, on the other hand, facilitates the determination of eligible renewable energy facilities.
2. Injection to the grid: The GEAP contemplates the execution of an renewable energy purchase agreement (REPA) between the winning bidder and National Transmission Commission ("TransCo").
3. Qualified suppliers: Qualified suppliers are those RE developers/generators that have been awarded an RE contract by the DOE or have been issued a Certificate of Authority, pursuant to relevant guidelines. In addition, (a) for roof-mounted solar, the capacity of the RE facility must be at least one megawatt peak, and (b) for integrated solar and ESS projects, only new RE facilities (i.e., those not yet commercially operating) may be registered, provided that existing solar facilities may register if current operations are curtailed.
4. No legal impediment: The capacities of RE facilities  built after the effectivity of the Philippines' Renewable Energy Act of 2008 ("RE Act") may be offered for bidding under the GEA if said facilities have no legal impediment, such as the existence of a power purchase agreement/power supply agreement (PSA) with any distribution utility or other offtakers at the time of the committed delivery date(s).

However, the TOR for GEA-4 clarifies that "Existing RE plants with PSA or as a merchant prior to DCD" may qualify under the GEA-4. In this case, the winning bidder shall be paid the contract price under its PSA rate up until (but excluding) the committed delivery date. The 20-year GET availment period will start on the committed delivery date, subject to the application of rules governing feed-in-tariffs ("FIT Rules").

Further, "legacy projects," or those commercially operating prior to the effectivity of the RE Act,  that have expanded or upgraded their capacity may qualify for GEA-4 to the extent of the incremental RE capacity from this expansion or upgrade, provided that the incremental RE capacity is covered by a separate generating unit and wholly offered, and if it has a dedicated metering facility and corresponding revenue meter.

5. Phased projects: For RE projects that are to be developed in phases, the TOR for GEA-4 clarifies that qualified suppliers may submit registration requirements on a per-phase basis (with each phase having a specific committed delivery date, a dedicated metering facility and a corresponding revenue meter).
6. GEAR Price: The GEAR Price refers to the maximum price offers in PHP per kilowatt hour set by the ERC, which shall be used as the price ceiling for a particular GEA round. The final GEAR prices for GEA-4 have been set by the ERC at PHP 4.4832 per kilowatt hour for rooftop solar, PHP 5.6800 per kilowatt hour for ground-mounted solar, PHP 6.5258 per kilowatt hour for floating solar, PHP 6.0859 per kilowatt hour for onshore wind, and PHP 5.4028 per kilowatt hour for solar battery energy storage systems (BESS).
7. Indexation: Under the Revised GEAP Guidelines, the GET refers to the price, in PHP per kilowatt hour, resulting from the conduct of the GEA corresponding to each winning bidder on a pay-as-bid basis. However, DOE DC 2025-03-0004, dated 7 March 2025, clarified that:

The GET resulting from the [GEAs] conducted after the effectivity of this Circular shall be subject to indexation as may be determined by the ERC in accordance with the FIT Rules.

8. Official Timeline: The DOE has released the following timeline for GEA-4:

Investors, RE developers and project sponsors,  and financiers who seek to participate in GEA-4 are encouraged to review the TOR to understand the investment opportunities and requirements for participation, to prepare and submit the necessary documentation and registration requirements as outlined in the TOR, and/or  to assess the financial viability and risks associated with the projects participating in GEA-4 based on the TOR.

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