The Department of Energy has announced plans to conduct the Philippines’ first natural gas auction, with contract awards expected by the end of the year.
The auction focuses on mid‑merit natural gas capacity, a strategy designed to support the transition to cleaner and more sustainable energy sources.
This initiative follows the enactment of a national act that encourages the use of domestic natural gas over imported fuels and other conventional sources, addressing the growing penetration of variable renewable energy.
Eligible participants include operators of existing, uncommitted, newly built, and upgraded natural gas facilities, with an emphasis on flexible mid‑merit capacity to mitigate grid intermittency.
The Energy Secretary emphasized that gas-fired plants offer a balanced solution: they can ramp up and down quickly, avoid the damage associated with coal, and are more economical than diesel.
While the department has yet to set a definitive installation target for the auction, it is working to align the procurement with national grid stability goals.
Technical assessments of two major liquefied natural gas import and regasification complexes were recently completed to support the auction’s planning.
Overall, the auction seeks to strengthen the reliability and cost‑efficiency of the national grid while advancing the country’s clean energy transition.
