By Othel Campos The Department of Energy (DOE) is pushing to integrate waste-to-energy (WTE) technology into the national power generation mix to tackle both increasing energy demand and mounting solid waste.
Energy Secretary Sharon Garin signed Department Circular No. DC 2025-11-0026 on Nov. 3, 2025, establishing a policy framework for the commercial development, regulatory oversight and grid integration of WTE facilities, aligning with the Clean Energy Scenario under the Philippine Energy Plan.
The circular designates “pioneer WTE projects” as those using thermal combustion to process municipal solid waste (MSW) from highly urbanized cities (HUCs) or individual or clustered local government units (LGUs) that achieve commercial operations by March 31, 2028. These pioneer projects are eligible for priority permitting, dispatch, and other incentives.
Pioneer WTE projects are automatically certified as an energy project of national significance and will receive preferential dispatch as priority dispatch in the Wholesale Electricity Spot Market (WESM).
Those not under the Green Energy Auction Program (GEAP), regardless of capacity, will be exempt from the Competitive Selection Process (CSP).
The DOE will issue a list of HUCs or LGU clusters to supply the MSW feedstock for pioneer WTE projects through special auction rounds under the GEAP. Multiple pioneer projects can only source feedstock from a specific HUC or LGU cluster if the MSW volume is sufficient to sustain operations, or if the developer provides a feedstock supply agreement from other sources.
The circular directs the Energy Regulatory Commission (ERC) to formulate rules for determining the appropriate price-setting methodology for pioneer WTE projects. Alena Mae S. Flores
These rules should establish a reference price or tariff range, define a long-term cost recovery mechanism like a regulatory asset base (RAB) model and incorporate regulatory adjustments to accommodate WTE into the Philippine Grid Code and other rules.
The ERC is also mandated to establish a regulation for minimum contract periods for power supply agreements involving pioneer WTE projects. The base term will be 25 years from the project’s commercial operation date, extendable based on the assessed economic life.
The DOE said it plans to explore alternatives for the government’s role in pioneer WTE projects, including public-private partnerships (PPP), joint ventures or full private sector-led development.
The agency said it would also study financing and funding mechanisms specific to WTE technologies in coordination with the PPP Center of the Philippines, the Department of Finance (DOF), the Department of Economy, Planning and Development (DEPDev), and other relevant agencies.
