The Philippines is formalizing its push to integrate waste-to-energy (WTE) into the national electricity mix as part of broader clean energy objectives.
The Department of Energy (DOE) issued Circular No. DC 2025-11-0026, establishing a regulatory framework for the commercial development, grid integration, and oversight of WTE facilities. The policy designates “pioneer WTE projects”—those processing municipal solid waste (MSW) from highly urbanized cities or clustered local government units (LGUs) and reaching commercial operations by March 31, 2028—for preferential permitting, priority dispatch, and other incentives.
Under the framework, pioneer WTE projects are automatically recognized as energy projects of national significance, enabling them to bypass the Competitive Selection Process for non-GEAP participants. The DOE will also coordinate feedstock allocation through auction rounds, ensuring that multiple projects only source MSW from the same HUC or LGU cluster if sufficient volumes exist or alternative supply agreements are secured.
The Energy Regulatory Commission (ERC) is tasked with establishing the pricing methodology for these projects, including reference tariffs, long-term cost recovery mechanisms such as a regulatory asset base model, and integration into the Philippine Grid Code. Power supply agreements for pioneer WTE projects will have a base contract term of 25 years, extendable depending on economic life assessments, ensuring project bankability and long-term stability.
The DOE is exploring multiple development models, including public-private partnerships, joint ventures, or fully private-led projects, and is coordinating with agencies such as the Department of Finance, PPP Center, and DEPDev to evaluate financing mechanisms tailored for WTE. By combining preferential dispatch, regulatory certainty, and strategic partnerships, the Philippines is positioning WTE as a viable solution to simultaneously reduce urban waste pressures and expand renewable electricity supply, aligning with the Clean Energy Scenario of the national energy plan.
