Offshore wind auction now set for next year

THE Department of Energy (DoE) said it moved the auction for the fifth green energy auction (GEA-5) round to next year.

GEA-5, the first auction dedicated solely to offshore wind projects, is now expected to take place within the first half of 2026, or 190 days after the delayed release of the notice of auction on Tuesday.

“This auction pushes offshore wind from potential to reality. With clear rules, milestones, and dedicated infrastructure planning, developers can now move from early studies to bankable projects,” Energy Secretary Sharon S. Garin said in a statement.

GEA-5 focuses on fixed-bottom offshore wind technology, with an installation target of 3.3 gigawatts (GW) and delivery set for 2028-2030.

Along with the notice of auction, the DoE also issued the terms of reference (ToR) outlining the complete requirements, timelines, and evaluation procedures for participating developers.

According to the ToR, the auction is focused on fixed-bottom offshore wind and must deliver power over 20 years. It also contains updates on the bid bond, performance bonds, and green energy tariff entitlement rules.

Certificates of award are likely to be issued starting in 2027.

“GEA-5 adopts a coordinated milestone approach between developers and government agencies, tracking progress on grid studies, port readiness, permitting, construction, and delivery timelines,” the DoE said.

To guide developers, the Energy Regulatory Commission is required to release the green energy auction reserve (GEAR) price 30 calendar days after the release of the notice of auction. The GEAR price is the maximum price in pesos per kilowatt-hour that will serve as the ceiling price for the auction.

The government identified Pambujan Port in Camarines Norte and Sta. Clara Port in Batangas as ports designated to service the industry, with guidance for developers opting for private port arrangements.

The DoE said the final ToR emerged from consultations with the National Grid Corp. of the Philippines, the National Transmission Corp., the Philippine Ports Authority and other agencies.

According to the World Bank’s 2022 Offshore Wind Roadmap for the Philippines, the country’s offshore wind resources have the potential to generate over 178 GW.

The DoE expects offshore wind to play a key role in achieving the Philippine target of increasing renewable energy’s share in the power mix to 35% by 2030 and 50% by 2040.

“Offshore wind can anchor our long-term clean energy transition. GEA-5 signals the Philippines is ready to compete for global investment,” Ms. Garin said. — Sheldeen Joy Talavera