First offshore wind auction set for August

THE FIRST green energy auction (GEA) round dedicated to offshore wind power projects is set to take place on Aug. 27, according to the Department of Energy (DoE).

The auction was scheduled after the Energy Regulatory Commission issued the green energy auction reserve (GEAR) price to guide bidders. It was set at P11 per kilowatt-hour.

Interested parties have 14 days to register starting March 2, with the list of qualified bidders scheduled to be published on July 3, the DoE said in a statement on Monday.

A pre-bid conference will be held on July 16 to outline the bidding rules and technical, and financial requirements for prospective developers.

After the auction proper, the bids will undergo evaluation by the Bids Evaluation and Awards Committee, followed by validation by the technical working group.

The list of winning bidders will be announced starting Sept. 23.

The fifth GEA (GEA-5) round focuses on fixed-bottom offshore wind technology, with an installation target of 3,300 megawatts and a delivery commencement period of 2028 to 2030.

“GEA-5 marks a major stride towards a more sustainable energy future for the Philippines,” the DoE said. “The initiative aims to expand the share of renewable energy in the national energy mix, strengthen grid reliability, and enhance long-term energy security through large-scale offshore wind development.”

The Philippines is hoping to start generating offshore wind power by 2028 in the course of diversifying its energy sources and reducing dependence on fossil fuels.

It expects offshore wind to play a key role in achieving the target of increasing renewable energy’s share in the power mix to 35% by 2030 and 50% by 2040. — Sheldeen Joy Talavera