The Department of Energy (DOE) has formally launched the country’s first-ever offshore wind-exclusive green energy auction (GEA), marking a new push to tap the vast power potential off Philippine shores.
In a statement on Tuesday, the agency released the Notice of Auction (NOA) and the full Terms of Reference (TOR) for the program’s fifth bidding round, setting the stage for developers to vie for capacity under the landmark initiative.
‘This auction pushes offshore wind from potential to reality,’ Energy Secretary Sharon Garin said. ‘With clear rules, milestones and dedicated infrastructure planning, developers can now move from early studies to bankable projects.’
GEA-5
The latest round, known as GEA-5, will offer 3,300 megawatts (MW) of fixed-bottom offshore wind capacity for delivery between 2028 and 2030, marking the Philippines’ most significant step yet toward integrating large-scale offshore wind into the national power mix.
According to the DOE, the TOR details all qualification requirements, evaluation metrics, timelines, infrastructure obligations and processes that developers must meet to participate.
Officials said the final rules were shaped through extended coordination with government agencies and industry groups.
Green energy tariff
The DOE said the updated TOR introduces several refinements designed to ensure readiness and reliability as offshore wind development scales up.
The latest round is limited to fixed-bottom offshore wind projects, reflecting what the agency described as the current capacity of ports and the transmission system.
The rules also set a 20-year supply delivery period, with green energy tariff payments to begin only once a project is commissioned and registered with the Wholesale Electricity Spot Market.
A strengthened offshore wind infrastructure plan forms a core part of the TOR, laying out detailed expectations on grid connection studies, port availability, logistics planning and project milestones.
The DOE also clarified how ports will be allocated and scheduled, including rules on queuing, time-of-use and penalties, if developers contribute to bottlenecks or delays.
Financial safeguards
Financial safeguards were updated as well, with revised bid and performance bond requirements and adjustments to tariff entitlements depending on whether completion comes earlier or later than committed.
The TOR likewise outlines how force majeure claims and delays linked to port or transmission constraints will be validated.
To support financing, the DOE included defined lender step-in rights to help ensure continuity should developers face difficulties.
The auction is also the first to formally synchronize project milestones with government infrastructure preparations.
Winning developers
The DOE said GEA-5 would follow a milestone-driven system designed to track progress on transmission studies, permitting, port readiness, construction schedules and eventual energy delivery.
Coordination with the National Grid Corporation of the Philippines, National Transmission Corporation and Philippine Ports Authority is embedded in the rules.
Winning developers will be endorsed for priority processing of facility studies, Renewable Energy Purchase Agreements, grid connection agreements, and port scheduling.
Two installation ports-Pambujan Port in Camarines Norte and Sta. Clara Port in Batangas, have been identified for offshore wind deployment, although developers may propose private port arrangements subject to the DOE’s guidance.
‘Offshore wind can anchor our long-term clean energy transition. GEA-5 signals the Philippines is ready to compete for global investment,’ Garin said.