Manila: Energy Secretary Sharon Garin expressed optimism for the country’s clean energy transition as the Department of Energy (DOE) issued a notice of auction and the terms of reference (TOR) for the fifth green energy auction (GEA-5).
According to Philippines News Agency, GEA-5 paves the way for the first competitive auction specifically for fixed-bottom offshore wind (OSW) projects, as announced by the DOE in a press release on Tuesday. Under this auction, 3,300 megawatts (MW) will be offered for delivery between 2028 and 2030. The DOE explained that the TOR outlines the complete requirements, timelines, and evaluation procedures for participating developers.
“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,” Garin said. “Offshore wind can anchor our long-term clean energy transition. GEA-5 signals the Philippines is ready to compete for global investment.”
The DOE said the Pambujan Port in Camarines Norte and Sta. Clara Port in Batangas have been identified as installation ports, with guidance for developers opting for private port arrangements. The TOR introduced several refinements, such as accepting only fixed-bottom offshore projects for auction, ensuring these projects are consistent with current grid and port readiness.
Winning bidders will be given a 20-year supply delivery period, with green energy tariff (GET) payments commencing with commissioning and wholesale electricity spot market (WESM) registration. The DOE has strengthened the offshore wind infrastructure plan, addressing grid connection, port use, logistics, and milestones. Clear port access and queuing rules have been established, including priority order, time-of-use, and delay penalties. The updated bid bond, performance bond, and GET entitlement rules include adjustments for early or delayed commissioning. Provisions for force majeure and infrastructure-related delays will be subject to DOE validation, with defined lender step-in rights to support financing and project continuity.
The DOE stated it has collaborated with the National Grid Corp. of the Philippines, National Transmission Corp., and the Philippine Ports Authority (PPA), among others, for GEA-5. This auction is the pioneer initiative formally aligned with port and transmission preparation alongside project milestones.
