The Department of Energy (DOE) on June 30, 2025, convened a crucial virtual dialogue with key industry stakeholders to finalize the draft Terms of Reference (TOR) for the fifth round of the Green Energy Auction (GEA-5). This round marks a significant milestone as the Philippines’ first auction exclusively dedicated to offshore wind projects.
The two-hour discussion saw robust engagement between representatives from the DOE, various government agencies including the Department of Environment and Natural Resources – Forest Management Bureau, Department of Health – Bureau of Quarantine, Department of Labor and Employment Energy Regulatory Commission, Maritime Industry Authority, National Power Corporation, National Resource Water Board, National Transmission Corporation, Philippine Coast Guard, and Philippine Ports Authority, alongside private sector developers. The collaborative exchange aimed to ensure the auction framework is practical, transparent, and specifically tailored to the unique demands of offshore wind development.
A key outcome of the dialogue was the DOE’s confirmation that GEA-5 will adopt a more holistic and balanced approach to bid evaluation. Beyond mere price criteria, the assessment will now encompass technical readiness, permitting progress, grid connection status, delivery timeline, and risk management. Addressing developer concerns, the DOE emphasized the critical importance of early coordination with transmission network service providers and port authorities, encouraging developers to submit infrastructure plans at the earliest stages to facilitate inter-agency coordination, mitigate bottlenecks, and enhance accountability.
Furthermore, the DOE clarified that only bank guarantees, irrevocable standby letters of credit, or cash will be accepted as performance securities under GEA-5, with surety bonds no longer permitted. To safeguard the integrity of the auction process, the Department announced that delays exceeding three years due to developer default will lead to the revocation of the Certificate of Award and the Certificate of Endorsement for the Green Energy Tariff. However, lenders’ “step-in rights” will be recognized, allowing them to assume project control before any revocation occurs.
“The energy transition requires more than just policy; it demands implementable rules, open dialogue, and strong partnerships,” stated Undersecretary Rowena Cristina Guevara. “We are working to make the process more responsive to real project conditions and more consistent across the board.”
Participants lauded the constructive and solution-oriented nature of the discussion. With a target of 3,300 megawatts of offshore wind capacity between 2028 and 2030, GEA-5 is widely regarded as a critical step in building the nation’s renewable energy capacity, attracting vital investment, and enhancing long-term energy security.
The DOE reaffirmed its commitment to continuous stakeholder engagement to further improve implementation and provide clarity. It also disclosed plans to publish a long-term Green Energy Auction roadmap, which will outline indicative timelines and capacity targets for future auction rounds, underscoring its resolve to ensure the Green Energy Auction remains a fair, transparent, and effective platform in support of the country’s clean energy goals. Sustained coordination between the government and the private sector will be essential in delivering meaningful results.
