The Philippines is poised to make history with the launch of its first offshore wind auction under the Green Energy Auction Program 5 (GEA-5), targeting 3.3 gigawatts (GW) of fixed-bottom offshore wind capacity for delivery between 2028 and 2030. This marks a critical step forward in the country’s renewable energy ambitions and underscores the government’s commitment to harnessing its vast offshore wind potential.
In a significant development, the Department of Energy (DOE) has released the Terms of Reference (TOR) for the auction, incorporating several key recommendations from the Offshore Wind Technical Working Group (TWG), which is co-led by the Global Wind Energy Council (GWEC) and the Wind Energy Developers Association of the Philippines (WEDAP).
Ann Margret Francisco, GWEC’s Country Manager for the Philippines, welcomed the release of the TOR and the collaborative approach taken by the DOE:
“We’re pleased by how things are moving in the Philippines. Many of the recommendations from the GWEC- and WEDAP-led Offshore Wind Technical Working Group for a successful GEA-5 have been included in the Terms of Reference released by the Department of Energy. Since Q4 2024, the TWG has been working consistently through regular industry consultations and engagements with key government bodies, including the Department of Energy, Energy Regulatory Commission, the Philippine Ports Authority, TransCo, and other agencies, to help shape a successful offshore wind auction this July.”
Key provisions in the TOR include:
- Government commitment to essential infrastructure, including port and grid development to support offshore wind deployment.
- Lender step-in rights and a 3-year grace period for developers, improving risk allocation and enhancing bankability.
- Lower bid and performance bond requirements, with updated eligibility criteria to encourage credible yet broad participation.
- A one-time foreign exchange adjustment between the award and commercial operation date (COD), with continued advocacy for annual adjustments to ensure long-term financial stability.
Additionally, the TWG-proposed work program has been accepted as the guiding framework for project development timelines. The auction process is expected to conclude with awards by the end of 2025.
This first offshore wind auction represents a watershed moment in the Philippines’ clean energy transition and highlights the vital role of collaborative policymaking in enabling large-scale renewable energy development.
