EnergyOMNI's Perspectives｜Philippines Launches Its First Offshore Wind Auction

Edited by EnergyOMNI

On November 25, 2025, the Philippine government released the auction notice and bidding documents for the fifth Green Energy Auction (Green Energy Auction 5, GEA-5). This marks the country's first offshore wind tender, covering fixed-bottom offshore wind projects with a total auctioned capacity of 3,300 MW, targeting project completion between 2028 and 2030. The Department of Energy (DOE) opened registration for developers on 2 March, with winning bidders due to be announced on 22 September.

Under the rules, the Green Energy Auction Reserve (GEAR), or price ceiling, is set by the Energy Regulatory Commission (ERC). On December 11, the ERC initially announced a preliminary price cap of Php 10.3859 per kWh (approximately NT$5.50 per kWh).

The Asian Development Bank (ADB), based on 2023 cost data, had previously estimated that the price ceiling for fixed-bottom offshore wind projects expected to come online by 2030 should range between Php 11 and Php 15 per kWh. More recently, on February 22, the ERC officially raised the price ceiling to Php 11 per kWh (approximately NT$5.96 per kWh). Once the auction formally proceeds, winning bidders will sell electricity under a Green Energy Tariff (GET) for 20 years.

The ERC stated that the final price ceiling reflects updated wind capacity factors, inflation and foreign exchange assumptions, and incorporates additional costs such as port lease fees, fisheries compensation, and land acquisition or leasing expenses. Michael Ricafort, Chief Economist at Rizal Commercial Banking Corporation, noted that approving a higher price cap makes GEA-5 "more attractive" for new renewable energy investments.

To date, the Philippine Department of Energy has awarded 92 offshore wind service contracts, representing a total potential installed capacity of more than 65 GW. These service contracts are valid for 25 years and grant developers exclusive rights. During the initial five-year pre-development phase, developers may conduct site surveys, environmental impact assessments, secure necessary permits, and reach a final investment decision. Upon obtaining development approval, projects proceed to construction and operations.

DOE will begin evaluating registered applicants on 17 March, with a formal list of qualified bidders expected by 3 July. In January, Energy Undersecretary Giovanni Carlo Bacordo stated that the first offshore wind auction under GEA-5 would offer only 3.3 GW due primarily to grid and port constraints, but another green energy auction (GEA) for offshore wind technology may be held to cater to more awarded service contracts.

At the "Energyear Philippines 2026" forum held in Manila in January, industry representatives said that GEA-5 signals the transition of the Philippine offshore wind market from planning to execution and will test the country's readiness. Rune Damgaard, Philippines Country Manager of Copenhagen Infrastructure Partners (CIP), emphasized that offshore wind development depends on coordination across many institutions. It is a long-term ecosystem that requires teamwork amongst regulators, grid operators, ports, and developers.