The Department of Energy (DOE) convened a virtual dialogue yesterday, 30 June 2025, with key industry stakeholders to further refine the draft Terms of Reference (TOR) for the fifth round of the Green Energy Auction (GEA-5), the Philippines’ first auction dedicated exclusively for offshore wind projects.
During the two-hour discussion, representatives from the DOE, other government agencies such as 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, Philippine Ports Authority, and the private sector engaged in a substantive exchange of views to ensure that the auction framework is practical, transparent, and well-aligned with the unique requirements of offshore wind development.
The DOE confirmed that GEA 5 will adopt a more holistic and balanced approach to bid evaluation, expanding beyond price criteria to include technical readiness, permitting progress, grid connection status, delivery timeline, and risk management. Responding to concerns raised by developers, the DOE underscored the importance of early coordination with the transmission network service provider and port authority. Developers are encouraged to submit infrastructure plans at the earliest stages to support inter-agency coordination, reduce bottlenecks, and enhance accountability.
The DOE also clarified that only bank guarantees, irrevocable standby letters of credit, or cash will be accepted as performance securities under GEA-5. Surety bonds will no longer be permitted.
To safeguard the integrity of the auction process, the DOE announced that delays exceeding three years due to developer default will result in 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 Department 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.
“The energy transition requires more than just policy, it demands implementable rules, open dialogue, and strong partnerships,” said Undersecretary Rowena Cristina Guevara. “We are working to make the process more responsive to real project conditions and more consistent across the board.”
Participants welcomed the constructive and solution-oriented tone of the discussion. With 3,300 megawatts of offshore wind capacity targeted between 2028 and 2030, GEA 5 is regarded as a critical step in building renewable energy capacity, attracting investment, and enhancing long-term energy security.
The DOE underscored its resolve to ensure that 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. ###