The Department of Energy (DOE) is adopting a more holistic approach to evaluating bids under the fifth Green Energy Auction (GEA-5), moving beyond price to include technical readiness, permitting progress, grid connection, delivery timelines, and risk management.

Following a dialogue held on Monday, the DOE said the auction framework will be “practical, transparent, and well-aligned with the unique requirements of offshore wind development.” 

GEA-5 is the Philippines’ first auction dedicated exclusively to offshore wind projects, which targets to install 3,300 megawatts of fixed-bottom offshore wind capacity, with power delivery expected between 2028 and 2030.

The DOE emphasized early coordination with the transmission service provider and port authority, encouraging developers to submit infrastructure plans early to reduce bottlenecks and improve accountability.

“The energy transition requires more than just policy; it demands implementable rules, open dialogue, and strong partnerships. We are working to make the process more responsive to real project conditions and more consistent across the board,” said Undersecretary Rowena Cristina Guevara.

Only bank guarantees, irrevocable standby letters of credit, or cash will be accepted as performance securities, the DOE said. Surety bonds will no longer be allowed.

Delays of more than 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, the DOE said lenders’ “step-in rights” will be recognized, allowing them to take control before revocation.

To improve clarity and long-term planning, the DOE will release a Green Energy Auction roadmap with indicative timelines and capacity targets for future rounds.