DOE opens first OSW auction; 3,300 MW up for grabs

The Department of Energy (DOE) is seeking bidders to raise 3,300 megawatts of fixed-bottom offshore wind (OSW) capacity through the Fifth Round of the Green Energy Auction (GEA-5), following the release of the official Notice of Auction (NOA) and Terms of Reference (TOR).

The TOR establishes the country’s first competitive auction dedicated solely to fixed-bottom OSW projects, covering deliveries between 2028 and 2030.

“This auction pushes offshore wind from potential to reality. With clear rules, milestones, and dedicated infrastructure planning, developers can now move from early studies to bankable projects,” Energy Secretary Sharon S. Garin said Tuesday.

“Offshore wind can anchor our long-term clean energy transition. GEA-5 signals the Philippines is ready to compete for global investment,” she added.

With the NOA and TOR issued, developers may begin preparing registration requirements, including wind resource assessments, infrastructure development plans, and corporate documents. The agency said it will announce the dates for the Pre-Bid Conference and formal registration period on its website.

Under the TOR, only fixed-bottom offshore wind projects are eligible, consistent with current grid and port readiness. 

The framework introduces a 20-year Supply Delivery Period, with Green Energy Tariff payments beginning once a project is commissioned and registered with the Wholesale Electricity Spot Market. 

Building on this structure, the TOR also expands infrastructure planning requirements by detailing expectations for grid connection, port access, logistics pathways, and milestone monitoring.

These guidelines are reinforced by additional provisions on port queuing, time-of-use, and penalties for delays, alongside updated Bid Bond and Performance Bond requirements and adjustments for early or late commissioning. 

The TOR further explains how Force Majeure and infrastructure-related delays will be assessed and grants lenders step-in right to support financing and ensure project continuity.

GEA-5 is the first auction round to synchronize developer milestones with government efforts to ready ports and transmission facilities. 

According to the DOE, this coordinated approach aligns grid studies, port preparation, permitting stages, construction progress, and delivery targets to keep private development on pace with public infrastructure.

To support this alignment, the TOR outlines coordination mechanisms with NGCP, TransCo, the Philippine Ports Authority, and other agencies. Winning bidders will receive priority endorsements for facility studies, Renewable Energy Purchase Agreement execution, grid connection approvals, and port scheduling. 

The DOE has designated Pambujan Port in Camarines Norte and Sta. Clara Port in Batangas as installation ports, while also issuing guidelines for developers opting to use private facilities.