The Energy Regulatory Commission (ERC) has approved an P11.00 per kilowatt-hour (kWh) reserve price for offshore wind projects under the fifth round of the Department of Energy’s Green Energy Auction Program (GEA-5).

In a statement over the weekend, the regulator said the Green Energy Auction Reserve price will serve as the benchmark and ceiling for bids in the country’s first large-scale offshore wind auction.

The rate will guide how much utilities may pay for offshore wind capacity, costs that could eventually be reflected in consumers’ electricity bills.

The approved rate is higher than the preliminary P10.3859 per kWh after the ERC revised assumptions on capacity factor and incorporated port rental, fishery compensation, land acquisition or rental costs, as well as inflation and foreign exchange assumptions.

Some components, including the cost of equity and decommissioning costs, were reduced or removed.

Alongside the pricing decision, the ERC opened additional consultations under ERC Case No. 2025-023 RM to finalize tariff indexation rules for GEA-5.

The mechanism will determine how tariffs may be adjusted between project award and commercial operation to reflect cost and foreign exchange movements.

“Indexation is a one-time tariff adjustment mechanism that accounts for cost changes between project award and commercial operation pursuant to the Department of Energy Circular DC2025-06-0009, entitled Amendment to Department Circular No. DC2025-03-0004 titled, Providing the Revised Guidelines for the Green Energy Auction Program,” the ERC said.

“Stakeholder feedback will help ensure that the indexation framework reflects project cost realities while maintaining consumer protection,” it added.

GEA-5 seeks to procure 3,300 megawatts of fixed-bottom offshore wind capacity for delivery between 2028 and 2030 under the government’s renewable energy procurement program.

A third round of public consultations on the one-time indexation is scheduled on 9 March at the ERC’s Multi-Purpose Hall and on 10 March for Visayas and Mindanao stakeholders via a virtual platform.

The regulator is expected to finalize the implementing guidelines for GEAP Round 5 after the consultations.