MANILA, Philippines — The Department of Energy (DOE) is set to launch the green energy auction (GEA) for offshore wind projects as early as July 2025, aiming to deliver the first kilowatts by 2028.
The launch of GEA-5 in the third quarter next year would bolster the development of offshore wind projects in the country, setting a clear path for developers and other stakeholders, the DOE said.
“As a cornerstone of the Philippine Energy Plan 2023-2050, GEA-5 exemplifies the government’s unwavering commitment to renewable energy (RE) deployment, energy security and the nation’s energy transition agenda,” it said.
The DOE has yet to issue the notice of auction and terms of reference outlining the timeline, procedures and guidelines for participation in the GEA-5.
But it is currently assessing position papers from stakeholders to integrate insights. This is in line with efforts to increase transparency and efficiency of the auction process.
The DOE said the GEA-5 is expected to help offshore wind developers secure market access, ensuring long-term demand for their generation capacities.
The auction round is also seen as a timeline guide for stakeholders, including the National Grid Corp. of the Philippines, the Philippine Ports Authority (PPA) and the Department of Environment and Natural Resources (DENR).
Likewise, GEA-5 bodes well for the country’s energy transition push, particularly its target of diversifying the energy mix and reducing its dependence on fossil fuels.
The government wants to scale up the share of renewables in the country’s power generation mix to 35 percent by 2030 and 50 percent by 2040 from the current 22 percent.
“This initiative is also anticipated to generate significant economic benefits, including local job creation and industrial growth within the (RE) sector, further aligning with the Philippines’ commitment to a sustainable and inclusive energy future,” the DOE said.
As of December, the DOE had awarded 92 offshore wind contracts with a total capacity of 68,656 megawatts (MW).
To further support offshore wind development, the DOE has teamed up with the PPA to modernize the Currimao port in Ilocos Norte, the Port of Batangas and the Jose Panganiban port in Camarines Norte.
The DOE has also partnered with the DENR to fast-track the exploration, utilization and construction of offshore wind projects by accelerating the issuance of permits.
Apart from the GEA-5, the agency is also set to conduct two more auction rounds next year.