The Philippines has taken a crucial step toward unlocking its vast offshore wind potential, with the energy regulator setting a preliminary price ceiling for the country's first-ever auction dedicated to the technology.
Preliminary Price Cap and Auction Details
In a significant move, the Energy Regulatory Commission (ERC) has approved a draft Green Energy Auction Reserve (GEAR) price of P10.3859 per kilowatt-hour for fixed-bottom offshore wind projects. This price will serve as the preliminary ceiling for the fifth round of the government's Green Energy Auction Program (GEA-5).
The upcoming auction is specifically designed for fixed-bottom offshore wind projects with power delivery scheduled between 2028 and 2030. The government has set an ambitious total installation target of 3,300 megawatts (MW) for this round, signaling a major push for this new renewable energy source.
Public Consultation and Final Approval Timeline
The proposed price cap is not yet final. The ERC will open the draft for public consultation starting December 12, 2025, and will accept comments until December 19, 2025.
To ensure nationwide stakeholder input, the commission has scheduled public consultations on January 5, 2026, in Luzon, and on January 6, 2026, in the Visayas and Mindanao. Following these consultations, the ERC will hold its final deliberation on January 14, 2026, where the reserve price will be officially confirmed.
Alongside the draft price, the Commission also approved a preliminary formula for a one-time price indexation mechanism, which will be discussed in the same public consultation process.
A Milestone for Philippine Energy Independence
ERC Chairperson Nino Juan hailed the upcoming auction as a "milestone in achieving the Philippine Energy Plan." He emphasized that this marks the first-time deployment of offshore wind technology in the country, which boasts an estimated technical potential exceeding 68 gigawatts (GW).
This specialized auction is a core component of the government's broader strategy to rapidly expand the nation's renewable energy capacity. The primary goals are to enhance energy security and reduce heavy reliance on imported fossil fuels, which are often subject to volatile global market prices.
The ERC's role in setting the reserve price is mandated by policy, ensuring transparency and competitive bidding in the renewable energy sector. The success of GEA-5 could pave the way for more offshore wind developments, harnessing the country's long coastline and strong wind resources for a cleaner, more independent power future.
