The Department of Energy (DOE) is planning a separate ‘auction call’ for the power supply agreements (PSAs) to be awarded to offshore wind investors via the Green Energy Auction Program (GEAP) of the government. According to Atty Marissa P. Cerezo, director of the Renewable Energy Management Bureau of the DOE, many investors have been batting for a "quota" or "mandatory pie" to be allotted for offshore wind as a fraction of the overall capacity being set under the Renewable Portfolio Standards (RPS), a policy enshrined under the Renewable Energy Act. The RPS edict requires industry participants, primarily the distribution utilities, to secure prescribed percentage of their supply from RE-generated capacities; and the increment was mandated by the DOE at 2.52-percent annually. The energy official said the strategy being studied by the department will be “separate auction” for offshore wind capacity’; although she qualified that the actual volume has not been decided yet. Similar to the other renewable energy (RE) technologies being offered under GEAP, she emphasized that the ‘reserve price’ shall also be drawn up by the Energy Regulatory Commission (ERC) for the offshore wind capacity that will be placed on tender. On the initial years, Cerezo stated that the bidding target will just be purely for offshore wind capacity; but when storage will already reach higher scale of commercial maturity and advancements, the next game plan could be coupling between OSW and energy storage, including that of green hydrogen. When the government opened up the RE sector for 100-percent foreign ownership four months ago, the DOE acknowledged that majority of the interested investors have been setting their sights on offshore wind farm projects. Over 50 service contracts had already been awarded by the DOE to various investors in the OSW investment space; and the actual megawatts are anticipated for delivery 5-7 years down the road. In a study undertaken by the World Bank Group relating to investment hurdles for offshore wind in the Philippines, it listed major concerns yet to be addressed squarely – mainly those on energy cost; transmission or grid integration; environmental and social (E&S) impacts; limited local supply chain; financing and bankability of projects. At this stage, the levelized cost of electricity (LCOE) for offshore wind is still way higher versus other RE technologies, but investors are hoping that this will track downtrend in the years ahead. And for the industry to triumph over that, the World Bank qualified that the technology “could become competitive with the cost of conventional, thermal generation through large market-scale and competition.” As noted by developers of offshore wind projects, the rule of thumb on upfront capital cost for this technology installation is relatively expensive at $2.5 million per megawatt if compared to solar which is now at less than $1.0 million per megawatt. Transmission of generated capacity has also been cited as a dilemma, with the World Bank pointing out that “to connect projects at large scales sufficient to drive down the cost of energy, transmission grid upgrades and strengthening will be required to deliver power to demand centers.” The World Bank similarly underscored that massive offshore wind installations could yield “risks of adverse environmental and social impacts, especially when cumulative impacts from multiple projects are considered.” In view of that then, it propounded that “data, stakeholder engagement, careful planning and robust regulations will be required to manage this (E&S impact).” Additionally, the World Bank conveyed that “despite the Philippines’ strong industry, a comprehensive local supply chain will not be feasible in the short and medium-term and many components will need to be imported.” On project financing aspect, the bank highlighted that “the unique and high risks associated with offshore wind will require careful risk management and mitigation measures to ensure bankability and minimize the cost of capital.”