DOE pushes early infra submissions for GEA-5 offshore wind bids
The Department of Energy (DOE) is urging renewable energy (RE) developers to submit their infrastructure plans early for the fifth Green Energy Auction (GEA-5).
In a statement on Tuesday, July 1, the DOE said the early submission aims to facilitate inter-agency coordination and minimize the risk of project delays as bidding activities for the auction are set to begin.
The DOE recently held a stakeholder dialogue to discuss GEA-5’s terms of reference (TOR), which will primarily focus on auctioning offshore wind (OSW) projects.
During the dialogue, the DOE noted the importance of early coordination with the transmission network service provider and the port authority.
The DOE also called for coordinated efforts from potential bidders to anticipate and address development needs.
Developers are encouraged to submit infrastructure plans at the earliest stages to support inter-agency coordination, reduce bottlenecks, and enhance accountability, the DOE stated.
The Department also issued a warning: project delays exceeding three years due to developer default will result in the revocation of both the certificate of award (COA) and certificate of endorsement (COE) under the Green Energy Tariff program.
However, lenders will retain the right to exercise step-in rights to assume control of the project before revocation takes effect.
Representatives from government agencies and the private sector were present during the discussion, including the Department of Environment and Natural Resources-Forest Management Bureau (DENR-FMB), Department of Health-Bureau of Quarantine (DOH-BoQ), Department of Labor and Employment (DOLE), Energy Regulatory Commission (ERC), Maritime Industry Authority (MARINA), National Power Corp. (NPC), National Resource Water Board (NRWB), National Transmission Corp. (NTC), Philippine Coast Guard (PCG), and Philippine Ports Authority (PPA).
The DOE said that GEA-5 will adopt a more holistic and balanced approach that goes beyond just price criteria. This new framework will also consider factors such as technical readiness, smoother permitting progress, grid connection status, delivery timeline, and risk management.
Furthermore, the DOE clarified that performance securities under GEA-5 will now only be accepted in the form of bank guarantees, irrevocable standby letters of credit, or cash. Surety bonds will no longer be permitted.
In addition to these immediate changes, the DOE is planning to publish a long-term GEA roadmap. This roadmap will outline indicative timelines and capacity targets for future auctions, providing clearer guidance for developers.
Energy Undersecretary Rowena Guevara assured partners that the government is actively working to enhance the viability of the auction process. “We are working to make the process more responsive to real project conditions and more consistent across the board,” she stated.
GEA-5 targets approximately 3,300 megawatts (MW), or about 3.3 gigawatts (GW), of OSW capacity to be delivered between 2028 and 2030.