Melbourne, Australia – The Philippines’ commitment to offshore wind is about to face its ultimate test. In the coming months, the country’s green energy auction (GEA) for this technology will kick off, separating the “brave soul investors” from those who will quit before the competition even begins.

This week at the APAC Wind Energy Summit in Australia, a delegation from the Philippines, led by the Department of Energy (DOE), is set to send a clear message to its Asia-Pacific peers: the country is ready to face its “acid test” for targeted offshore wind projects.

In a plenary session co-hosted by the World Bank Group, key stakeholders from the Philippines—including the DOE, Global Wind Energy Council (GWEC)-Philippines, Board of Investments (BOI), Energy Regulatory Commission (ERC), and the Ocean Energy Pathway—will share how the nation has been navigating the choppy waters of offshore wind development.

As GWEC puts it, the industry is “entering a defining moment—where strong political will, private sector dynamism, strong public-private partnerships, community engagement, and innovative technology can align to transform this vast resource into clean, reliable power for generations.”

Ann Margret Francisco, country manager of GWEC Philippines, noted, “the strong Philippine delegation will carry this momentum forward—sharing our progress, learning from global peers, and further positioning the Philippines as a leading market for renewable energy in Southeast Asia.”

GWEC acknowledged that “while challenges remain—from streamlining permitting to upgrading ports, grids, and supply chains—the building blocks for success are in place.”

Make-or-break moment for offshore wind

The DOE recently wrapped up its fourth green energy auction for renewable energy (RE) capacities, a success cheered by the industry. Most of the offered capacities, particularly for solar and onshore wind, were quickly secured, largely thanks to the higher rates approved by the ERC.

While the last GEA was a clear win, offshore wind presents an entirely different, herculean challenge. Installations for this technology are far more complex, requiring a careful balance of protecting the livelihoods of fisherfolk, preserving vulnerable marine ecosystems, and securing a robust supply chain and port infrastructure. At the heart of it all looms a major question: how will the costs of this technology impact consumers’ pockets?

The DOE is still finalizing its tendering guidelines, but the real challenge lies in how the government will price the technology. The ERC must strike a delicate balance between attracting investors and preventing capital flows from pushing pass-on tariffs to unreasonable levels for ratepayers.

Even now, potential lenders for offshore wind projects in the Philippines are struggling to find a viable financing model. Some banks are proposing longer contracts, beyond the standard 20-year power supply agreements (PSAs), as a way to offset high upfront costs and prevent “rate shock” for consumers.

At the summit, a session on financing offshore wind projects will focus on innovative funding models, risk-sharing solutions, and the vital role of public-private partnerships (PPPs) in powering large-scale wind projects. Speakers will dissect how macroeconomic factors, supportive regulatory frameworks, and dynamic market conditions can fuel investment, offering valuable insights on how to reduce capital costs and unlock transformative investment in the wind sector.

GWEC highlighted that while the Asia-Pacific region is primed for significant wind energy expansion, “securing investment and effectively managing financial risks are key to driving the sector's growth.” It qualified that “despite challenges such as evolving policy landscapes, project bankability concerns, and high development costs, there are ample opportunities for investors, developers, and financiers to overcome these hurdles.”

Beyond the headwinds of rate-setting and financing, the Philippines is also falling short in building essential port support infrastructure, with initial studies failing to deliver on expectations. At the same time, critical “no-go zones” for offshore wind, which should have been mapped out through marine spatial planning (MSP), remain conspicuously absent or inadequately communicated to investors.

Global roadblocks for offshore wind projects

The issues surrounding offshore wind development in the Philippines are not unique; even the most mature markets are weighed down by the same relentless obstacles.

Across global markets, the offshore wind sector faces a barrage of predicaments: fragmented regulations, sky-high financing costs, “not-in-my-backyard” (NIMBY) resistance from coastal communities, grid integration nightmares, a fractured supply chain, and fears of environmental damage—not only at project sites but to broader marine ecosystems, fishing industries, and critical navigation channels.

The treacherous currents of offshore wind development in major markets like the United States and Canada have even driven some investors into courtrooms, with a number of projects either significantly delayed or scrapped. Meanwhile, some European markets, such as the Netherlands, are taking a more measured approach, weaving non-price criteria into their tendering process where ecological protection plays a pivotal role in selecting winning bids.

The Philippines is still learning from its global counterparts on how to navigate the intricate landscape of offshore wind development, figuring out what can be applied at home. Meanwhile, for the most crucial stakeholders—the consumers—it’s a waiting game, hoping that both investors and the government will make the right calls.

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