In the Philippine energy sector, ‘greed integration’ isn’t subtle anymore. It has been stamped in black and white with the jaw-dropping ₱11/kWh offshore wind price recently approved by the Energy Regulatory Commission (ERC). This rate applies to the targeted 3,300-megawatt capacity auction for fixed-bottom developments, effectively crowning the country as home to the world’s most outrageously priced offshore wind.

Is it true that this ₱11.00 per kWh did not emerge from rigorous regulatory calculations, but was instead conjured under pressure? Is it a gilded number designed to satisfy the ambitions of offshore wind developers, as supported by the Department of Energy?

Come on, ERC—where is your so-called balancing act? With retail electricity rates already tipping above ₱13 per kWh in the Manila Electric Co. (Meralco) franchise area, are you really hell-bent on pushing rates to ₱14 or ₱15/kWh? Regulators seem to be bending over backwards to hand developers a golden windfall while leaving Filipino consumers to shoulder the financial punishment. You are squeezing blood from a stone!

In its press release, the ERC stipulated: “The adjustment from the preliminary rate of ₱10.3859/kWh was primarily due to the updated capacity factor, inclusion of port rental, fishery compensation, and land acquisition or rental costs, as well as inflation and foreign exchange assumptions. Certain components were also reduced or removed, including the cost of equity and decommissioning costs.”

However, it is worth noting that there is not even a shred of institutionalized compensation for the fisherfolk who stand to lose their livelihoods. In other markets, governments mandate clear policies for remuneration to shield fishermen from the fallout of offshore wind projects.

Adding insult to injury, the Philippines is tossing aside global best practices. Policymakers are allowing planned offshore wind projects to sail blindly into uncharted waters, permitting developers to operate in a vacuum. There is no finalized Marine Spatial Planning (MSP) to mark ‘no-go zones,’ nor strictly mandated protection for biodiversity-sensitive domains prior to the capacity auction. For now, everyone is left guessing which fragile ecosystems and navigation channels will become collateral damage, while the Department of Environment and Natural Resources (DENR) struggles to update an MSP still reportedly rooted in outdated 1980s data.

Biodiversity isn’t just a box to tick; it’s a line investors in other energy markets dare not cross. When public outrage flares elsewhere, defying investors are swiftly shown the door—as seen in North American offshore wind projects. Yet, in the Philippines, energy policymakers act as if none of this matters.

A cautious scrutiny of global offshore wind tariffs makes it unmistakably clear: the Philippine tariff for fixed-bottom installations towers above the rest of the world.

Let’s put the Philippine rate in perspective. Our neighbors charge far less for their fixed-bottom developments:

- Vietnam: Ceiling rates are ₱8.70/kWh ($0.15) in the Northern region; ₱6.96/kWh ($0.12) in the South Central Region; and ₱8.12/kWh ($0.14) in the Southern region.

- Taiwan: The 20-year guaranteed feed-in-tariff is ₱8.33/kWh (NT$4.5085).

If our neighbors are deploying offshore wind at the ₱8.00 level, why is the Philippines charging nearly ₱3.00 more? Even the risk premium here wildly exceeds the typical ₱1.00–₱1.50/kWh that other power projects factor in.

Regarding the technology: the ERC claims it adjusted the initial estimate by banking on the use of Chinese technology. One can’t help but wonder what unknown cost components are being masked for the final tariff to climb so high.

What does offshore wind actually cost in China? In Hainan’s 2025–2026 auctions, the ceiling price was set at just ₱2.90–₱3.48/kWh ($0.05–$0.06). Even historically, earlier Fujian projects hovered between ₱5.80–₱6.38/kWh. This further exposes just how inflated our tariff really is.

Philippine developers argue that offshore wind is capital-intensive. But if the Chinese technology they prefer can deliver tariffs at the ₱3.00 level, how on earth is the Philippines approving a staggering ₱11.00? Even across Europe, offshore wind is significantly cheaper, making our rates shockingly out of step with global benchmarks:

- United Kingdom: Strike prices for fixed-bottom technology landed at roughly ₱7.00/kWh (£90.9 per MWh).

- France: The Centre Manche 2 tender was equivalent to ₱4.49/kWh; even their more challenging floating projects fetch only ₱7.48–₱10.21/kWh.

- Netherlands: Projects cleared between ₱3.67 and ₱4.90/kWh.

- Denmark: Historically, auctions have ranged from ₱5.78 to ₱9.60/kWh.

Even these carefully structured tenders pale in comparison to the Philippines’ ₱11.00 rate. It is also telling that Denmark and the Netherlands have seen auctions fail when governments refused to prop them up with direct subsidies—a cautionary tale the Philippines seems determined to ignore. The approved GEAR price is, in reality, a subsidy pulled directly from consumers' pockets.

To date, the Marcos administration is aggressively pursuing data center investments, with the DICT rolling out a roadmap for 18GW expansion to lure hyperscalers. This is part of a grand ambition to make the country a data center hub within ASEAN.

But here’s the kicker: the very investors the Philippines is chasing are waving red flags over our sky-high electricity rates, which threaten to turn the relocation dream into a costly nightmare.

Judging by the ERC’s recent approvals, electricity rates in the Philippines are on an unrelenting upward march. With the generation charge—the biggest slice of the bill—anchored by 10- to 20-year power supply agreements (PSAs), the message is unmistakable: don’t expect rates to drop anytime soon, perhaps not for a decade.

Even in the retail electricity market, contracts aren’t a bargain, especially since fixed-price agreements were shredded by past ERC rulings. This leaves consumers exposed to ever-rising rates.

In manufacturing, the Philippines has long lagged behind neighbors like Vietnam and Thailand. One painful reason is the incessantly rising electricity rates that strangle competitiveness.

If relentless rate hikes are our future, we may as well bid farewell to data center investments and kiss any hope of manufacturing expansion goodbye for good.