EnergyOMNI's Perspectives｜Philippines Launches GEA-5　Strong Market Participation Signaling

Edited by EnergyOMNI

The Philippines has recently launched its fifth Green Energy Auction (Green Energy Auction 5, GEA-5), marking the country's first offshore wind tender. The auction is open to fixed-bottom offshore wind projects, with a total capacity of 3,300 MW. Projects are targeted for completion between 2028 and 2030, and the Green Energy Auction Reserve (GEAR) price ceiling is set at PHP 11/kWh (approximately TWD 5.96/kWh).

GEA-5 opened for bid submissions from March 2 to March 16, followed by a pre-bid evaluation phase from March 17 to July 3. The auction proper will take place from July 27 to September 8. Results are expected to be announced between September 14 and 26. Winning developers will be required to submit post-award documentation between September 25 and May 26 of the following year, with the Department of Energy (DOE) expected to issue Notices of Award between February 2 and July 14, 2027.

With the launch of GEA-5, Global Wind Energy Council Asia-Pacific Director Ann Margret Francisco noted that there are strong signals of market participation, with several active offshore wind developers having already submitted their bid documents to the DOE.

A number of both local and international developers have expressed interest in participating. Denmark's Copenhagen Infrastructure Partners has partnered with ACEN, part of the Ayala Group, to jointly develop the 1 GW San Miguel Bay project, and has indicated openness to bringing in additional investors. CIP executives met with Philippine President Ferdinand Marcos Jr. in November 2025 and announced plans to invest USD 3 billion in the Philippine market.

Meanwhile, the BuhaWind project, a joint venture between PetroGreen Energy Corp. and Copenhagen Energy, signed a memorandum of understanding with Mingyang Smart Energy in November last year to study the feasibility of deploying Mingyang turbines in Philippine offshore projects. The BuhaWind group also intends to participate in the GEA-5 auction.

Beyond market participation, a key technical concern is whether offshore wind can be deployed in the Philippines' typhoon-prone environment. Francisco pointed to examples in Japan and Taiwan, arguing that offshore wind development in the Philippines is feasible. Both countries, located north of the Philippines, have already adopted typhoon-resilient turbine designs. Advances in turbine and foundation engineering have significantly improved the ability of offshore wind infrastructure to withstand strong winds and waves. In addition to typhoons, seismic risks must also be considered. Japan and Taiwan, both exposed to typhoons and earthquakes, provide proven models. The key lies in adapting global standards to local conditions in project design.

On financing, Francisco advocates for the use of blended finance to mitigate risks. Participation from international banks with offshore wind experience, such as HSBC and Deutsche Bank, alongside multilateral institutions like Asian Development Bank, World Bank, and Asian Infrastructure Investment Bank, could deliver two key benefits. First, multilaterals can provide lower-cost capital, which, when blended with local financing, reduces overall interest rates and project costs. Second, their participation can attract more local banks, helping to scale up available capital. This applies not only to wind farm development but also to supporting infrastructure such as ports, grid connections, and supply chains.