EnergyOMNI's Perspectives｜Philippines Paused GEA-5 Auction

Edited by EnergyOMNI

The Philippine government announced the fifth Green Energy Auction (GEA-5) in November 2025, marking the country's first-ever offshore wind auction. However, in a surprising move, the government recently announced the suspension of GEA-5 after the bidding process had already begun.

GEA-5 is dedicated to offshore wind projects using fixed-bottom foundations, offering 3,300 MW of capacity with commercial operation targeted between 2028 and 2030. The Green Energy Auction Reserve (GEAR) price was set at PHP 11/kWh (approximately NT$5.96/kWh). Earlier this year, the Department of Energy (DOE) announced that developers could submit bids from March 2 to March 16, followed by a pre-qualification review from March 17 to July 3. The formal bidding phase was scheduled to run from July 27 to September 8, with winning bidders expected to be announced between September 14 and 26.

In early June, however, the DOE revised the auction timetable, postponing the bid submission period to May 25–July 1 and rescheduling the formal bidding to begin on August 27. The adjustment did not affect the award announcement schedule, which remained set for completion by September 23. Following the announcement of the winning bidders, the DOE plans to issue the first Notice of Award to successful developers between February 3 and February 23, 2027.

DOE Undersecretary Mylene Capongcol told the media in early June that nine companies had qualified to participate in GEA-5. She noted that although the DOE has awarded 95 Offshore Wind Service Contracts (OWSCs), only 20 contract holders expressed interest in joining GEA-5, and just nine projects passed the initial qualification review. The combined proposed capacity of these nine projects totals approximately 9.3 GW, far exceeding the 3.3 GW capacity available under the auction. Speaking on the sidelines of the Asia Clean Energy Forum, Capongcol said the DOE aimed to release the list of qualified bidders by July 3 so that the formal auction could proceed as scheduled in August.

However, on July 8, the DOE announced the suspension of the auction, with no timeline provided for when it will resume. DOE said the decision was made in response to mounting domestic and international challenges, allowing government agencies time to recalibrate the auction framework and address implementation issues that could affect project delivery. These include port infrastructure readiness, permitting requirements, environmental and port development costs, and potential disruptions to global supply chains, including those arising from the conflict in the Middle East this year.

According to the DOE, the recalibrated auction framework will be more transparent and implementation-ready, ensuring that the auction requirements are better aligned with the country's infrastructure readiness and the latest regulatory framework. The department added that it will release updated regulatory guidelines and a revised auction timetable in due course.

Analysts noted that while the GEAR price of PHP 11/kWh is financially attractive to investors, the substantial capital expenditure required for subsea transmission integration and specialized marine infrastructure, together with significant project execution risks, prompted the government to reassess the auction framework.