ERC Clears Price Cap for Offshore Wind, Marking Milestone In RE Development
- December 22, 2025
The Energy Regulatory Commission (ERC) has approved a maximum Green Energy Auction Reserve (GEAR) price of ₱10.3859 per kilowatt-hour (kWh) for fixed-bottom offshore wind projects under the fifth round of the Green Energy Auction Program (GEA-5), marking a key milestone in the country’s transition toward renewable energy.
The ceiling price serves as the upper limit for bids in long-term power supply contracts, ensuring competitive and transparent rates among developers of emerging clean energy technologies. Fixed-bottom offshore wind systems, a globally proven method for power generation in shallow waters up to 75 meters deep, are set to debut in the country through this auction.
The price determination followed the Department of Energy’s (DoE) release last month of the Notice of Auction and Terms of Reference (TOR) for GEA-5, which outlines participation requirements, evaluation methods, and the auction timeline. The ERC is mandated to set the GEAR price for each auction round.
Expanding Offshore Wind Prospects
The GEA program is a government-led initiative designed to accelerate investment in renewable energy through competitive bidding. It supports the country’s targets of 35% renewable energy share by 2030 and 50% by 2040, covering solar, wind, hydro, and battery storage projects.
For GEA-5, a total of 3.3 gigawatts (GW) is being offered for delivery between 2028 and 2030, with a focus on offshore wind capacity. According to the ERC, this auction represents a “milestone” in implementing the Philippine Energy Plan.
“This technology will be a first in the country, with a total potential capacity of more than 68 gigawatts,” ERC Chairman Nino Juan said in a statement.
The draft GEAR price was opened for public consultation on Dec. 12, with comments accepted until Dec. 19. Regional consultations are scheduled on Jan. 5, 2026, in Luzon and Jan. 6 in the Visayas and Mindanao, before ERC finalizes the rates on Jan. 14.
Market Access for Developers
GEA-5 is also expected to help offshore wind developers secure long-term market access, paving the way for large-scale investments in the sector. The Philippines’ total offshore wind potential is estimated at over 178 GW, according to the DoE, which has already issued 87 offshore wind service contracts with a combined capacity of around 68 GW.
Energy Secretary Raphael P.M. Lotilla and Assistant Secretary Mylene C. Garin have emphasized that the auction supports the administration’s broader energy transition goals.
“Central to our energy transition is our aggressive pursuit of developing and maximizing our renewable energy,” Garin said, noting that the DoE has awarded 1,392 renewable energy projects nationwide, with 7 GW already installed and a potential capacity of 151 GW.
The program’s policy reforms, including the 100% foreign ownership allowance for renewable energy projects, have further drawn international developers to the Philippine market. Winning GEA-5 bidders will receive priority endorsements for key permits and agreements. These include grid connections, facility studies, and renewable energy payment contracts.
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