Philippines Moves Ahead With First Offshore Wind Auction, Sets Benchmark Tariff

The Philippines’ energy regulator has approved a preliminary Green Energy Auction Reserve Price (GEAR) of 10.3859 pesos ($0.18) per kilowatt-hour, roughly equivalent to about 16 Indian rupees per unit, for the fifth round of the country’s renewable energy auctions.

The price, set by the Energy Regulatory Commission (ERC), applies to fixed-bottom offshore wind projects under the Green Energy Auction Program’s fifth round (GEA-5), marking a key step toward the country’s first large-scale offshore wind procurement.

The regulator said the tariff reflects updated assumptions on project costs, including revised capacity factors, port rental charges, fishery compensation and land acquisition or rental costs. Inflation and foreign exchange projections were also updated, while some components such as the cost of equity and decommissioning expenses, were reduced or removed.

Changes In Project Cost

The ERC has also opened consultations on how tariffs may be adjusted to reflect changes in project costs and exchange rates between project award and commercial operation.

The commission proposed a one-time indexation mechanism to account for cost variations over that period. The adjustment would follow a cost-component-based formula, with foreign exchange indexation limited to certain foreign-denominated loans.

The draft GEAR5 price was scheduled for public consultation in December 2025, followed by hearings January before final deliberations by the commission.

Philippines’ first large-scale offshore wind auction

GEA-5 targets 3,300 megawatts of offshore wind capacity for delivery between 2028 and 2030, making it the Philippines’ first large-scale offshore wind auction.

The auction forms part of the Department of Energy’s Green Energy Auction Program, the government’s main mechanism for procuring renewable power capacity.

ERC Chairperson Nino Juan said the auction would support the country’s long-term energy transition.

“This auction for offshore wind is a milestone in achieving the Philippine Energy Plan,” Juan said, adding that the country has offshore wind potential of more than 68 gigawatts.

Further consultations on the indexation framework are scheduled for March 9 and March 10, after which the regulator is expected to finalize the mechanism and issue implementation guidelines.