The Department of Energy (DOE) warned on Tuesday that it will revoke certificates of award and endorsement for green energy tariffs for developers under its Green Energy Auction 5 (GEA-5) if projects face delays exceeding three years due to developer default.
The move aims to “safeguard the integrity” of the GEA-5 auction process, the first in the Philippines dedicated exclusively to offshore wind projects, the DOE said in a statement.
The department said lenders’ “step-in rights” will be recognized, allowing them to assume control of a project before any revocation.
The DOE’s announcement followed a virtual dialogue on June 30, 2025, with key industry stakeholders to refine the draft terms of reference (TOR) for GEA-5. The engagement sought to improve implementation and provide clarity.
The department also plans to publish a long-term GEA roadmap, outlining indicative timelines and capacity targets for future auction rounds.
“The energy transition requires more than just policy, it demands implementable rules, open dialogue, and strong partnerships,” DOE Undersecretary Rowena Cristina Guevara said.
“We are working to make the process more responsive to real project conditions and more consistent across the board,” she said.
Representatives from the DOE and other government agencies, including the Department of Environment and Natural Resources – Forest Management Bureau, Department of Health – Bureau of Quarantine, Department of Labor and Employment Energy Regulatory Commission, Maritime Industry Authority, National Power Corporation, National Resource Water Board, National Transmission Corporation, Philippine Coast Guard, and Philippine Ports Authority, along with the private sector, exchanged views during the two-hour discussions.
The goal was to ensure the auction framework is practical, transparent and aligned with the unique requirements of offshore wind development.
The DOE said GEA-5 would adopt a more holistic and balanced approach to bid evaluation, expanding beyond price criteria to include technical readiness, permitting progress, grid connection status, delivery timeline and risk management.
Responding to concerns from developers, the DOE also stressed the importance of early coordination with the transmission network service provider and port authority. It encouraged developers to submit infrastructure plans at the earliest stages to support inter-agency coordination, reduce bottlenecks and enhance accountability.
The DOE said only bank guarantees, irrevocable standby letters of credit or cash would be accepted as performance securities under GEA-5; surety bonds would no longer be permitted.
Participants welcomed the constructive and solution-oriented tone of the discussion, the agency said. With 3,300 megawatts of offshore wind capacity targeted between 2028 and 2030, GEA-5 is seen as a critical step in building renewable energy capacity, attracting investment, and enhancing long-term energy security.
