The Energy Regulatory Commission (ERC) has approved a Green Energy Auction Reserve (GEAR) price of PHPP11.00 per kWh for offshore wind projects under the fifth round of the Green Energy Auction Program (GEAP). The reserve price applies to 3,300 MW of fixed-bottom offshore wind capacity to be procured under GEA-5, with delivery scheduled between 2028 and 2030. The approved rate reflects an upward revision from the preliminary PHP10.3859/kWh following updates to cost assumptions, including capacity factor estimates, port rental fees, fishery compensation, land acquisition or rental costs, and revised inflation and foreign exchange projections.
The ERC has initiated public consultations under ERC Case No. 2025-023 RM to determine the tariff indexation mechanism applicable between project award and commercial operation. The proposed one-time indexation framework, aligned with Department of Energy Circular DC2025-06-0009, adopts a cost-component-based formula, with foreign exchange indexation limited to specific foreign-denominated loans. A third round of consultations is scheduled for March 9, 2026, at the ERC Multi-Purpose Hall, followed by a virtual session on March 10, 2026, for stakeholders in the Visayas and Mindanao regions.
GEA-5 forms part of the Department of Energy’s renewable energy procurement strategy to meet national clean energy targets and advance offshore wind deployment. Following the consultation process, the ERC is expected to finalise and issue implementing guidelines for GEAP Round 5, with the indexation framework intended to balance project bankability and consumer protection.