The Department of Energy (DOE) has warned that the fifth round of the Green Energy Auction (GEA5), which will include the country’s first offshore wind (OSW) projects, may be delayed due to the ongoing leadership vacuum at the Energy Regulatory Commission (ERC).
DOE assistant secretary Mylene Capongcol emphasized that a full roster of ERC commissioners is essential to finalize the auction reserve price. Without this, developers cannot bid on fixed-rate renewable energy contracts. The delay puts at risk up to 3,300 MW of potential OSW capacity targeted for completion between 2028 and 2030.
While Capongcol remains hopeful that GEA5 can still proceed by Q3 2025, she acknowledged that ERC appointments must be made “soonest” to avoid further bottlenecks.
The DOE is actively preparing port upgrades and transmission infrastructure with the Philippine Ports Authority to accommodate OSW components. Developers will be shielded by force majeure provisions if these facilities are not ready, as part of DOE’s risk-mitigation strategy.
The leadership impasse could also undermine long-term energy affordability goals. DOE projections show that successful execution of the first five GEA rounds could cut power rates to below ₱1 per kilowatt-hour by 2050, with simulations suggesting potential rates as low as ₱0.28/kWh in Luzon.
Despite over 65,000 MW in OSW capacity already under contract, the Philippines has zero operational offshore wind projects at present, and only 427 MW of installed on-grid wind—all from onshore sources.
The absence of ERC leadership not only delays GEA5 but also clouds regulatory certainty, deterring investor confidence at a critical juncture in the Philippines’ clean energy transition.
