The Department of Energy (DOE) on Tuesday announced a shift in its Green Energy Auction Program (GEA5), introducing a more holistic and commercially grounded approach for offshore wind project evaluation. This marks a significant move to improve coordination, attract viable investments, and enhance infrastructure delivery in the country’s renewable energy push.
Following a stakeholder dialogue, the DOE said the GEA5 will go beyond pricing by factoring in technical readiness, permitting progress, grid connectivity, risk management, and delivery timelines in its bid assessments. This shift aims to better align the auction process with real-world project dynamics.
With up to 3,300 MW in capacity eyed for inclusion in GEA5, targeted for completion between 2028 and 2030, the DOE is requiring developers to submit infrastructure plans early to facilitate inter-agency collaboration and reduce implementation delays.
In a bid to tighten performance guarantees, only bank guarantees, irrevocable standby letters of credit, or cash will be accepted—excluding surety bonds. Additionally, project awards will be revoked if delays exceed three years due to developer default, though lenders will retain step-in rights to preserve project continuity.
“The energy transition requires more than just policy—it demands implementable rules, open dialogue, and strong partnerships,” said DOE undersecretary Rowena Cristina Guevara, emphasizing the department’s push for consistency and bankability in project execution.
