ERC sets P11/kWh cap for offshore wind auction
The Energy Regulatory Commission (ERC) has set the country’s first offshore wind power price cap at P11 per kilowatt hour (kWh). This is under the fifth round of the green energy auction program.
The amount is slightly higher than the initial rate of P10.3859 kWh.
The ERC commission took into account more capacity factors. These include port rental, fishery compensation and land acquisition or rental costs.
Inflation and foreign exchange assumptions were also factored in.
Meanwhile, regulators are still set to hold consultations to determine how electricity prices covering this energy technology can be adjusted if project costs and foreign exchange rates change between the time it is awarded and when it starts commercial operations.
The adjustment, called indexation, is a one-time tariff adjustment mechanism that accounts for cost changes between project award and commercial operation. This is pursuant to the Department of Energy (DOE) Circular DC2025-06-0009.
“Stakeholder feedback will help ensure that the indexation framework reflects project cost realities while maintaining consumer protection,” ERC said in a statement.
Another public consultation is scheduled in March.
“The ERC reaffirmed that the review aims to ensure offshore wind projects remain bankable while protecting consumers from excessive power costs as the Philippines advances its offshore wind development targets,” it added.
The GEA-5, the first bidding focused on offshore wind projects, has an installation target of 3,300 megawatts (MW). It is targeted to start by the third quarter of 2026.
The DOE is expected to launch more rounds of auctions for offshore wind developments as the country hopes to unlock nearly 70,000 MW of wind capacity.
These auctions are meant to complement the government’s efforts to entice investors to expand to renewables, as it aims to grow clean energy’s share in the power generation mix to 35 percent by 2030 from the current 22 percent.
