ERC sets prelim price cap for wind power auction

The Energy Regulatory Commission (ERC) has approved the preliminary price ceiling that will guide the country’s first offshore wind bidding round.

This marks a major step toward expanding large-scale renewable energy capacity under the government’s green procurement program.

In a statement dated Dec. 12, the regulator said it set the preliminary Green Energy Auction Reserve Price (GEAR) for Round 5 at P10.3859 per kilowatt-hour for fixed-bottom offshore wind projects.

The auction forms part of the fifth Green Energy Auction (GEA-5), which the Department of Energy (DOE) earlier cleared for implementation.

“This auction for offshore wind is a milestone in achieving the Philippine Energy Plan set by the DOE,” ERC Chair Francis Saturnino Juan said.

“This technology will be first in the country with a total potential capacity of more than 68 gigawatts,” he added.

The ERC said the draft price will undergo public consultation starting Dec. 12, with the submission of comments open until Dec. 19.

Regional consultations will follow early next year—Luzon on Jan. 5 and Visayas and Mindanao on Jan. 6. These are set ahead of final deliberations at the Commission, slated on Jan. 14, 2026.

Reserve prices

Under DOE rules, the ERC sets reserve prices for every round of the GEA once the DOE issues the terms of reference and notice of auction.

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For GEA-5, the DOE has identified only fixed-bottom offshore wind projects for the 2028-2030 delivery period. The installation target is set at 3,300 megawatts.

The ERC said it also approved the preliminary formula for a one-time indexation mechanism, in accordance with Section 17 of DOE Circular DC2025-06-0009. This proposed formula will likewise be subjected to comments and public consultation alongside the draft GEAR price.

The rollout of GEA-5 is expected to shape early market signals for offshore wind. This is an industry segment that regulators consider essential to diversifying the energy mix and supporting the country’s renewable energy ambitions.

The ERC said the consultations are intended to ensure transparency and gather stakeholder input before finalizing the auction price and indexation framework.