DoE suspends offshore wind auction

THE Department of Energy (DoE) has suspended the country’s first offshore wind auction until further notice, citing logistical constraints, infrastructure readiness, and global supply chain risks, including those arising from the conflict in the Middle East.

In a notice, Energy Undersecretary Felix William B. Fuentebella informed qualified suppliers and renewable energy stakeholders that activities and proceedings under the fifth Green Energy Auction (GEA-5) are on hold until further notice.

Mr. Fuentebella, who chairs the GEA Bids Evaluation and Awards Committee, said the suspension is intended to recalibrate the auction’s implementation to address several considerations.

These include port readiness, permitting requirements, environmental and port-related cost implications, and the potential impact of global supply chain disruptions, including those arising from the conflict in the Middle East.

“This measure is intended to ensure a more transparent, orderly, and implementation-ready auction process,” Mr. Fuentebella said.

He said the recalibration would allow the DoE to further align the auction’s requirements, timelines, and implementation parameters with the current state of infrastructure readiness, regulatory requirements, and project status.

GEA-5 is the country’s first auction dedicated exclusively to offshore wind projects, offering 3,300 megawatts of capacity for delivery between 2028 and 2030.

The auction proper had been scheduled for Aug. 27, while notices of award were expected to be issued by Sept. 23.

The Energy Regulatory Commission has set the Green Energy Auction Reserve Price for offshore wind projects at P11 per kilowatt-hour.

The DoE earlier said nine bidders advanced to the auction’s evaluation stage out of 20 prospective offers.

The government is banking on offshore wind to help diversify the country’s energy sources and reduce dependence on fossil fuels, with the first offshore wind projects expected to begin delivering electricity by 2028.

The DoE expects offshore wind to help raise the share of renewable energy in the country’s power generation mix to 35% by 2030 and 50% by 2040. — Sheldeen Joy Talavera