The Government of the Philippines’s Department of Energy – DOE has gone ahead and issued the Notice of Auction and the Terms of Reference – ToR for the fifth round when it comes to the Green Energy Auction – GEA-5. The offshore wind auction happens to mark the first competitive process of the country that’s dedicated exclusively to fixed-bottom offshore wind projects. This round of the offshore wind auction goes on to offer 3,300 MW to be delivered between 2028 and 2030. The ToR details the needs and assessment procedures along with submission timelines for the developers.
Apparently, the ToR includes numerous refinements. Only fixed-bottom offshore wind projects are going to be eligible, based on the port as well as grid readiness. In addition to this, the supply delivery period is set at 20 years, with green energy tariff – GET payments mandatory starting at commissioning as well as wholesale electricity spot market registration. It also introduces an expanded offshore wind infrastructure plan that addresses the grid connection, logistics, and port usage, as well as major development milestones. It also specifies the port access rules and queuing orders along with associated penalties in case there are any delays. Apart from this, the ToR also outlines updates to the bid bonds, GET entitlement rules, and performance guarantees. Also, lender step-in rights for project financing along with continuity have been incorporated.
It is worth noting that the GEA-5 embraces a milestone-based process that goes on to link project development along with government actions that are related to port preparation, grid studies, and permitting, as well as construction. Coordination with the National Grid Corporation of the Philippines – NGCP, National Transmission Corporation (TransCo), and port authorities is anticipated, with successful bidders getting priority when it comes to facility studies, grid-connection arrangements, renewable energy purchase agreements, and also port scheduling. Interestingly, the Pambujan port based in Camarines Norte and the Sta. Clara port at Batangas are identified as the installation ports, with guidance to be offered for developers who are looking out for private port usage. The developers are now looking to prepare registration documents, which include the likes of wind resource evaluation as well as infrastructure plans, with the DOE all set to announce the pre-bid conference along with the registration schedule on its website.