ERC proposes over P10/kWh cap for offshore wind auction
THE ENERGY REGULATORY Commission (ERC) has proposed P10.3859 per kilowatt-hour (kWh) as the ceiling price to guide participants in the fifth green energy auction round (GEA-5) for offshore wind next year.
The green energy auction reserve (GEAR) price will be used in the auction for fixed-bottom offshore wind projects, which will have an installation target of 3,300 megawatts (MW).
At a briefing last week, ERC Director for Market Operations Service Sharon Ocampo-Montañer said the commission took into consideration some proposed offshore wind projects in Manila Bay, San Miguel Bay, Guimaras Strait, and southern Mindoro in setting the price.
“We have also considered the costs of various wind turbine suppliers,” she said.
The GEAR price serves as the maximum price in pesos per kWh, which will guide bidders during the auction.
The public can comment on the proposed GEAR price for offshore wind energy by Dec. 19. The ERC will conduct public consultations on Jan. 5 and 6.
“This auction for offshore wind is a milestone in achieving the Philippine Energy Plan set by the DoE,” ERC Chairmann Francis Saturnino C. Juan said.“This technology will be first in the country with total potential capacity of more than 68 gigawatts.”
GEA-5, the first auction dedicated solely to offshore wind projects, is expected to take place within the first half of 2026.
The Philippines is hoping to start generating offshore wind power by 2028 in the course of diversifying its energy sources and reducing dependence on fossil fuels.
It expects offshore wind to play a key role in achieving the target of increasing renewable energy’s share in the power mix to 35% by 2030 and 50% by 2040. — Sheldon Joy Talavera
You May Also Like
Wormhole launches reserve tying protocol revenue to token
Wholecoiner Inflows to Binance Hit Cycle Lows, Signaling Reduced Sell Pressure
