The Department of Energy (“DOE”) has issued Department Circular No. DC2026-09-0020, "Providing the Implementation Readiness Framework for the Recalibration of the Fifth Round of the Green Energy Auction (GEA-5) for Offshore Wind, and Authorizing the Amendment of the GEA-5 Terms of Reference." Signed by the Energy Secretary on 25 September 2026, the Circular recalibrates the Fifth Round of the Green Energy Auction (“GEA-5”), the first auction round focused on offshore wind (“OSW”), and authorizes the amendment and supplementation of the GEA-5 Terms of Reference (“TOR”). GEA-5 activities had been placed on hold under GEA-5 Advisory No. 2 to address port readiness, permitting, environmental and port-related costs and supply-chain risks.

Key provisions

  • Port-linked sequencing. Except as otherwise provided, only ports administered by the Philippine Ports Authority (“PPA”) may be used for assembly and installation. Only one Winning Bidder may use a given PPA port at any time, and in consideration of the GEA-5 Delivery Commencement Period, at most two may use the same port consecutively. Each Winning Bidder may occupy its designated port for no more than 27 consecutive months, and bidders with the earliest Delivery Commencement Date (“DCD”) have priority.
  • Private ports at the developer's risk. Private ports and alternative logistics (including foreign pre-assembly with direct load-out) may only complement PPA ports. Any resulting delays are for the developer's sole account, do not justify a DCD extension, and do not prevent the immediate calling and forfeiture of performance guarantees.
  • Stricter award condition. Certificates of Award (“COAs”) will be conditioned on verified commencement of physical assembly and installation at the designated port within the OSW Infrastructure Plan timelines, subject to any grace period in the Supplemental TOR. Failing that, the COA is cancelled and the port is reassigned to the next-ranked bidders.
  • Developers bear port costs. Winning Bidders bear all costs of occupying PPA ports through standardized fees and escalating surcharges so that these costs are not passed on to consumers. Progressively escalating surcharges and penalties will apply to unauthorized occupancy or overstay, and cannot be offset against other obligations.
  • Extensions for government-side delays. DCD and related timelines may be extended where delays stem from documented bottlenecks in PPA ports or grid connections, or from absent, late or modified rules under Sections 7 to 12.
  • Inter-agency alignment. The Circular calls for arrangements with the PPA, Department of Environment and Natural Resources (“DENR”), Department of Public Works and Highways (“DPWH”), Energy Regulatory Commission (“ERC”), National Transmission Corporation (“TransCo”), transmission and market entities, and the Philippine National Oil Company (“PNOC”) on possessory rights over landfalls, cable landing points, substations and staging areas, with use rights starting in sync with assembly and installation.

Resumption

GEA-5 resumes only after a DOE technical review and an Advisory, from the Evaluation of the Rectified OSW Infrastructure Plans (Activity 12). Qualified Bidders must update their plans on ports, time-of-use, readiness baselines and DCD only; wind resource assessments, financial models and core footprints may not change, and registration will not be reopened.

Who is affected and effectivity

GEA-5 participants and bidders, port operators, and the agencies and entities involved. The Circular takes effect fifteen (15) days after publication in two newspapers of general circulation and filing with the UP Law Center's Office of the National Administrative Register.

Practical takeaways

  • Revisit OSW Infrastructure Plans, port strategy and DCD assumptions against the 27-month window and the queue.
  • Price port fees, surcharges and the risk of COA cancellation into bid and financing models.
  • Watch the DOE website for the Supplemental TOR, fee schedules and readiness baselines, which must be posted before the auction resumes.

Source: Department of Energy, Department Circular No. DC2026-09-0020.

This alert was prepared by OS Law for general information only and is not legal advice. Please consult counsel on how these rules apply to your specific circumstances.