The Department of Energy (DOE) has suspended all activities under the fifth round of the Green Energy Auction (GEA-5), delaying the country’s first offshore wind auction as the agency recalibrates the program to address infrastructure, permitting, and market readiness concerns.

In Advisory No. 2 dated July 4, the DOE said all activities and proceedings under GEA-5 are “hereby placed on hold until further notice.”

The agency said the suspension is intended to allow the DOE, together with concerned government agencies and other stakeholders, to reassess the auction’s implementation in light of several key considerations.

These include port readiness, permitting requirements, environmental and port-related cost implications, as well as potential disruptions to global supply chains, including those stemming from the ongoing conflict in the Middle East.

The DOE said the review aims to better align the auction’s requirements, timelines, and implementation parameters with actual project development conditions.

“This is being undertaken to allow the DOE, together with concerned government agencies and relevant entities, to recalibrate the implementation of GEA-5 in view of key implementation considerations, including port readiness, permitting requirements, environmental and port-related cost implications, and the possible impact of global supply chain disruptions, including those arising from the conflict in the Middle East, among others,” the advisory said.

The agency stressed that the move is intended to improve the overall execution of the auction rather than cancel it.

“The DOE emphasizes that this measure is intended to ensure a more transparent, orderly, and implementation-ready auction process,” the agency stated.

The DOE said it will issue revised guidelines, supplemental issuances, and updated timelines once the review has been completed.

Will the suspension of GEA-5 lead to a stronger, more bankable offshore wind auction, or could further delays slow the Philippines’ renewable energy transition? Share your thoughts in the comments.

Follow Power Philippines on Facebook and LinkedIn or join our Viber community for more news and updates  on the Philippine energy sector.