The Department of Energy (DOE) said the fifth round of the Green Energy Auction (GEA5) will adopt a more holistic and balanced approach after the conduct of a dialogue with industry stakeholders to refine its draft terms of reference.
The bid evaluation for GEA5, which will involve offshore wind projects, will also include technical readiness, permitting progress, grid connection status, delivery timeline and risk management, the DOE said in a statement on Tuesday.The DOE announced its plan to further improve the GEA rules, guidelines, terms and parameters after holding a dialogue with renewable energy stakeholders on June 30.
Under the current GEA setup, interested renewable energy developers compete for incentivized fixed power rates by offering prices that are lower than, or equal to, reserve prices set by the Energy Regulatory Commission.
Although not yet final and awarded to specific developers, DOE is expecting up to 3,300 MW to be enrolled for GEA5, and targeted for completion between 2028 and 2030.
The agency added that for GEA5, developers will be encouraged to submit infrastructure plans at the earliest stages to support inter-agency coordination, reduce bottlenecks and enhance accountability.
The DOE also clarified that only bank guarantees, irrevocable standby letters of credit, or cash will be accepted as performance securities under the GEA5, as surety bonds will no longer be permitted.
To safeguard the integrity of the auction process, delays exceeding three years due to developer default, will result in the revocation of the Certificate of Award and the Certificate of Endorsement for the Green Energy Tariff, the DOE said.
However, lenders’ “step-in rights” will be recognized, allowing them to assume project control before any revocation, the DOE said.
“The energy transition requires more than just policy, it demands implementable rules, open dialogue, and strong partnerships… We are working to make the process more responsive to real project conditions and more consistent across the board,” Energy Undersecretary Rowena Cristina Guevara said.
