The Department of Energy (DOE) announced revised guidelines for its first-ever offshore wind energy auction, aiming for a more transparent and practical process. The DOE held a virtual meeting with industry stakeholders on June 30th to finalize the Terms of Reference (TOR) for Green Energy Auction 5 (GEA-5).
The auction, targeting 3,300 megawatts of offshore wind capacity between 2028 and 2030, will now consider factors beyond price. Technical readiness, permitting progress, grid connection plans, project timelines, and risk management will all play a role in evaluating bids.
The DOE stressed the importance of early coordination among developers, transmission providers, and port authorities to streamline the process and prevent delays. Only bank guarantees, letters of credit, or cash will be accepted as performance securities, a change designed to strengthen accountability.
Delays exceeding three years due to developer defaults will lead to project revocation, although lenders will retain the right to take over projects before such action. Undersecretary Rowena Cristina Guevara emphasized the importance of collaboration, stating, “The energy transition requires… open dialogue, and strong partnerships.”
The DOE plans to release a long-term auction roadmap outlining future targets. Stakeholders have expressed positive feedback on the revised approach, viewing GEA-5 as crucial for attracting investment and bolstering the country’s renewable energy sector.
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