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The government’s energy transition narrative prominently features renewables, including offshore wind (OSW). The Department of Energy (DOE)’s Green Energy Auction Program (GEAP) aims to procure renewable capacity, targeting 3,300 MW of fixed-bottom OSW for 2028–2030 deliveries in the fifth auction round (GEA-5). If realized, this would represent the nation’s first large-scale OSW procurement.
Perhaps the most controversial aspect of the Philippines’ OSW plans is cost. In late February 2026, the Energy Regulatory Commission (ERC) increased the ceiling price of ₱11 per kilowatt-hour (kWh) for OSW in GEA-5. The rate reflects not just turbine costs but port rentals, fishery compensation, land acquisition or rentals, inflation, and foreign exchange considerations that had to be factored into the government’s pricing model.
According to Manila Bulletin columnist Myrna Velasco, the Philippines’ proposed OSW ceiling is far higher than rates in neighboring markets. By comparison, Vietnam charges between ₱6.96 and ₱8.70 per kWh depending on the region, while Taiwan offers a 20-year feed-in tariff of ₱8.33 per kWh.
“Regarding the technology: the ERC claims it adjusted the initial estimate by banking on the use of Chinese technology,” wrote Velasco. “One can’t help but wonder what unknown cost components are being masked for the final tariff to climb so high.”
Meanwhile, the UK averaged ₱7.00, France between ₱4.49 and ₱10.21, the Netherlands ₱3.67–₱4.90, and Denmark ₱5.78–₱9.60 per kWh, showing that the Philippines’ proposed rate remains higher than regional and developed-country benchmarks.
PhilStar columnist Bienvenido Oplas warned that OSW could significantly increase electricity costs for ordinary Filipinos. Winning projects will supply power for 20 years at a guaranteed energy tariff (GET) of ₱11 per kWh once commissioned and registered with the electricity spot market. Consumers will also face additional charges through the GEA-Allowance (GEA-All) on top of the existing feed-in tariff allowance (FIT-All).
Additionally, OSW’s remote locations will require higher capital expenditure from the National Grid Corporation of the Philippines (NGCP), leading to increased transmission wheeling charges and ancillary service costs reflected in monthly electricity bills.
“The Philippines has entered a new era of provoking more inflation with additional expensive energy sources like OSW,” declared Oplas. “The economic team should flag this creeping danger to our macroeconomic stability.”
(Also read: Power at a Price: The Truth Behind the Philippines’ Soaring Electricity Rates)
Environmental Pushback
OSW is often promoted as a climate-friendly solution, but for many coastal communities and environmental advocates, the technology presents a host of local ecological and socio-economic concerns that go beyond carbon emissions.
In Ilocos Norte, fisherfolk and groups such as Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (PAMALAKAYA) staged protests against a planned 2,000-MW BuhaWind OSW Farm. Opponents warned that the proposed wind farm could affect at least 6,000 fisherfolk in Ilocos Norte. The ₱360‑billion project, a joint venture between Denmark’s Copenhagen Energy and PetroGreen Energy Corp., is planned 1 to 18 kilometers offshore, in waters reaching depths of up to 800 meters.
Residents and small-scale fisherfolk of San Miguel Bay in Camarines Sur also voiced strong concerns over a proposed 1,000‑MW OSW farm, part of Copenhagen Infrastructure New Market Fund Corp. ‘s (CINMF) ₱175‑billion OSW portfolio. Covering 23,307 hectares, much of the area falls within municipal waters reserved for small-scale fishers.
The San Miguel Bay project, alongside CINMF’s 650-MW OSW in Samar and 350-MW OSW in Dagupan, involves 25‑year service contracts and is expected to directly affect 5,000 to 6,000 local fisherfolk.
Currently, the Philippines lacks marine spatial planning (MSP) for OSW, a tool that allocates ocean space among competing uses such as fishing, shipping, conservation, and coastal communities. MSP provides clear zones for wind farms, helping reduce conflicts and making project siting more predictable.
(Also read: Pangasinan, Zambales Tapped for Promising Native Hydrogen Projects)
Global Stage: Stranded Power and Digital Vulnerabilities
In the global push toward renewable energy (RE), OSW is often presented as a cornerstone technology, a vast and largely untapped carbon-free resource that could help decarbonize electricity systems. However, recent developments around the world suggest a more complex and evolving picture.
Across many countries that have embraced wind energy, the operational challenge is curtailment: limiting or shutting down wind output because the grid cannot absorb it in real time. Wind energy curtailment happens when turbines could produce electricity, but grid operators instruct them to curtail generation to maintain system stability, prevent overloads, or cope with transmission bottlenecks.
In the US, wind and solar curtailment surged in 2024, collectively losing about 20 million megawatt-hours (MWh) of potential output. The figure continued to rise in 2025, with multiple Independent System Operators (ISOs) reporting sharp increases in RE left unused because transmission infrastructure could not deliver it where needed and demand was insufficient.
Figures from the UK’s National Energy System Operator show that about 8.3 terawatt-hours (TWh) of wind generation were curtailed in 2025, with roughly 98% coming from OSW projects, many located in Scotland. The 1,075-MW Seagreen OSW was among the hardest hit, with curtailment levels reaching around 70% at times. As a result, compensation and constraint payments climbed beyond £1 billion last year, costs that are ultimately passed on to consumers and estimated to add £15 to £50 annually to the average household electricity bill.
Beyond curtailment, OSW is increasingly recognized as a complex, digitally interconnected industrial system with significant cybersecurity vulnerabilities. Unlike traditional power plants, wind farms rely on networked control systems, remote communications, and digital infrastructure to operate turbines and transmit data, making them attractive targets for cyber attackers and potential gateways into broader energy networks.
Experts note that existing grid and wind control systems often lack offshore-specific cybersecurity measures. Research also shows that cyber-physical attacks, such as data integrity breaches on offshore grid links, could propagate disturbances into the main grid. These risks highlight that OSW requires robust digital defense against evolving cyber threats.
Other Challenges for OSW in the PH
Beyond pricing and environmental concerns, OSW development in the Philippines faces a series of structural and technical hurdles that could slow deployment and raise costs. Ports and logistics infrastructure are not yet ready for the size and complexity of wind turbines, foundations, and subsea cables, which require specialized heavy‑lift vessels, deep‑water staging hubs, and skilled crews. The absence of such facilities contributes to higher transport and construction costs and longer timelines for project delivery.
The country’s transmission grid also needs substantial upgrades to become “offshore‑ready.” Without new high‑capacity links from distant waters to population centers, completed wind farms risk becoming stranded assets, unable to deliver their output to the grid.
Permitting processes add further delays, as OSW projects must secure multiple overlapping approvals from national and local agencies, covering environmental studies, marine space use, and coastal regulations.
Financing is another major constraint. Globally, rising interest rates, inflation, and continued supply chain pressures have driven up capital costs, directly increasing the levelized cost of electricity (LCOE) for OSW relative to conventional sources. Current estimates put its levelized cost of energy between $72 and $140 per MWh, significantly higher than the $24 to $75 per MWh typical for onshore wind.
Engineering to withstand extreme weather is especially challenging in the typhoon‑prone Philippines, where turbines must endure high winds, rough seas, and seismic stress, adding to design complexity and risk premiums.
On top of physical challenges, cybersecurity concerns are emerging. Modern turbines are highly networked, and with Chinese technology widely used due to lower upfront costs, critics argue that remote access and digital vulnerabilities could pose operational and data security risks if not properly managed.
A Future in Flux
OSW sits at a crossroads: ambitious government targets, immense natural potential, and strong climate narratives contrast with emerging operational, economic, and environmental realities that cannot be ignored.
Yes, OSW can generate large amounts of low-carbon electricity. But its deployment is accompanied by real curtailment issues, cybersecurity vulnerabilities, high costs, environmental trade-offs, and infrastructure challenges. For places like the Philippines, which are still building their energy systems and where affordability and reliability are central priorities, a cautious and transparent assessment of OSW’s true costs and benefits is essential.
The technology has transformative potential, but it’s far from a plug-and-play solution. Wind enthusiasts and critics alike will need to grapple with these practical constraints if long-term energy planning is to succeed, not just in targets, but in delivering reliable, affordable, and secure power for the people.
Sources:
https://www.enlitia.com/resources-blog-post/what-is-wind-curtailment
https://www.amperon.co/blog/us-solar-and-wind-curtailment-is-exploding
https://mb.com.ph/2026/02/16/offshore-winds-curtailments-and-cybersecurity-risks
https://www.dnv.com/group/joint-industry-projects/ot-cyber-security-for-offshore-wind
https://www.philstar.com/business/2026/02/23/2509707/erc-raises-ceiling-price-offshore-wind-auction
https://mb.com.ph/2026/03/02/why-must-filipinos-pay-for-costliest-offshore-wind-in-the-world
https://finex.org.ph/2026/02/27/offshore-wind-auction-a-crucial-test-for-ph
https://www.philstar.com/business/2026/02/23/2509707/erc-raises-ceiling-price-offshore-wind-auction
https://mb.com.ph/2026/03/02/why-must-filipinos-pay-for-costliest-offshore-wind-in-the-world
https://www.philstar.com/business/2026/02/26/2510426/stable-nuclear-power-expensive-offshore-wind
https://mb.com.ph/2025/12/08/who-wants-to-pay-14kwh-for-offshore-wind