Philippines’ offshore wind energy initiatives gain momentum thanks to President’s ‘whole-of-society, whole-of-government’ approach
This Executive Order describes a comprehensive approach to offshore wind energy development, emphasizing collaboration between government agencies and the region.private sector.
In an important move to accelerate offshore wind (OSW) projects, Philippine President Ferdinand Marcos Jr.issued Executive Order No.21 on April 19, 2023.
From the signing of the EO until today, the EO has made significant progress not only in promoting offshore wind projects but also creating momentum in the wind energy sector with advances significantly by private companies such as BlueFloat Energy, Copenhagen.
Infrastructure Partners (CIP), Corio, Iberdola, GigaWind, SeaWind, Shell and WindKraft are entering the Philippine market in partnership or alone to exploit a portion of the total initial allocation of 22 GW Wind resources can be exploited along the Philippine archipelago.
European developers already have a wealth of experience and technical expertise in offshore wind energy.
Spanish developer BlueFloat tops the rankings with a cluster of four 7.6 GW projects under planning.
The Philippines has about 178 GW of offshore wind resources, according to a World Bank study.
The country is ready to exploit clean energy to meet growing demand, with offshore wind power being a long-term solution as it also offers the potential to produce alternative fuels such as green hydrogen, thereby driving innovation in the country’s energy landscape.
Ordering speeds up allocation
In just five months since EO 21 was published, the number of offshore wind energy service contracts (WESCs) awarded to qualified investors has increased from 38 to 78.
The largest growth in gigawatt and Allocation occurred from August to October, when the number of contracts increased from 63 to 78 contracts for a total capacity of 61.6GW.
The Ministry of Energy reported that in August, some 63 projects were allocated with a total capacity of 50 GW.In September, Assistant Secretary of Energy Mylene C.
Capongcol said during the Smart Energy Forum organized by the European Chamber of Commerce of the Philippines that OSW projects “have reached 77 projects with a potential capacity of 60 gigawatts”. Just last week, this power potential increased to 61.6 GW with 78 turbine projects in the pipeline.
DOE’s recent announcements demonstrate the effectiveness of EO 21 and represent significant progress as the issuance of these service contracts lays the foundation for obtaining the necessary permits and authorizations, within a timely manner.
Total useful life is up to 50 years – first 25 years.an integral part of the contract, with the possibility of extension for an additional 25 years.
Task Distribution
These offshore wind service contracts consist of two main phases: pre-development, which includes feasibility studies and permitting, and project development, which is initiated after the Department of Energy approves the declaration about commercialism.
These agreements grant developers exclusive rights to explore, develop and utilize offshore wind resources in specific areas.
Initial order directs the Department of Energy (DOE) to create a policy and administrative framework within 60 days of enactment.
The framework aims to simplify offshore wind leasing fees and licensing processes, using the Energy Virtual Single Window System (EVOSS) to coordinate with relevant government agencies and offices .
Additionally, the Executive Order requires all permitting agencies to provide DOE with a complete list of required permits, including fees and procedures, within 60 days.
This proactive approach seeks to identify and resolve potential bottlenecks in the permitting process.
Additionally, the order directs the DOE to coordinate with the National Grid Corporation of the Philippines (NGCP) and the National Transmission Corporation (TRANSCO) to ensure timely grid interconnection for OSW projects.
This collaborative effort includes support from national government agencies, government-owned or -controlled corporations (GOCCs), and local government units (LGUs).
Parallel Work
Meanwhile, the Philippine Department of Environment and Natural Resources (DENR) is working with DOE to integrate offshore wind and floating solar guidelines into the National Expenditure Program (NEP) next year.
The move is in line with the country’s commitment to transition to renewable energy sources.
DENR converged budgeting, supported by climate labeling, facilitates collaboration among government agencies and departments to conduct climate change mitigation and adaptation projects .
As the DENR plays a larger role in the Committee on Climate Change (CCC), it will present the National Adaptation Plan during the 2024 budget deliberations.
The “whole-of-government” approach is vital for the successful development of OSW projects in the Philippines, considering the complexities involved.
These projects have the potential to address the country’s growing energy needs and reduce reliance on fossil fuels, with an estimated offshore wind total potential of 178 gigawatts (GW).
Developing just 10 GW could result in substantial job creation and over $1 billion in annual investments, as per the World Bank.
Proactive Measures
With these proactive measures and the increased interest from investors in renewable energy projects, the Philippines is positioning itself to unlock its offshore wind potential and make substantial strides towards a greener energy future.
The Executive Order and related initiatives are integral to achieving the country’s renewable energy goals, which include a target of 35% renewable energy in the energy generation mix by 2030 and 50% by 2040. Currently, renewables account for 22% of the Philippines’ electricity supply.
