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The Philippines is targeting a renewable energy share of 50% in its power generation mix. Offshore wind is projected to contribute 21% to the total.
Offshore wind has been a hot topic in the Philippine energy sector for less than two years, but developments have been rapid and significant as the Philippine Government accelerates its pivot to renewable energy sources and key industry players rally for further progress.
The World Bank Group released a roadmap in 2022 showing that the Philippines has the potential to generate up to 21 gigawatts of offshore wind by 2040. The country is targeting a renewable energy share of 50% in its power generation mix by that same year, currently posting a 22.1% current share from geothermal, hydroelectric and other renewable sources. Offshore wind is projected to match those sources, contributing another 21% to the total.
In October last year, NIRAS organised the Philippines’ first Wind Energy Forum, bringing stakeholders from the government and the private sector into dialogue regarding the necessary first steps for the development of the offshore wind industry in the country. One recurrent theme was the necessity of collaboration to get the industry off the ground. This year’s event focussed on the country’s readiness for offshore wind on a variety of fronts.
Having returned from a recent study trip to Denmark and Norway, Energy Undersecretary Giovanni Carlo Bacordo stressed the importance of developing the country’s ports to support offshore wind.
The offshore wind sector requires specialised infrastructure to support its needs in the form of at least three different kinds of ports:
Of these, Giovanni identifies the marshalling port as the most critical priority due to its exacting requirements in terms of key length and load bearing capacity. At present, none of the ports within the country meet the requirements to serve as marshalling ports.
In response to this, the Philippine Government has requested technical assistance from the Asian Development Bank to upgrade ten existing ports for the purpose. The Department of Energy has further submitted a recommendation for the upgrading of another seven ports as well as the development of a 46-hectare area adjacent to the port of Batangas solely designated for offshore wind and other energy-related activities.
By 2040, the Philippines’ energy demand is projected to double, hence the need for increased capacity for power generation and transmission. In response to this, the National Grid Corporation of the Philippines, which manages and develops the country’s entire power grid, has initiated major projects to upgrade and expand its transmission lines. A number of these projects, in addition to increasing capacity, will also develop the necessary infrastructure to support connections with offshore wind plants.
According to NGCP representative Eufemio Buluran, several of these projects have already been completed, with significant regions of the grid fully capable of handling the increased power generation from offshore wind and other energy sources in the future. However, regulatory approval and conflicting land use programmes may pose a challenge for the development of more transmission lines.
In addition to the infrastructural needs of the offshore wind industry, a clear regulatory framework also needs to be in place to provide guidelines and mitigate risk for developers. NIRAS has taken the lead in this regard by facilitating the development of a comprehensive permitting and consenting process.
NIRAS has previously organised a series of workshops that brought together various government agencies with a potential stake in the regulation of offshore wind in the country. The goal of these workshops was to clarify existing procedures for permitting offshore wind development as well as to look for ways to further streamline and rationalise the process.
Initially, a total of 84 different permits across 21 permitting agencies were identified. Through the workshops, 33 were named core permits and categorised according to their place in the offshore wind development cycle.
Developers have applauded the work that has gone into creating a clear permitting and consenting framework, but they also stress that continuing stability and consistency are critical for them to be able to deliver results according to the Philippine Government’s own projected timeline.
According to the Global Wind Workforce Outlook 2023–2027, a total of 574,000 technicians will be needed to construct, install, operate and maintain the world’s rapidly growing wind fleet by 2027. These technicians will need specialised wind industry training and relevant certification.
In line with this, the Danish and Philippine governments have started the Jobs4RE initiative to accelerate the training and upskilling of workers for the renewable energy industry in the Philippines. This initiative will not only provide the country with the pool of skilled labour needed to meet its renewable energy targets but also enable Filipino workers to meet the standard requirements for employment in the offshore wind industry in the rest of the world.
With so much currently underway to prepare the way for offshore wind to take off into the Philippines, it is no surprise that optimism is high among stakeholders, not least among them being the first generation of developers in the industry.
“I remember two years ago there was nothing on wind at all, not even onshore, and now you cannot you know you cannot spend a month without talking about it,” says Björn Rosenberger, Head of Offshore Wind at Triconti ECC Renewables Corporation, one of these first-generation developers.
“But I'm still not getting tired of it because it's very, very important to see the dynamics, to get the different players in the room,” Björn continues. “Only that way can we have the visibility to really move the industry forward.”
