By Sheldeen Joy Talavera, Reporter
GETTING production out of the first offshore wind farms by 2028 is considered “doable” with close coordination between regulators and project proponents, according to Danish technical consultancy firm K2 Management (K2M).
“The 2028 completion of the first offshore wind sounds aggressive but it is also doable, but that does require all the stakeholders to closely collaborate (to achieve) the 2028 targets,” Scott Hsu, K2M director for Taiwan and the Philippines, told BusinessWorld.
The Philippines is hoping to generate its first output from offshore wind by 2028 as it bids to diversify its energy mix and reduce dependence on fossil fuels.
“If all the resources (from the) government and private sector are in place, I think the Philippines, with all that sea area, has a lot of potential to play a major role in the future electricity production,” he said. “But that (depends on the speed of) the auctions… (and whether) the authorities and the private sector come together.”
The Department of Energy (DoE) is planning to hold its fifth green energy auction (GEA-5) focused on offshore wind by the third quarter of 2025.
The auction is expected to ensure market access for offshore wind developers, to establish to their funders that they can tap long-term demand.
As of October 2024, the government has awarded 92 offshore wind contracts with 68 gigawatts (GW) of potential capacity. Of the total, 21 contracts representing 19.2 GW were awarded to foreign-owned companies.
The DoE said it is assisting 16 offshore wind frontrunners who have committed to deliver a total of more than 16 GW of new capacity.
“The offshore wind success requires all stakeholders’ efforts. And then transparent and supportive policy is very important from the government side,” Mr. Hsu said.
The banking industry also plays a crucial role in offshore wind development, he said.
“It is very important for (the banks) to be actively participating in the financing… That will be the only way to turn this financial investment into a successful project,” he said.
He said ports are also needed to serve as logistics hubs throughout the life cycle of the projects.
The DoE has said that the Philippine Ports Authority has committed and allocated funds for repurposing and expanding Currimao port in Ilocos Norte, the Port of Batangas, and the Jose Panganiban port in Camarines Norte.
These ports were identified as critical to offshore wind development due to their proximity to high-potential wind energy sites.
According to the World Bank’s 2022 Offshore Wind Roadmap for the Philippines, the country’s offshore wind resources are estimated at a potential 178 GW.
