The Department of Energy (DOE) said it issued 92 offshore wind service contracts with potential capacity of 65.049 gigawatts as of March 25, 2024, reflecting the strong interest from local and foreign renewable energy developers.
DOE assistant secretary Mylene Capongcol said in a recent presentation the awarded OSW service contracts are spread in the north of Luzon, west of Metro Manila, north and south of Mindoro, Panay and Guimaras Strait.
Capongcol said of the OSW contracts awarded, four are 100-percent owned by foreign companies.
She cited in her presentation the target of 19 GW of OSW installed by 2050 under the draft Philippine Energy Plan 2023-2050 scenarios.
The Global Wind Energy Council said in its latest report that the Philippines has been exploring OSW since 2020, but progress has been slow.
It said despite strong potential, several challenges existed such as regulation hurdles, seabed lease acquisition, grid connection, ports and supply chains.
It also said that environmental impact and community engagement are critical considerations for wind projects.
GWEC said that as a new sector in the Philippines, OSW would require stable revenue outlook to attract investment.
It said collaboration between the DOE and National Grid Corp. of the Philippines (NGCP) is crucial to identifying suitable substation connection points for the projects and a fair and payment for developers.
GWEC said there should also be focus on project de-risking such as lowering performance bond requirements and mandating technical studies.
“Despite the challenges ahead, there is optimism about wind energy development in the Philippines. With continued government support, favorable technical resource, technological advancements and strengthening market conditions, the sector is poised for growth,” it said.