Posted on February 12, 2024
The Department of Energy (DOE) is counting on the development of up to 50,000 megawatts (50 gigawatts) of offshore wind power projects to surpass its target of more than 50-percent renewable energy share in the power mix by 2050.
Undersecretary Rowena Guevara said the DOE expects power generation from ten OSW projects with a 6,720 MW (6.72 GW) capacity by 2028 as part of the government’s aggressive push toward clean energy.
“Based on the country’s Nationally Determined Contributions or NDCs, we are pursuing a future energy scenario that is clean, around which we have formulated policies,” Guevara said.
Under the Clean Energy Scenario 2 of the updated Philippine Energy Plan for the 2023 to 2050 planning period, the DOE is looking at a combination of high OSW, nuclear and coal repurposing between 2040 and 2050.
“CES 2 or the high RE with high OSW plus nuclear plus coal repurposing scenario aims to surpass a 50 percent RE share between 2040 and 2050, including nuclear capacities [1,200 MW by 2032], an additional 1,200 MW by 2035, and another 2,400 MW by 2050. In addition, this scenario outlines significant expansions for a 50 GW increase in OSW capacity, as well as strategic initiatives for repurposing coal facilities,” Guevara said.
She said the Philippines has strong potential for OSW estimated at 178,000 MW (178 GW), according to a 2019 World Bank study, leading to numerous service contract applications.
The DOE has awarded 82 OSW energy service contracts as of November 2023, totaling 63,360 MW (63.36 GW), equivalent to 180 percent of the current generation capacity. Projects are mainly located in North Luzon, west of Metro Manila, and various areas in Mindoro, Panay and the Guimaras Strait.
Guevara said the DOE adopted several policies that ushered in the entry of more investments in the RE sector, particularly OSW.
The agency adopted a policy allowing 100-percent foreign ownership in RE projects in November 2023 to attract foreign investments, leading to Copenhagen Infrastructure New Markets Fund, a 100-percent foreign company, investing $5 billion in three OSW projects.
To further support OSW, President Ferdinand Marcos Jr. signed Executive Order No. 21, mandating streamlined processes, rationalized fees and inclusion in the Energy Virtual One Stop Shop system (EVOSS) for OSW permits. EVOSS ensures automatic approval if agencies don’t act within the specified timeline.
Meanwhile, the DOE is working to ensure the readiness of the country’s ports for OSW.
“DOE is coordinating with the Department of Transportation and the Philippine Ports Authority in identifying potential ports and private investors that can upgrade these ports. Prioritization of OSW Port development will dovetail the timeline of OSW developers,” Guevara said.
She said the DOE is also collaborating with Department of Transportation and state-owned Philippine National Oil Co. to identify potential ports and finalize upgrading plans for the Energy Supply Base (ESB) port in Batangas for OSW accommodation.
She said OSW developers highlight four key elements for short-to-medium-term success in OSW projects: a clear regulatory framework for permitting and seabed leasing, dedicated and competitive market support, ports supporting storage, assembly, construction, and operation of OSW farms, and availability of timely transmission system and interconnection facilities.
Guevara said the DOE is also continuously advancing OSW development through funded programs.
