Global Wind Energy Council flags hiccups in PH’s offshore wind goals
Developing a Philippine offshore wind energy segment remains challenging amid red tape and supply chain constraints, among other factors, according to the Global Wind Energy Council. (Photo from GWEC website)
MANILA, Philippines — Delays loom over efforts in the Philippines to build an offshore wind energy market amid chokepoints in infrastructure, capital and supply chain, according to the Global Wind Energy Council (GEWC).
GEWC said in a report the Philippines has made policy advancements to cement its name as a key investment zone.
The government has a target of seeing the fist kilowatt-hours from offshore wind farms delivered by 2028. Thus, it has started laying the groundwork to gain the confidence of investors.
These include opening the sector to 100-percent foreign ownership, the launch of energy virtual one-stop shop (EVOSS), and sealing deals with concerned agencies to speed up permitting processes and upgrade port facilities.
However, the report said pursuing the projects remains “challenging” given the bureaucratic red tape haunting the developers.
Industry players earlier said that energy producers still need a minimum of six months to complete all the necessary permits.
“Developers must navigate multiple layers of approvals from both national and local agencies, leading to extended processing times,” GWEC said.
“Grid connection approvals still take a long time to process, creating bottlenecks in project timelines,” it added.
Supply chain constraints could likewise lead to “a significant risk,” GWEC said. “The local manufacturing base for wind turbine components, installation vessels, and port facilities remains underdeveloped, increasing reliance on imports.”
The group also noted a lack of wind-ready ports and transmission infrastructure. This creates logistical bottlenecks that impact on project execution timelines.
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Financial hurdles were also branded as “another crucial barrier” in realizing offshore wind parks.
Citing data from the World Bank Group, GWEC said offshore wind projects require a hefty upfront budget. This usually ranges from $3 to $4 million per megawatt.
GEWC urged the government to further explore carbon markets and renewable energy certificates to support wind projects. It also suggested developing the local supply chain for components.
“Government-backed incentives, in collaboration with private sector investments, can catalyse the establishment of local production facilities, reducing reliance on imports and fostering economic growth,” it said.
Meanwhile, GWEC lauded the government’s green energy auction program, with the fifth round focusing on offshore wind developments.
The program is seen as showing a “proactive approach” to expanding renewables.
The Philippines has set a target of growing clean energy in the power generation mix to 35 percent by 2030 from 22 percent at present.
