By The Financial District
Offshore Wind Sector Attracts Foreign Firms
The Philippines' offshore wind sector has attracted the first 100% foreign-owned development following the removal of foreign ownership restrictions on renewable energy projects in the Philippines last year.
Photo Insert: “I am proud that Denmark will also be the first country to be part of a fully foreign-owned wind farm in support of the Philippine renewable energy transition,” Danish Ambassador to the Philippines Franz-Michael Melbin said.
According to the Department of Energy (DOE), it has signed three offshore wind (OSW) service contracts with Copenhagen Infrastructure New Markets Fund (CINMF), an affiliate of Danish fund manager Copenhagen Infrastructure Partners (CIP).
The three projects have a combined capacity of 2,000 megawatts (MW) to be developed in offshore Camarines Norte and Camarines Sur, offshore of Northern Samar, and offshore of Pangasinan and La Union.
Each service contract has a 25-year operating period, the DOE. “These agreements represent an additional strategic investment and a firm commitment to strengthen the renewable energy sector in the country, particularly the development of OSW,” Energy Secretary Raphael Lotilla said.
“They provide a significant contribution towards a low carbon future as well as encourage the development of the local supply chain,” he said.
Once implemented, the three OSW projects are expected to create around 4,500 jobs during the development and operations period, Lotilla said, adding: “These will generate enough power to supply about one million households, and offset about 2.9 million tons in CO2 emissions per year.”
He added: “We are pleased with the entry of CINMF, a dedicated fund manager with greenfield renewable energy investments and one of the global leaders in OSW. They will be bringing in financial muscle and technological heft and will be working with Filipino partners throughout the construction and operation phases. They will work with the various coastal host communities in enhancing the local livelihood opportunities and environmental protection.”
Niels Holst, partner in CIP and head of CINMF, said the removal of foreign ownership restrictions on renewable energy projects in the Philippines in 2022 gave the company positive signals to pour in investments in the country.
“We believe the Philippines holds great potential for low-cost power delivery from high-quality renewable energy projects that would deliver local employment and skills,” Holst said. CIP is one of the global leaders in offshore wind. It manages 10 funds through which it focuses on investments in offshore and onshore wind, solar PV, biomass, and energy-from-waste, among others.
The DOE has identified offshore wind energy as one of its top priorities in the country’s renewable energy sector. The agency has so far awarded 57 OSW service contracts with a total potential capacity of about 42,000 MW that will be developed in the coming years.
The DOE targets to bring the renewable energy share in the power generation mix to 35% by 2030 and 50% by 2040 from the current 22%. The Philippines and the Danish government have a long-standing cooperation in the development of wind power in the country.
Denmark introduced wind power to the Philippines in 2004. “I am proud that Denmark will also be the first country to be part of a fully foreign-owned wind farm in support of the Philippine renewable energy transition,” Danish Ambassador to the Philippines Franz-Michael Melbin said.
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