Full Title: Philippine Market Movers: An Analysis of Three High Potential Areas to Accelerate the Offshore Wind Market in the Philippines
Author(s): Nathaniel Buescher, Justin Locke, and Paula Valencia
Publisher(s): Rocky Mountain Institute
Publication Date: April 24, 2024
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Description (excerpt):
With over 36,000 kilometers of coastline and an estimated total technical potential of 178 gigawatts (GW), offshore wind is gaining attention in the Philippines to improve energy security, lower electricity costs, reduce greenhouse gas emissions, and promote economic growth. With the expected depletion of the Malampaya natural gas field — which supplies fuel for roughly 20 percent of the country’s electricity — by the end of the decade, a looming energy crisis has highlighted the need for accelerated large-scale renewable energy development.
To show the government’s commitment, the country has set a goal of sourcing 35 percent of its energy from renewable sources by 2030 and has directed the Department of Energy (DOE) to establish the policy framework for offshore wind development. As of April 2024, DOE had awarded 92 offshore Wind Energy Service Contracts (WESC), accounting for a total potential capacity of nearly 65 gigawatts, signaling growing interest in a quickly evolving Philippine offshore wind market.
This analysis includes location-specific information such as available wind resources, bathymetry, environmental impacts, social impacts, competing uses, site access via ports, and points of interconnection. The report also includes an overview of offshore wind development and equipment costs and considerations, a summary of the legal and regulatory landscape pertaining to offshore wind, and a discussion of relevant stakeholders who are vital to a healthy offshore wind market.
The Philippines, with its promising wind potential and high electricity costs, is an ideal market to catalyze the offshore wind industry across Southeast Asia.