Energy chief: Offshore wind power draws investor interest

The Department of Energy announced Thursday that several foreign investors, including some from Europe, have signified interest to invest in the country's offshore wind power after the government announced its plan to open up the industry to expedite its development.

"There have been various expressions of interest. There are various nationalities including Europeans who have expressed their interest because as you know, it's the Europeans who have had extensive experience in offshore wind," Energy Secretary Raphael Perpetuo Lotilla told reporters in a press conference.

"I think last time a Danish group, for example, was here and we expect another foreign company to be coming in and meeting with us in a week or so. I think we just have to wait for that new opportunity," he said.

According to Lotilla, the DoE has been receiving a considerable amount of interest both from local and foreign investors on the potential of OSW.

One of the biggest projects is in offshore Ilocos by Buhawid Energy Philippines, a joint venture of Copenhagen Energy, a Danish company, and PetroGreen Energy Corporation, a Filipino-owned company. It has an indicative potential of 1.65 to 2.2 GW of installed capacity for the first stage.

"A robust OSW requires a long-term vision, support infrastructure development, investments, and sound policies. Therefore, it is deemed critical to have a well thought out regulatory framework to enable successful growth of this newer technology," Lotilla said.

Last week, the DoE announced that it is in the process of strengthening and rationalizing the regulatory framework for the development of offshore wind locally to entice local and foreign developers to invest in the country.

To date, there are 42 OSW wind service contracts awarded with an indicated 31.5 GW of installed capacity. The prime areas identified are in Northern Luzon, Verde Island Passage, Northern Mindoro, and Southern Mindoro.

Meanwhile, the German business group in the country extolled the decision of the DoE to amend provisions of the Renewable Energy Act of 2008 in order to allow more foreign players to participate in the sector.

German-Philippine Chamber of Commerce and Industry Inc. executive director Christopher Zimmer cited, in particular, Lotilla's Department Circular 2022-11-0034 tweaking provision of the said law.

Philippine Economic Zone Authority Director General Tereso Panga said Japanese investors have also aired serious intentions in placing investments in the country's renewable energy sector.