MANILA, Philippines — President Marcos has approved the Department of Energy (DOE)’s proposal to explore and develop the Philippines’ offshore wind potential as part of efforts to ensure energy security.
Marcos directed energy officials to proceed with their offshore wind energy production initiatives during a meeting yesterday in Malacañang, a statement issued by the Office of the Press Secretary (OPS) said.
It said the President had given the DOE “the greenlight for its plan,” which includes energy officials’ suggestion to create an Offshore Wind Development and Investment Council to be composed of relevant state agencies.
This council will serve as a one-stop shop for offshore wind developers.
The OPS said Marcos is in favor of the proposal but wants the DOE to handle its regulatory functions to streamline coordination and simplify the approval process.
“It should be the Department of Energy who should be talking with the OSW (offshore wind) developers, in consultation with the council, of course. It has to be led by the DOE,” a Palace statement quoted the President as saying.
There are 42 approved offshore wind contracts with an indicated capacity of 31,000 megawatts, according to the DOE.
The agency said the private sector, especially those from countries considered leaders in offshore wind technology like Denmark, Norway and the United Kingdom, have expressed strong interest in undertaking projects in the Philippines.
Citing the World Bank’s offshore wind roadmap, the DOE said the Philippines has the capacity to deploy 40 gigawatts of offshore wind electricity by 2050.
“This is more than enough to cover the 500,000 MW projected peak demand the country will require by 2040 based on DOE’s medium- to long-term power outlook,” Energy Secretary Raphael Lotilla said.
The power generated by offshore wind projects can address the Philippines’ energy needs and can be used to produce alternative fuels, such as green hydrogen, the energy chief added.
The DOE has signed a memorandum of understanding with a Japanese and an Australian firm to expedite hydrogen research, the OPS statement said. Hydrogen may be converted into ammonia, which is a primary component in the production of industrial fertilizers used in agriculture.
Power outlook
In its November 2022 to December 2023 outlook, the DOE said power reserves in Luzon may fall below ideal levels with the continued shutdown of the Ilijan Power Plant in Batangas City, which has a total capacity of 1,200 MW.
“As a contingency, the energy department proposes to run the Ilijan Power plant, a dual-fuel power station in Ilijan, Batangas City, using diesel fuel to produce 420 MW, as well as implement the Interruptible Load Program,” the OPS said.
The DOE is closely coordinating with other agencies to address the delays in the National Grid Corporation of the Philippines (NGCP)’s transmission line projects to free up power capacity for 2023.