AS energy experts all agree on the need to ramp up the push for renewable energy (RE), presidential frontrunner Ferdinand “Bongbong” Marcos Jr. vowed that a Marcos administration would give priority to regulatory and policy reforms enabling the country to realize its potential as a major offshore wind power producer globally.
Wind power, along with other RE sources, can help the country lower its electricity rate over the long term and become a competitive destination for foreign investments in a post-pandemic environment, the UniTeam presidential bet stressed.
“We have the potential to be a major wind power producer in the world. Our unique topography is very suitable for building offshore wind farms and we should take advantage of it to produce cheap electricity,” Marcos said.
“We need to be competitive in a post-pandemic global economy and having low electricity rates is crucial in drawing in more foreign direct investments as we pursue aggressive growth targets,” Marcos added.
According to 2019 data, the Philippines ranks third among Asia countries with the most expensive power rates at P10 per kWh, after Japan and Singapore.
Marcos is also hoping for the completion of the offshore wind power road map being developed by the Department of Energy (DOE) and the World Bank Group, which is expected to be ready within the month.
The offshore wind power road map will ensure that adequate rules and regulations are in place to guide the government in working with all industry stakeholders.
“It would be good to have the road map completed at the soonest possible time since it will provide us with the policy framework to fast-track the deployment of wind farms in the country,” Marcos said.
According to the World Bank Group, the Philippines has approximately 170 gigawatts (GW) of untapped offshore wind potential.
To date, the DOE has awarded five wind energy service contracts with a combined capacity of 1.85 GW for offshore wind projects; Guimaras Strait
(100 MW), Aparri Bay (100 MW), Guimaras Strait II (600 MW), Frontera Bay (450 MW), and San Miguel Bay (600 MW) which are all expected to be completed in 2031.
The DOE has also received nine additional letters of intent for offshore projects with a total capacity of 12 GW.
“Low electricity rates and a steady supply of it are important considerations for would-be investors. As such, we are pushing for the wider use of renewable energy sources as we veer away from our reliance on imported oil,” Marcos stressed.
A Norwegian consulting firm predicts that offshore wind’s contribution to the energy mix of nations will increase to 40 percent of total wind energy production from 29 GW in 2019 to 1,748 by 2050.
The firm also expects that technological breakthroughs in floating offshore wind, another subsector, would widen its adoption, as such would redound to reduced costs and increased production.