Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Huge potential for offshore wind in Philippines, reports World Bank

© Supplied by RWEBP Japanese offshore wind
Philippines has high hopes for offshore wind

The Philippines could get nearly one-fifth of its power from offshore wind by 2040 under a high-growth scenario that would deliver 21GW of capacity, according to the latest study from the World Bank. However, numerous challenges need to be overcome to realise this commercial potential.

To date, the Philippines department of energy has awarded 30 wind energy service contracts, representing cumulative offshore wind capacity exceeding 20 GW. This underscores the high interest from both local and international companies in the Southeast Asia nation’s offshore wind potential. Indeed, as Energy Voice reported earlier this year, Spain’s Iberdrola is eying five early-stage offshore wind projects in the Philippines, as part of its ambitious push to expand its footprint in the Asia Pacific region.

The total offshore wind potential could be as much as 178 GW, although 90% of that would be in waters deeper than 50 metres and need more complex and expensive floating wind technology, noted the report, published yesterday.

Developing wind power would help the Philippines improve its energy security by cutting its dependence on imported gas and coal, which now fuel more than 70% of electricity generation. It would also help lower greenhouse gas emissions and boost renewable energy supply.

Achieving the 2040 high-growth scenario target of 21 GW offshore wind capacity, up from zero now, would create $14 billion in economic benefits, add 205,000 jobs, as well as help avoid 480 million tons of greenhouse gas emissions, found the World Bank.

There is clear private investment interest in the offshore wind sector, however it could be hampered by a number of challenges that the report identifies. “Some of the major issues include; route to market/offtake agreements; clear permitting process and requirements; transmission availability; as well as restrictions on foreign ownership,” cautioned, Mark Leybourne, senior energy specialist at the World Bank.

The nascent offshore wind market in the Philippines, which is Southeast Asia’s second most populous country, offers exciting opportunities for foreign investors, particularly experienced UK companies, Energy Voice reported last October.

Scenarios For Development

The analysis underpinning the World Bank’s roadmap is based on two possible growth scenarios for the Philippines’ offshore wind industry. Under a low growth scenario offshore wind supplies over 2% of the Philippines’ electricity needs by 2040, reaching around 3 GW of installed capacity. Under the high growth map, more than six times as much offshore wind is installed, in which offshore wind supplies 14% of the Philippines’ electricity needs by 2040, reaching over 20 GW of installed capacity.

Both growth scenarios could deliver substantial benefits to the Philippines; however, results indicate that the high growth scenario could deliver disproportionately larger economic benefits with a lower cost of energy, said the World Bank. In comparison to a low growth scenario, high growth would result in the following: faster cost reductions—32% lower LCOE for offshore wind electricity by 2040, caused by market scale, increased local capabilities, and quicker risk reduction; and over 13 times more local jobs and value added to the economy by 2040.

Frontier offshore wind market in Philippines holds potential for UK firms

The World Bank’s roadmap provides strategic analysis of the offshore wind development potential in the Philippines, considering the opportunities and challenges under different, hypothetical growth scenarios. The goal is to provide evidence to support the Government of the Philippines in establishing policy, regulations, processes, and infrastructure to enable successful growth of this new industry.

The roadmap was initiated by the World Bank country team in the Philippines under the umbrella of the World Bank Group’s (WBG’s) Offshore Wind Development Program—which aims to accelerate offshore wind development in emerging markets—and was funded by the Energy Sector Management Assistance Program (ESMAP) in partnership with the International Finance Corporation (IFC).

Recommended for you

More from Energy Voice

Latest Posts