EO 21 to boost offshore wind development

MANILA, Philippines — The Department of Energy (DOE) expects the development of the country’s offshore wind resources to accelerate following the issuance of President Marcos’ Executive Order (EO) 21.

The DOE said EO 21 would speed up the rollout of offshore wind projects in the country by mandating a policy and administrative framework for the optimal development of offshore wind resources.

“With heightened investor interest in energy projects, especially in renewable energy, it is crucial to have a clear framework that would speed up the development of offshore wind and speed up approvals of necessary permits,” Energy Secretary Raphael Lotilla said.

To provide clarity, the landmark order harmonizes and streamlines permitting processes and leasing fees for offshore wind projects under a whole-of-government approach and fully implements the Energy Virtual One-Stop Shop (EVOSS) system to cover all relevant government agencies and bureaus.

The DOE, under EO 21, is directed to put together the development and issuance of a policy and administrative framework for the optimal development of offshore resources in the country.

This includes the integration into the EVOSS system of various permitting processes by the permitting agencies.

“We will work together with the concerned government agencies, local government units and the transmission concessionaire to implement the President’s directive,” Lotilla said.

The DOE has identified offshore wind energy as one of its top priorities in the country’s renewable energy sector.

Last year, the Philippines Offshore Wind Roadmap was launched, showcasing the country’s potential offshore wind resources estimated at 178 gigawatts (GW).

To date, the DOE has awarded a total of 63 offshore wind contracts with a total potential capacity of 49.928 GW.

The agency said such capacity is enough to supply the country’s future electricity demand.

The prime areas identified for offshore wind energy potential in the country include Northern Luzon, Verde Island Passage, Northern Mindoro and Southern Mindoro.

The DOE has placed current rule of thumb for offshore wind project investment at about $5 million per megawatt (MW), which is expected to go down in the coming years with more deployment.

Average time span for offshore wind project to develop and see its first wind turbine erected could take anywhere from six years to nine years.

Lotilla earlier said partnerships are a key strategy in harnessing the power potential of offshore wind resources as it requires intensive capital cost and highly skilled manpower resource.

He said these would not only expedite the development process, but would also help in facilitating operational knowledge transfer and providing access to technologies as well as unlock job opportunities.

The development of offshore wind resources is expected to contribute in achieving the country’s aspirational target of 35 percent renewable energy contribution to the energy generation mix by 2030, and and 50 percent by 2040.