THE PHILIPPINES needs significant investments in power transmission and port infrastructure, as well as stronger financing mechanisms, to unlock its offshore wind energy potential, the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) said.
In a policy brief, Unlocking the Potential of Offshore Wind Energy in South-East Asia, ESCAP said the Philippines has made progress in establishing regulatory and policy frameworks for offshore wind development, but infrastructure and financing constraints continue to hinder project implementation.
The UN commission noted that the Philippines has the most developed offshore wind service-contract mechanism and the most advanced offshore wind auction process among the four Southeast Asian countries examined, the other three being Vietnam, Indonesia and Thailand.
However, ESCAP said no offshore wind projects have been commissioned in the Philippines despite the government’s efforts to identify priority development zones, approve service contracts and introduce a dedicated procurement mechanism.
The other three countries studied also have no operational offshore wind farms.
ESCAP said the Philippines, Vietnam, Thailand and Indonesia share a common need to strengthen and modernize their electricity grids to accommodate growing variable renewable energy.
“The Philippines faces particular constraints due to its archipelagic geography, dispersed generation and demand centers, requiring stronger inter-island transmission, grid reliability and storage, while offshore wind provides an opportunity to support targeted transmission investment and greater interconnection,” it said.
The policy brief also pointed to other barriers across the four countries, including incomplete or evolving regulatory and policy frameworks, complex environmental and permitting requirements, weak grid and port infrastructure, limited bankable revenue mechanisms, underdeveloped supply chains and high capital costs.
ESCAP also noted that the Philippines has identified priority offshore wind development zones but lacks a dedicated national marine spatial planning framework for the industry.
“Significant investment is therefore needed in inter-island transmission, grid reliability, storage and system flexibility, alongside clearer project-delivery arrangements, financing mechanisms, port upgrades and supply-chain development,” it added. — Justine Irish D. Tabile