The Department of Energy (DOE) has signed three offshore wind (OSW) contracts with Copenhagen Infrastructure New Markets Fund (CINMF), making it the first fully-foreign-owned company to invest in offshore wind developments in the country.
The said projects have a combined capacity of 2,000 megawatts (MW) which will be developed in offshore Camarines Norte and Camarines Sur, offshore Northern Samar, and offshore Pangasinan and La Union.
Each service contract has a 25-year operating period.
“These agreements represent an additional strategic investment and a firm commitment to strengthen the renewable energy sector in the country, particularly the development of OSW. They provide a significant contribution towards a low carbon future as well as encourage the development of the local supply chain,” Energy secretary Raphael Lotilla said in a statement.
CINMF head Niels Holst said that the removal of foreign ownership of renewable energy projects is a positive signal in pouring in investments in the country.
“We believe the Philippines holds great potential for low-cost power delivery from high-quality renewable energy projects that would deliver local employment and skills,” Holst said.
CINMF is an affiliate of Danish fund manager Copenhagen Infrastructure Partners (CIP).
Danish Ambassador to the Philippines Franz-Michael Melbin said introducing large-scale renewable energy projects is the fastest way to achieve reliable and cheaper electricity in the country.
“I am proud that Denmark will also be the first country to be part of a fully foreign-owned wind farm in support of the Philippine renewable energy transition,” Melbin said.
The 25 MW Bangui Bay Wind Project in Bangui, Ilocos Norte was partly funded by the Danish Government through the Danish International Development Assistance (DANIDA).