Danish investors interested in auction for smart grid investment plan


Danish investors are eyeing multi-billion power transmission projects that the government is planning to offer through the Smart and Green Grid System (SGGS) development platform. 

In a report by the Manila Bulletin, Denmark Ambassador to the Philippines Franz-Michael Mellbin said that Danish firms are looking at the planned creation of a parallel grid that would support large-scale operations of renewable energy (RE) installations, mainly for offshore wind. 

Mellbin continued by saying that Danish investors would be eager should the nation put up a desirable system involving a stable policy and regulatory frameworks that would welcome investments as there are many specialists from these renewable energy firms and investors who are familiar with operating in this type of system. 

The Department of Energy (DOE) announced its intention to reach out for foreign funding for the SGGS development, which could require up to Php 500 billion worth of investments and be made available through a public-private partnership (PPP) arrangement. 

The energy department planned to conduct a bidding process for the SGGS project through the National Transmission Corporation (TransCo). Additionally, the design of the parallel grid would be in line with the National Grid Corporation of the Philippines (NGCP) to ensure seamless unification with the country’s power grid operations.

The PPP contract is expected to be in effect for 25 years in order to give investors the opportunity to completely recover the amount of capital invested in these infrastructure development projects. 

Offshore wind capacity that would be added to the power mix may reach 50 gigawatts (GW) by the middle of the century and would be a part of the Philippine’s overall decarbonization pathway as well as promote the development of RE to 35% by 2030 and 50% by 2040.