The Philippines has an estimated 178 gigawatts (GW) of potential offshore wind resources, the World Bank Group (WBG) and the Department of Energy (DOE) said in their “Offshore Wind Roadmap for the Philippines” program aimed to help develop the sector and address the growing demand for power.
The roadmap provides two growth scenarios for the country’s offshore wind sector.
Under the “high growth” scenario, offshore wind can provide 21% of the country’s power supply by 2040. For this to happen, the country would need around $50 billion in capital expenditure to install 20 GW of offshore wind projects by 2040.
“Our analysis of the high growth scenario suggests that offshore wind power could create thousands of jobs by 2040,” World Bank energy practice manager for East Asia and Pacific Region Jie Tang said in a statement.
The World Bank also identified six areas under the “high growth” scenario that could reach a combined capacity of 40GW by 2050. These include Northwest Luzon (3GW), Manila area (1GW), Northern Mindoro (5GW), Guimaras Strait (1GW), the Negros-Panay area (2GW), and Southern Mindoro (28GW), among others.
“This amount of offshore wind energy would also bring our country significant benefits, adding $30 billion in cumulative benefit to the local economy,” Energy Usec. Felix William Fuentebella said during the launch of the DOE-WBG wind roadmap project on Wednesday.
Meanwhile, Under the “low growth” scenario, offshore wind can provide around 3.3% of the country’s power supply by 2040, and five percent or around 6GW of offshore wind power by 2050. This scenario involves two fixed offshore wind projects and five floating projects and is in line with the National Renewable Energy Program.
“The purpose of these scenarios is not to set installation targets but rather to demonstrate and quantify the potential effect of industry scale on cost, environmental and social risks, and economic impact,” the road map document mentioned.
“The Philippines has a rapidly growing demand for power. It is clear from this roadmap that offshore wind can play a major role in meeting our country’s energy demand indigenously, while also accelerating decarbonization,” Energy Sec. Alfonso Cusi said.
World Bank Country Director for the Philippines Ndiame Diop said the road map is the first step in building an offshore wind industry that could contribute to national energy security and efforts in mitigating climate change.
“The Philippines’ waters have conditions that are well-suited to offshore wind. This abundant, indigenous energy resource offers an opportunity for the Philippines to boost energy security, reduce greenhouse gas emissions, and increase renewable energy supply,” Diop said.
The road map will be funded by the World Bank Group’s Energy Sector Management Assistance Program (ESMAP) – a partnership that seeks to help 24 low and middle-income countries to reduce poverty and boost growth through sustainable energy solutions.
“With this roadmap, the DOE will be able to provide guidelines on the potential investment as well as support to our clean energy agency and ensure energy security for the country,” DOE Renewable Energy Management Bureau Dir. Mylene Capongcol said during the launch.
To date, the DOE has awarded five wind energy service contracts, 5GW of which are from offshore wind.