The Department of Energy (DOE) signed a memorandum of agreement (MOA) with the Department of Environment and Natural Resources (DENR) last Friday that would accelerate the exploration, utilization and development of offshore wind (OSW) projects in the country.
The MOA grants these projects rights to use offshore areas covered by offshore wind energy service contracts (OWESCs) including auxiliary areas.
The agencies said in a statement yesterday the agreement specifically allows access to both offshore and auxiliary areas during the pre-development/exploration, development and commercial development phases, subject to necessary requirements.
Within 30 days of the execution of the MOA, the DOE will provide DENR with a list of identified OSW projects which will be regularly updated to reflect new contracts and development activities.
If an area falls within an environmentally critical zone or is subject to prior vested rights, the DENR may impose additional conditions or deny access altogether.
DOE and DENR said the agreement streamlines the process of exploring, utilizing and developing OSW projects while ensuring that environmental safeguards are in place at every stage.
Under the current system, renewable energy projects are required to secure various compliance with the DENR, such as foreshore lease agreements, forest land use agreements and miscellaneous lease agreements, before proceeding with exploration and development.
The MOA provides OWESCs to advance projects without needing separate agreements.
“This MOA is a crucial step in realizing the goal of the administration to deliver the first kilowatt-hours from offshore wind projects by 2028. By streamlining the process for accessing critical areas, we are paving the way for a rapid and responsible rollout of offshore wind projects, which will contribute significantly to our clean energy transition,” said Energy Secretary Raphael Lotilla, in the statement.
In a separate interview in Makati City on Friday, DOE Undersecretary Sharon Garin said the agency is working with Philippine Ports Authority (PPA) on the upgrade of existing ports to cater to OSW projects.
Garin said PPA is verifying the amount needed to improve the Port of Currimao in Ilocos Norte, Port of Batangas in Sta. Clara, Batangas City and Port of Jose Panganiban in Camarines Norte.
The three ports were identified by the PPA as its main focus for possible improvements given their proximity to high-potential OWESCs.
Garin added PPA’s study may likely be completed by next year.
DOE said as of August 15 total awarded OSW contracts stood at 92 equivalent to a capacity of 66,101 megawatts (MW).
Of the 92 contracts, four were awarded to 100-percent foreign owned companies.
All these OWESCs are in the pre-development stage, where assessments on resources, site suitability and project viability are being undertaken.
A study identified the Philippines’ total technical potential for OSW is estimated at 178,000 MW.