THE Global Wind Energy Council (GWEC) said the Philippines is “off to a good start” with the government showing a strong political will in developing the offshore wind (OSW) market.
For the Philippines to fully capitalize on these offshore wind opportunities, the government needs to refine existing policies and scale up the local supply chain, the group said in its country-focused offshore wind supply chain analysis released on Wednesday.
The report highlighted the need to address concerns on the the existing supply chain for OSW in the Philippines.
GWEC said in terms of development services, local companies have a “significant opportunity” to capture much of the market share in the development phase of OSW projects as they typically require minimal investment and have low barriers to market entry.
The report added the country has a strong steel manufacturing capabilities which could produce secondary steel components and paired with investments into relevant equipment and training programs.
The group said the cement industry can service floating substructures despite the lack of immediate demand.
GWEC said since the Philippines is considered as the fourth largest ship producer in the world with 124 shipyards and around 48,000 employees as of end-2022, the local industry can “broaden its capabilities and play a pivotal role in supporting OSW projects.”
The report said the country’s local cable industry has significant opportunities for OSW projects, “provided that investment is made.”
The report said local manufacturers are able to supply copper cables domestically.
The GWEC analysis also noted the availability of skilled seafarers and technical workers that are sought-after globally for their expertise, craftsmanship and English proficiency which will be vital in the installation and maritime operations of OSW projects.
The group said the Philippines can optimize and prepare the skilled workforce to service OSW projects.
“If we look at the accelerated offshore development scenario – one that is driven by strong policies, high industry engagement and favorable economic conditions – we can expect 8.5 gigawatts (GW) of offshore wind to be built by 2034 in the Philippines,” said Ann Margret Francisco, GWEC country manager for Philippines.
Francisco said GWEC has been working closely with key government agencies, local associations and other stakeholders to advance critical policy work streams and create a supportive ecosystem for OSW development that not only attracts investments but also ensures long-term viability and competitiveness.
“For the supply chain to expand effectively, suppliers will need to undertake substantial investments that depend on reliable markets, dedicated project pipelines and access to a regional marketplace,” said Raimond Dasalla, Philippine Expert Consultant at ERM, the group which assisted GWEC in coming up with the report.
Dasalla said the government must enhance incentives to attract supply chain participants and invest in capacity-building efforts.
The Department of Energy said the country’s total awarded OSW contracts are at 92 equivalent to a potential capacity of 68 GW.
Of the 92 contracts, four were awarded to 100-percent foreign owned companies.
However, all these offshore energy service contracts are currently in the pre-development stage, where assessments on resources, site suitability and project viability are being undertaken.
