CIP clears Philippines hurdle as Marcos musters offshore wind investors
Nation has been removing restrictions on foreign ownership and offering a policy framework to attract investment
Denmark's Copenhagen Infrastructure Partners (CIP) has become the first renewables developer to secure environmental compliance certification for a major offshore wind project in the Philippines, according to the Philippines News Agency (PNA).
An environmental compliance certificate (ECC) was issued to CIP for the 1GW Camarines Sur wind farm project, according to a report by the government-owned news service.
“With this in place, we have initiated offshore site surveying, a critical step in advancing the project’s development,” said Rune Damgaard, the offshore wind co-chief of CIP's operational unit, Copenhagen Offshore Partners (COP).
The PNA report was based on a statement issued by the Royal Danish Embassy in the Philippines.
All renewable energy projects in the Philippines are first required to secure an ECC from the country's Department of Environment and Natural Resources (DENR) as an initial pre-development step.
“CIP, can now proceed with exploration and pre-development activities that are essential in jump-starting the growth of offshore wind in the country and contribute to achieving the Philippines’ long-term energy security objectives,” Energy Secretary Raphael Lotilla was quoted as saying.
Danish Ambassador to the Philippines Franz-Michael Mellbin commented: “Wind power is one of the ways the government can bring abundant, affordable, and reliable way to every Filipino and ensure continued growth and prosperity for the nation.”
CIP is planning to invest about 170bn Philippine pesos ($2.5bn) in the San Miguel Bay offshore wind project, which is targeted to be operational by 2028, PNA reported.
In March 2023, CIP signed 25-year offshore wind service contracts with the Philippines’ Department of Energy (DOE) for three offshore wind farms totalling 2GW in capacity.
The firm opened a new office in Manila in September.
Marcos seeks foreign investment
The Philippines' President Ferdinand Marcos Jr has become a keen advocate of offshore wind power in the country, and removed restrictions on foreign ownership in the sector in 2022, followed by measures designed to streamline the permitting process.
Previously, a 40% foreign equity limitation on public land, and on the exploration, development, and utilisation of natural resources, was identified as a possible hindrance on investment.
A presidential decree last year offers a basic policy and administrative framework for offshore wind development and related grid development.
In a statement issued by the presidential office last week, Marcos said his economic team has been working to "ease the bottlenecks hindering foreign investment in offshore wind projects".
The DENR and DoE signed a memorandum of agreement, allowing the utilisation of offshore and auxiliary areas covered by what are still described as offshore wind energy service contracts.
“This addresses impediments to the development of offshore wind projects by foreign investors, and streamlines the process, while ensuring compliance to environmental standards,” the EDG stated.
Special Assistant to the President for Investment and Economic Affairs (SAPIEA), Frederick Go, who chairs the EDG, added: “This important development supports our goal of positioning the Philippines as a preferred investment destination. This agreement augurs well for the renewable energy sector, which is one of the administration’s priorities in driving economic growth.”
Potential
In April 2022, the World Bank and the Philippines’ Department of Energy (DOE) published a Philippines Offshore Wind Roadmap describing potential to install as much as 21GW of offshore wind capacity by 2040, given the right kind of policy support.
The Marcos administration is planning to launch its tender soon, but local media reports suggest this is unlikely to occur until 2025.
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