THE Philippines has the potential to install up to 21 gigawatts (GW) of offshore wind power by 2040 with the right long-term vision, infrastructure development, investment and policies, a roadmap released by the World Bank and the Department of Energy (DoE) showed.
The Philippines Offshore Wind Roadmap launched on Wednesday charts the potential for developing a robust offshore wind industry in the Philippines with two potential scenarios.
In a statement, the World Bank said the low-growth scenario provides a roadmap for installing offshore wind at levels in line with the DoE's national renewable energy program while the high-growth scenario provides a roadmap for installing much higher levels that could be sufficient to drive competition, investments and more cost reduction.
Under the low-growth scenario, the Philippines has the potential to install 3 GW of offshore wind by 2040, accounting for 3 percent of the country's total electricity supply.
This is expected to have an added local gross value of $1.1 billion for the local economy.
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Under the high-growth scenario, the country has the potential to install 21 GW, making up 21 percent of the electricity supply that would add about $14.4-billion gross value to the local economy.
While both growth scenarios are expected to deliver substantial benefits to the Philippines, the roadmap said results indicate that the high-growth scenario "could deliver disproportionately larger economic benefits with a lower cost of energy."
According to the roadmap, the high-growth scenario would result in 32-percent lower cost of electricity (LCOE) for offshore wind electricity by 2040, caused by market scale, increased local capabilities and quicker risk reduction.
To achieve these scenarios, the roadmap provides guidance on actions that must be taken by the government, putting in place a long-term plan for offshore wind until 2050 as part of a decarbonized energy mix; establishing offshore wind development zones through further marine spatial planning; investment in transmission, port and other energy infrastructure upgrades; increasing collaboration with industry and other relevant government agencies; among others.
"The Offshore Wind Roadmap is a momentous occasion for the Philippine transition to renewable energy to achieve our climate goals and build a more sustainable economy and energy system for future generations," said Energy Secretary Alfonso Cusi.
He said one of the next steps that the DoE is taking to build the Philippines' Offshore Wind Industry is a high-level technical study on a representative offshore wind project that could be delivered before 2030.
"It describes all of the main activities that a developer will need to undertake to develop and construct a project and, importantly, how these actions relate to the government's actions and the roadmap's recommendations," he added.
World Bank Country Director for Brunei, Malaysia, Philippines and Thailand Ndiame Diop, for this part, said that with the roadmap, the Philippines is taking its first step toward building an offshore wind industry and contributing to national energy security and efforts to mitigate the effects of 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," he said.