WB sees offshore wind investments for PH generation sector – Manila Bulletin | So Good News

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Large-scale offshore wind (OSW) projects in the Philippines should attract major investment in manufacturing, the World Bank says, for products and equipment that will support the deployment of technology installations in the renewable energy (RE) space.

Mark Leybourne, head of the World Bank’s Offshore Wind Program, said in an interview that investor interest in manufacturing depends largely on how well the country can eventually install targeted capacity for offshore wind.

“It all depends on how big the industry will be.” That will determine investments in domestic manufacturing. Will it make sense to come here and build factories?” he said. If the capacity to eventually operate commercially is low, “it’s very difficult to build factories,” he added.

“If we put it in the road map for the Philippines with great foresight, we can get more jobs and investors to set up factories,” he explained.

Although offshore wind investments may not reach a scale that would justify the entry of manufacturing facilities. Leybourne stressed that it is still a proposal that will create jobs for the country for those involved mainly in operations and maintenance (O&M). Project financiers and other employment roles required in promoting a project to commercial operations.

In Southeast Asia, Vietnam is a “tough competitor” to the Philippines when it comes to investments and investments for offshore aviation investments, he said.

“The two big markets here will be Vietnam and the Philippines. I don’t want to say that I am ahead, They have talent and challenges,” he emphasized.

For the Philippine market; There has been positive progress in identifying areas for large OSW potential; He said the recent announcement by the Department of Energy (DOE) has facilitated projects approved in the sector.

“The roadmap contains a set of recommendations on actions that the government and other stakeholders will take to deliver offshore wind. Some of that is being addressed now, and every part of the government. “It’s really important to see that dialogue happens because every part of it is involved, from fishing to aviation to natural resources to power grids and job creation,” said Leybourne.

In charting the prospects for offshore wind development in the Philippines, the World Bank Group identified six key challenges that the government and interested investors need to address: energy costs; transmission or wheeling of generated electricity; environmental and social (E&S) impacts; limited domestic supply chain; Financing and bankability of projects; Project ownership constraints.

When it comes to property limits, With the recent publication of the DOE Circular allowing 100 percent foreign equity in RE projects, it served as an amendment to the policy that was first established in the implementing rules and regulations (IRR Renewable Energy Law).

Regarding the project funding, the World Bank executive said, “There is a need to de-risk investments”, but this is an issue that policymakers and regulators of the country’s energy sector will have to deal with.

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