The Department of Energy on Thursday signed three offshore wind service contracts with combined capacity of 2,000 megawatts and investment value of $5 billion with Copenhagen Infrastructure New Markets Fund.
CINMF is the first 100-percent foreign-owned company to invest in the country’s OSW development.
“These agreements represent an additional strategic investment and a firm commitment to strengthen the renewable energy sector in the country, particularly the development of OSW. They provide a significant contribution towards a low carbon future as well as encourage the development of the local supply chain,” Energy Secretary Raphael Lotilla said.
The 25-year OSW contracts are expected to accelerate the implementation of the thrust of President Ferdinand Marcos Jr. to develop indigenous and renewable sources of energy.
CINMF, an affiliate of Danish fund manager Copenhagen Infrastructure Partners, entered the Philippine market following the lifting of foreign ownership restrictions on RE development.
The three OSW projects will be developed in offshore Camarines Norte and Camarines Sur (1,000 MW), offshore of Northern Samar (650 MW) and offshore of Pangasinan and La Union (350 MW).
The DOE awarded 57 OSW SCs to date with a total potential capacity of about 42,000 MW that will be developed in the coming years.
The DOE aims to bring the RE share in the power generation mix to 35 percent by 2030 and 50 percent by 2040 from 22 percent.
The three projects are expected to create around 4,500 jobs during the development and operations period, generate enough power to supply about one million households and offset about 2.9 million ton in carbon dioxide emissions a year.
Lotilla said CINMF, a dedicated fund manager with greenfield renewable energy investments and one of the global leaders in OSW, would bring in “financial muscle and technological heft and will be working with Filipino partners throughout the construction and operation phases.” Alena Mae S. Flores
“They will work with the various coastal host communities in enhancing the local livelihood opportunities and environmental protection,” the energy chief said.
CINMF head and CIP partner Niels Holst said the removal of foreign ownership restrictions on RE projects “gave them positive signals to pour in investments in the country. “
“We believe the Philippines holds great potential for low-cost power delivery from high-quality renewable energy projects that would deliver local employment and skills,” Holst said.
CINMF associate partner Przemek Lupa said the three OSW projects are important milestones in CIP’ s renewable energy activities in the Philippines.
“As one of the world leaders in offshore wind, CIP is proud to be the first 100% foreign-owned company to obtain such an award from the DOE, and we look forward to working together with the Philippine government and various authorities and to support their vision of developing and maturing wind and other renewable energy power generation in the country,” Lupa said.
CIP has a market-leading portfolio of green energy projects totaling more than 100 gigawatts and raised about 19 billion euros for energy and associated infrastructure investments from more than 140 international institutional investors.
Danish Ambassador to the Philippines Franz-Michael Melbin said the Filipino people deserve more reliable and cheaper electricity. Denmark introduced wind power to the Philippines in 2004.
“I am proud that Denmark will also be the first country to be part of a fully foreign-owned wind farm in support of the Philippine renewable energy transition,” Melbin said,
The Philippines and the Danish government have a long-standing cooperation in the development of wind power in the country.
The 25-MW Bangui Bay Wind Power Project, developed in 2004 by the Northwind Power Development Corp. in Bangui, Ilocos Norte, was partly funded by the Danish government through the Danish International Development Assistance.
It was a landmark project that paved the way for developing onshore wind power projects in the country and the Southeast Asian region.