The Department of Energy agreed to Monday to reduce the barriers to the development of offshore wind energy in the wake of the strong investor interest in the emerging technology.
“We are pleased with the positive response from local and foreign investors eyeing our RE potential. We are working on policies that would minimize roadblocks, especially for offshore wind installations,” Energy Secretary Raphael Lotilla said.
“In the coming weeks, the DOE will issue the policy and administrative framework for the optimal development of OSW resources, including speeding up the approvals of necessary permits,”. Lotilla said.
He said the agency was working with concerned government agencies, local government units and the transmission concessionaire to implement the directives of President Ferdinand Marcos Jr. under Executive Order No. 21.
Under EO 21, the DOE is directed to publish the policy and administrative framework for the efficient and optimal development of OSW resources in the country within 60 days from its issuance.
The President issued EO 21 on April 19, 2023.
The EO seeks to harmonize and streamline permitting processes and leasing fees under a whole-of-government approach and fully implement the Energy Virtual One-Stop Shop System to cover all relevant government agencies and bureaus.
The DOE said among the available incentives for RE projects under the 2022 Philippine Strategic Investment Priority Plan are income tax holidays, duty-free importation and tax exemption of carbon credits provided under Republic Act No. 9513 or the Renewable Energy Act.
Lotilla welcomed the enthusiasm of local and international investors for unlocking the country’ renewable energy potential.
He said investments in OSW from foreign companies such BlueFloat Energy would bring cutting-edge technology with the company’ plan to leverage its floating wind expertise and experience to develop projects along the Philippine coasts.
Bluefloat Energy’s proposed Philippine projects collectively represent the largest single country planned initiative of BlueFloat at 7,600 megawatts.
BlueFloat Energy announced its market entry in the Philippines through the acquisition of wind energy service contracts in four sites in Bataan, Batangas, Cagayan and Ilocos and Southern Mindoro.
The DOE also received an overwhelming response for the second round of the Green Energy Auction Program with 118 pre-qualified companies that seek to inject capital for 11,600 megawatts of RE capacities between 2024 and 2026.
Lotilla said these investors would work with the various coastal host communities in enhancing the local livelihood opportunities and environmental protection.