PHL hopes to attract more offshore wind power investments

THE government is hoping to attract more offshore wind power projects, after the Board of Investments (BoI) approved three offshore wind projects worth a total of P390 billion in the first quarter.

Trade Secretary Alfredo E. Pascual said the three offshore wind power projects of wpd Philippines have a total capacity of 1,300 megawatts (MW) and are located in Cavite, Negros Occidental, and Guimaras.

In his speech at the Offshore Wind Conference in Taguig City on Thursday, Mr. Pascual said the Philippines is a suitable place for offshore wind investments due to its geographical position.

'Renewable energy isn't merely an option for us but a necessity. Thus, our government is ardently promoting using and developing renewable energy sources,' he said.

Mr. Pascual said the country needs 52,800 MW of renewable energy capacity to achieve its target of having 50% share of renewable energy in the country's power generation mix by 2040.

'Energy demand in the Philippines is growing in line with our country's projected strong economic growth at 6% to 7% in this and the coming years. The demand for energy, especially for green energy, is expected to outpace our current supply level,' Mr. Pascual said.

'We, therefore, welcome Chinese and other foreign investment in renewable energy projects in the Philippines,' he added.

Investors in renewable energy such as wind power can avail of tax and other incentives under the 2022 Strategic Investment Priority Plan (SIPP) and the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE). The Renewable Energy Law also offers income tax holidays, duty-free importation, and tax exemption of carbon credit.

In April, President Ferdinand R. Marcos, Jr. issued Executive Order No. 21, which mandated the creation of a policy and administrative framework for the development of local offshore wind resources, as well as the integration of required permits to the Energy Virtual One Stop Shop system.

As of December 2022, the country awarded 190 onshore and offshore wind energy service contracts.