Manila Bay, 2 others suitable for offshore wind development: market research firm
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that means no new coal power projects other than those that are already in the pipeline.
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There is more push for more bigger and larger renewable energy installations, one of which is offshore wind.
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So, if we get these offshore wind developed in this decade,
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then it will really provide that ease for us and will provide more reserves for electricity in the country.
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All right, Paula, you mentioned decade.
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Now, it's really an understatement to say,
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now is a good time to be talking about additional energy sources and even improving the country's power mix,
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given the power crisis we're experiencing right now.
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But time is really not on our side when you talk about decades now.
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Offshore wind and other large-scale renewable energy development projects may take more years to provide really a sizable supply.
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Is there a way to hasten our progression towards these options?
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What do you think? What do we need? Investments?
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So, actually, the main purpose of our study is to pinpoint which of the sites in the Philippines has the most potential in the near-term development.
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So, not all sites are made equal.
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So, some of them can be easier developed than the others.
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So, we conducted pre-visibility study in the areas of Manila Bay, Tayabas Bay, and the water surrounding Guimaras Island.
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And the study focused on the zones that accommodate fixed-bottom installation to support the government's 2030 renewable energy targets.
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So, with this one, we are looking at the sites, they have wind speeds of greater than 7 meters per second, proximity to major load centers in southern Luzon and western Visayas, areas with relatively shallow water depths of 50 meters, which would allow fixed-bottom foundation wind turbine generation designs, and access to deeper areas for floating in the near future.
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So, the reason why this is such the case is because 90% of the countries offshore...
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wind potential is actually for floating solar, and the technology for floating solar is not yet readily available.
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So, for the available technology, which is fixed-bottom foundation, it's already available, but the areas that will allow it are very limited.
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So, these are Manila Bay, Tayabas Bay, and the ones that we have surrounding Guimaras.
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But for these areas, for example, for Manila Bay and Tayabas Bay, we have already interconnection points available.
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Ports available for assembly.
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So, these are good sites, actually.
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But for example, for Guimaras, higher capacity is available, but it would require more infrastructure, especially in transmission and ports.
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So, as we all know, Panay Island faced power shortage earlier this year due to temporary maintenance shutdown of one of their power plants.
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So, connecting Panay Island to Negros and Cebu with bigger transmission lines will help solve this power issue, and at the same time, will allow absorption.
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And exchange of large-scale renewable energy.
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So, you mentioned, well, Manila Bay, Tayabas Bay, and Guimaras.
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I thought for a moment, this was chosen strategically because of the power crisis in the Visayas where Guimaras can, of course, respond to those needs.
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And then you have Luzon.
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But really, its capacity, it is the type of areas that can provide, you know, maximum potential in terms of harnessing wind energy.
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It is quite surprising.
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But we don't have a lot in the Philippines.
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Are you looking at other areas as well, still?
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We have actually a lot in the Philippines, but the issue with our country is, again, we have really deep waters.
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So, for deep waters, the technology is not yet as mature as the ones that can be done in shallow waters.
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So, for example, we have good areas in Ilocos Norte.
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So, right now, we have onshore waters.
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So, we have a lot of wind in the Burgos-Bangui area.
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But once you go further offshore, then it will be deeper waters and it would require more floating, similar to the other areas in Guimaras.
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I think the issue why we didn't include Ilocos is because they have small ports.
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And if you have small ports, that means that more infrastructure investment is needed in that area.
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So, the nearest port in that area where you can assembly is not that ready for big wind.
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So, the biggest problem is that the port is not ready for big wind.
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So, the biggest problem is that the port is not ready for big wind.
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So, the turbines that we're looking at is around 150 to 250 meters in length.
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So, it would require really big ports.
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Yeah. I was wondering too, Paula, why no selection in areas like the eastern seaboard, if you will?
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I mean, you know, we have a very long coastline there.
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Possibly, the wind potential is also encouraging.
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Why is that not included in the selection?
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And even areas in Mindanao?
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So, there could be a lot of potential there as well.
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Are we looking at those right now?
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So, for the areas in Mindanao, they actually don't have enough wind resource.
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It's not as abundant as the ones that we have in the northern areas of the country and also in western Visayas.
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For the case of the eastern seaboard, it was avoided because one of the deep waters, but also two,
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because it's where the typhoons are strongest.
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So, this is where the typhoons come in and they're so strong.
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That it might actually damage the turbines.
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So, it's not recommended that we put them in those areas.
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Okay. Now, Paula, it is said that, you know, 90% of the Philippines' offshore wind technical potential is in deep waters.
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So, really, long-term offshore wind market in the Philippines will need to focus on, you know, the floating foundation turbines.
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Now, what factors must we consider to tap into this potential knowing how costly this type of project can be?
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I mean, is it possible through public-private partnership or foreign investors?
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What's the direction there?
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So, the DOE actually is currently looking at different types of investment opportunities.
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So, right now, we're DOE studying the ports and what types of upgrades can be done to the ports near offshore wind development sites.
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Another one is transmission upgrades.
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Other than ports and transmission upgrades,
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most will be done like on-site studies like the geotechnical, geophysical studies of these sites
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to make sure that we're not installing in areas that are protected.
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So, these are marine protected areas.
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But also, the Philippines opened 100% foreign ownership for renewable energy projects.
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So, this actually attracts investors.
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So, I think the investment issue that we're looking at right now,
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is more on the transmission side and the port side of things.
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But on the development side of things,
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there is a lot of interest coming in from other countries and international financing institutions
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as well as commercial banks for offshore wind.
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You know, one of the assumptions of your study at Rocky Mountain Institute
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also points to the Philippines as having, you know, promising wind potential and high electricity costs.
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These are factors making us an ideal market to catalyze.
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Are there other countries here that are in a similar situation as ours
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that was able to capitalize on wind energy and what was their experience like, if you can share with us?
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For the rest of Southeast Asia, not yet.
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For example, countries like Vietnam and Indonesia are looking at it as well.
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But I think the success stories that we can share, the ones probably in Taiwan.
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So, there are a lot of countries that are looking at it as well.
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But I think the success stories that we can share, the ones probably in Taiwan.
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So, Taiwan has more shallow waters and they have more consistent wind speeds.
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So, if you think about Batanes, the wind speeds of Taiwan is similar to the ones in Batanes.
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So, they really have good environment for them to install offshore wind.
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There's also a lot of interest coming in from foreign companies in Taiwan
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to make their case and build a pilot in Taiwan
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to show the rest of the region.
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What the potential could be for them.
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All right. Now, we know that government has, of course, mandated
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to prioritize renewable and sustainable energy moving forward now.
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Are policies to push this shift adequate?
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What's your view?
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I mean, how do you think policymakers and regulators should perform?
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Do they do more to accelerate offshore wind energy use in the country?
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Is there enough encouragement for us to really shift in that direction soon?
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So, President Marcos actually signed Executive Order No. 21
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to direct the establishment of the policy and administrative framework
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for offshore wind development in the country.
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And after that, EO21, the DOE and DNR has been working closely
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to work on permitting requirements and other policies needed to make this happen.
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I think what we need to do is to make sure that these policies are in place.
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I think what we need to do is to make sure that these policies are in place.
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I think what we need to do is to make sure that these policies are in place.
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But one of the things that needs to be done, will be more push on the DOE side
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to give NGCP more nudge, to upgrade the transmission lines
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because regardless if you have these offshore wind zones or not,
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if there's no place or if there's no line to connect it to,
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then it won't go to the consumers.
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It's a challenge, I would imagine.
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the Philippines, maybe a scale of 1 to
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1 being just starting.
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Where are we right now?
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are around 4 or 5
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right now, so we're laying all the
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foundations, all the ground. That's already a
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considerable score
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at 5, don't you think?
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Maybe I'm being optimistic, but
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maybe also because I see
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and PNR and the other
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government agencies have been working on this one.
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all the foundation, they're laying all the
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groundwork, they're accepting
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all the help they can get
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from different CSOs and
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even foreign government just to
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really prepare ourselves for offshore wind
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development. And it's a matter of
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identifying, okay,
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which ports do we invest on first?
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Which transmission line do we
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Finally, you know, offshore wind is just
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one of the many options the government
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is looking into right now. In fact,
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a mix of renewable energy, clean
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energy, and even nuclear energy.
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They're even considering
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those possibilities. Now, if you were to make
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a pitch now for offshore wind,
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what would be your best case
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argument for this?
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is one of the best types of
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renewable energy available because
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it provides us with
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economies of scale that
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would provide us with
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more electricity over the
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course of many years in the
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Philippines. It is capital
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intensive, yes, but
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the return would be much
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greater once we have done the
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investments early on.
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All right. On that note, we end
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this conversation. Again, thank you so much for joining
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us today. Paula Valencia,
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Rocky Mountain Institute,
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Senior Associate. It was great talking
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to you. Thank you so
