Philippines_OSW Potential an analysis and takeaway

Offshore wind in Philippines

1. Offshore Wind Potential In
Philippines
Presented by Debarshi Gupta
to
Nangia Andersen LLP

2. Off-shore Wind : Enabling Factors
Over 36,000 kilometers of coastline
178 GW estimated technical potential for off-shore wind
Expected depletion of the Malampaya natural gas field
Goal of sourcing 35% of its energy from renewable sources by
2030
Policies to improve energy security and reduce greenhouse gas
emissions
Higher capacity utilization factor and lesser land requirement
in comparison with on-shore wind

3. Off-shore Wind : Potential
•Large areas of the country’s coast have extractable wind resources with around 8 m/s
wind speeds in most of the zones
•Around 90 percent of resources is found in waters deeper than 50 meters requiring use
of floating off-shore wind turbines
•Six potential offshore wind development zones identified with likely lower
environmental and social impacts
•Combined capacity of six zones is estimated to be 40 GW which significant when
compared with the country’s total generation capacity of around 26 GW in 2020
Offshore Wind Zone Potential Capacity (Approx.)
North-west Luzon 3 GW
Manila Area 1 GW
Northern Mindoro 5 GW
Southern Mindoro 28 GW
Guimara Strait 1 GW
Negros Panay West 2 GW
Source : World Bank

4. Off-shore Wind : Scenarios
Parameters
Low Growth Scenario High Growth Scenario
2030 2040 2050 2030 2040 2050
Cumulative Installed
Capacity (GW)
1.60 3.20 5.60 2.80 20.50 40.50
Capacity Factor for
Projects Installed in
the Year (%)
37.00 46.00 49.00 39.00 48.00 50.00
Cumulative Energy
Production (TWh)
5.10 82.80 239.30 8.40 393.20 1592.20
LCOE for Projects
Installed in the Year
(US$/MWh)
77.00 63.00 50.00 82.00 47.00 34.00
Source: World Bank
Potential for off-shore wind energy in Philippines is summarized through different
parameters in low growth and high growth scenarios

5. Off-shore Wind : Challenges
High
Capital
Cost
High cost of off-shore wind technologies as compared to other renewable energy
technologies can be overcome only through market scale competition and
innovation
Evacuati
on
Infrastru
cture
Some the country’s best off-shore wind resources are located far from demand
centers and therefore lengthy new transmission lines adding further to landed
cost of electricity
Project
Ownersh
ip
Currently, upper caps on ownership of off-shore wind projects for international
partners act as a major hindrance in large scale financing for OSW projects

6. Thank you