The Department of Energy (DOE) signed three Offshore Wind (OSW) Service Contracts (SCs) with Copenhagen Infrastructure New Markets Fund (CINMF), the first 100 percent foreign-owned company to invest in offshore wind development.
These accelerate the implementation of the thrust of President Ferdinand Marcos, Jr. to develop indigenous and renewable sources of energy. They were entered into following the lifting of foreign ownership restrictions on renewable energy development. CINMF is an affiliate of Danish fund manager Copenhagen Infrastructure Partners (CIP). The three projects have a combined capacity of 2,000 megawatts (MW) to be developed in offshore Camarines Norte and Camarines Sur, offshore of Northern Samar, and offshore of Pangasinan and La Union. Each SC has a 25-year operating period. The signing of the contract was witnessed by Energy Secretary Raphael P.M. Lotilla and Danish Ambassador to the Philippines Franz-Michael Melbin.
“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,” Secretary Lotilla said. To date, there are 57 OSW Service Contracts awarded by the DOE, with a total potential capacity of about 42,000 MW that will be developed in the coming years. The DOE targets to bring the RE share in the power generation mix to 35 percent by 2030 and 50 percent by 2040 from the current 22 percent. Once implemented, the three projects are expected to create around 4,500 jobs during the development and operations period, generate enough power to supply about 1 Million households, and offset about 2.9 Million tones in CO2 emissions per year.
“We are pleased with the entry of CINMF, a dedicated fund manager with greenfield renewable energy investments and one of the global leaders in OSW,” the energy chief said. “They will be bringing in financial muscle and technological heft and will be working with Filipino partners throughout the construction and operation phases. They will work with the various coastal host communities in enhancing the local livelihood opportunities and environmental protection.” According to Niels Holst, Partner in CIP and head of CINMF, the removal of foreign ownership restrictions on renewable energy projects in the Philippines in 2022 was an important event for them as it 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.” For his part, Przemek Lupa, Associate Partner in CINMF, said that these 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.” CIP, one of the global leaders in offshore wind manages ten funds through which it focuses on investments in offshore and onshore wind, solar PV, biomass and energy-from-waste, transmission and distribution, reserve capacity, storage, advanced bioenergy, and Power-to-X. Likewise, CIP has a market-leading portfolio of green energy projects totaling more than 100 GW and has raised approximately EUR 19 Billion for energy and associated infrastructure investments from more than 140 international institutional investors. Meanwhile, Danish Ambassador Melbin said that the Filipino people deserve more reliable and cheaper electricity. Introducing large-scale renewable energy is the fastest way to achieve this. 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”. 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 Corporation (NWPDC) in Bangui, Ilocos Norte, was partly funded by the Danish Government through the Danish International Development Assistance (DANIDA). It was a landmark project that paved the way for developing onshore wind power projects in the country and the Southeast Asian Region.