Development of up to 3 GW of Offshore Wind Power Being Explored in the Philippines
Aboitiz Power Corporation, in partnership with Climate Capital Management and RMI, to explore offshore wind energy potential in the Philippines with support from USTDA.
Manila, Philippines – August 18th, 2022, Aboitiz Power Corporation, a key player in The Philippines energy industry, in partnership with Climate Capital Management and RMI have launched a feasibility study to develop up to three gigawatts (3GW) of offshore wind projects in the Philippines. This work is funded by the United States Trade and Development Agency (USTDA).
The feasibility study aims to advance the existing research on offshore wind power and will include an assessment of the wind resource and identification of competing development projects, among others. Currently, wind power makes up a small but growing proportion of the energy system in the Philippines.
U.S. Secretary of State Antony J. Blinken witnessed the grant signing between USTDA Director Enoh T. Ebong and Aboitiz Renewables First Vice President for Renewable Energy Philippine Development Lee Balangue.
“The United States stands committed to working with The Philippines to achieve a clean energy future together,” said Secretary Blinken. “The signing of the USTDA grant on offshore wind is an important step in that direction.
According to the Department of Energy (DOE), The Philippines has an onshore wind installed capacity of 443 megawatts as of 2020. There is significant potential to expand the generation of wind power, especially offshore where wind farms generate more power because of higher wind speeds. A 2021 study by the World Bank identified the country’s 3 gigawatts (GW) offshore wind potential by 2040, making up 3 percent of the country’s electricity supply. Analysis of the high growth scenario by the Bank shows the potential to install 21GW making up 21 percent of the country’s electricity supply as well as support job creation and low-cost sustainable energy.
“It is our goal to contribute to our country’s energy transition journey by exploring more zero-emissions indigenous energy sources. This offshore wind feasibility study is a step in the right direction as we further diversify our extensive renewable energy portfolio to achieve our goal,” said Emmanuel V. Rubio, President and Chief Executive Officer of Aboitiz Power.
“Unlocking the offshore wind sector requires significant early-stage development funding,” said Mason Wallick, Managing Director and Chief Executive Officer of Climate Capital. “We are delighted to support this and believe offshore wind could prove a significant source of green energy for The Philippines.”
“RMI is proud to partner with Aboitiz Power Corporation, USTDA and Climate Capital Management on this exciting initiative. Through our engagement, RMI aims to unlock private sector investment in offshore wind and utility scale clean energy power projects in The Philippines and the broader Southeast Asia region,” said Justin Locke, RMI Global South Program Managing Director.
With a rapidly rising energy demand and goals to increase renewable energy shares in The Philippines’ energy mix, the study will provide useful guidance to the government’s roadmap to secure clean energy access for all, economic growth, and support decarbonization efforts in the country a reality. The feasibility study is expected to conclude by mid 2023.
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Strategic Communications Manager, RMI Global South Program
Notes to Editors
The U.S. Trade and Development Agency helps companies create U.S. jobs through the export of U.S. goods and services for priority infrastructure projects in emerging economies. USTDA links U.S. businesses to export opportunities by funding project preparation and partnership building activities that develop sustainable infrastructure and foster economic growth in partner countries.
About Aboitiz Power
Aboitiz Power is one of the leading power companies in the country pushing for clean energy generation. In 2021, the company announced plans to invest P190 billion to expand its renewable energy portfolio by 2030. The company’s portfolio currently includes solar, onshore wind and hydro.
About Climate Capital
Climate Capital is a Singapore-based company that identifies and creates investment opportunities in high-growth markets where the deficit in infrastructure and responses to climate change offer the potential to deliver sustainable investor returns and to accelerate the energy transition. RMI is a global organization working in the United States, Caribbean Islands, Africa, India, China and Southeast Asia to decarbonize the electricity, building, and transport sectors, among many others.
RMI is an independent nonprofit founded in 1982 that transforms global energy systems through market-driven solutions to align with a 1.5°C future and secure a clean, prosperous, zero-carbon future for all. We work in the world’s most critical geographies and engage businesses, policymakers, communities, and NGOs to identify and scale energy system interventions that will cut greenhouse gas emissions at least 50 percent by 2030. RMI has offices in Basalt and Boulder, Colorado; New York City; Oakland, California; Washington, D.C.; and Beijing.