Offshore wind project process streamlined

By Ed Paolo Salting – October 7, 2024
from The Manila Times

THE Department of Energy (DoE) on Sunday said it had signed a memorandum of agreement (MoA) with the Department of Environment and Natural Resources (DENR) granting energy developers the right to use offshore areas, including auxiliary areas in the pre-development stage, to accelerate the exploration, utilization and development of offshore wind projects.

Under the present system, renewable energy projects need various compliance documents from the DENR such as those for foreshore lease, forest land use, and miscellaneous lease agreements, before exploration and development can proceed.

With the new agreement, the DoE said that an offshore wind energy service contract would suffice for the projects to proceed.

“This MoA is a crucial step in realizing the goal of the administration of President Ferdinand R. Marcos Jr. to deliver the first kilowatt-hours from offshore wind projects by 2028. By streamlining the process for accessing critical areas, we are paving the way for a rapid and responsible rollout of offshore wind projects, which will contribute significantly to our clean energy transition,” Energy Secretary Raphael P.M. Lotilla said.

Within 30 days of the MoA’s implementation, the DoE will provide the DENR with a list of identified offshore wind projects, which will be regularly updated.

However, the DoE pointed out that if an area was within an environmentally critical zone or subject to prior vested rights, the DENR may impose additional conditions or reject the contract altogether.

On Friday, Energy Undersecretary Sharon Garin gave an update on the establishment of more ports for offshore wind development.

“We are working hard… and it has not been an easy task. As to where we will get the budget, the Philippine Ports Authority (PPA) will find out if it can shoulder the construction cost of the ports. If not, maybe they can get funding from other sources. For now, the PPA said it will finish first the asset evaluation, and by next year we will see how much is really needed,” Garin said.

Three ports are deemed critical for offshore wind development: Currimao in Ilocos Norte; Batangas in Sta. Clara, Batangas City; and Jose Panganiban in Camarines Norte.