Danish firm to spend $30M on offshore wind projects
By Lenie Lectura – September 12, 2024
from Business Mirror
Copenhagen Infrastructure New Markets Fund (CINMF), the first 100-percent foreign-owned company to invest in offshore wind (OSW) development in the Philippines, is looking at spending $30 million on the predevelopment phase of its wind power projects in the country.
The company bagged 3 wind energy service contracts from the Department of Energy last March 2023. The contracts are for a 2,000-megawatt (MW) portfolio of OSW projects and 300MW of onshore wind.
The amount already forms part of the roughly $5 billion earmarked for the development of OSW service contracts to be developed in Camarines Norte and Camarines Sur (1,000 MW), Northern Samar (650 MW), and Pangasinan and La Union (350 MW). Each service contract has a 25-year operating period. These OSW service contracts were the first deals signed following the lifting of foreign ownership restrictions on renewable energy development in the country.
“I think what we certainly have our intention until about mid-next year where we expect the GEA (green energy auction program) to take place is to spend roughly $30 million or so on pre-development activities. A good part of that has already been sort of contractually committed,” said Robert Helms, Partner and OSW Lead for the Growth Markets Fund (GMF) of Copenhagen Infrastructure Partners (CIP).
GMF II was put up to focus on developing and building offshore and onshore wind, solar photovoltaic, energy storage and power-to-x projects in select markets across Asia, Latin America and Europe, the Middle East and Africa.
CINMF, meanwhile, is an affiliate of Danish fund manager CIP.
Helms said the company will not “exclude the opportunity” to partner with a Filipino firm. “Local partners are always a fantastic anchor point in any country…We would welcome the discussion. I mean, if there’s anyone out there, certainly we are open to discuss that.”
Rune Damagaard, co-chief executive officer of Copenhagen Offshore Partners, said the OSW projects are expecting financial close by 2026 and commercial operations by 2028.
“I think the construction time is expected to be around a couple of years. Our goal really is to achieve, to commission those, the power plant within the term of the administration.”
The first OSW project being push for commercial operation is the 600MW San Miguel Bay wind power.
CIP inaugurated Tuesday its new Manila office, located at the ORE Building in Taguig City.
“Through this event, we wish to reaffirm our commitment to the country and express our strong intent to develop further projects in the Philippines’ power sector,” said Przemek Lupa, CIP’s Associate Partner in charge of Southeast Asia for the Growth Markets Fund.
