DOE seeks one-stop shop processing for wind projects
By Myrna M. Velasco – November 11, 2022, 4:15 PM
from Manila Bulletin
The Department of Energy (DOE) is pushing for the issuance of an Executive Order (EO) to create a one-stop shop permitting process for offshore wind power projects to stimulate capital flow into that segment of the renewable energy (RE) sector.
Energy Secretary Raphael Lotilla cited the importance of Malacanang EO because of the “nascent nature of OSW (offshore wind)”. He said President Ferdinand Marcos has already approved the concept of an offshore wind one stop shop (OWOSS) through the issuance of an EO.
Lotilla said that once the EO is in place, the timelines, and processing of OSW applications will be incorporated in the existing Energy Virtual One Stop Shop (EVOSS) system.
As of press time, however, the energy department has not given explanation as to how that one-stop shop permitting shall be differentiated from the prevailing system of permitting for other RE projects.
Stakeholders expect the new EO to resolve water rights as well as fishing rights involved in the deployment of offshore wind technology; as well as the potential territorial dispute at the West Philippine Sea, if there are conflict areas that could be traversed by the targeted installations.
The DOE added the objective of the Presidential directive “is to streamline processes and requirements of these agencies and the grid operator.”
It further cited the need to revisit the existing 42 offshore wind service contracts “to better reflect reasonable timelines and divide into clear phases,” including those on data acquisition, study phase and permitting; development plan, grid integration and final investment decision phase; construction, installation, and connection phase; commissioning and production phase; and decommissioning phase.
The development of offshore wind farm projects takes long gestation period – and it could stretch 5 years or even longer to bring projects to commercial fruition.
Offshore wind is already a flourishing technology deployment in most markets, even in the Asian region, but the Philippines is apparently a laggard on this investment terrain.
As things stand today, many investors are complaining of non-responsive government officials when they raise concerns of project permitting gridlocks; and there is also lack of coordination between and among the various agencies involved in the approval of investments.
Still, the DOE stated “the proposed EO would spell out the regulatory framework in building a robust OSW industry and covers a long-term vision, infrastructure development, investments and sound policies.”
According to the department, the rollout of offshore wind projects will require processing through “more than 10 government agencies.” Apart from the DOE, the other agencies involved are the Bureau of Fishery and Aquatic Resources (BFAR); the Philippine Coast Guards (PCG); National Mapping and Resource Information Authority (NAMRIA); the Department of Environment and Natural Resources (DENR) for environmental compliance certificate; Maritime Industry Authority (MARINA); Philippine Ports Authority (PPA); Bureau of Customs (BOC); local government units (LGUs); Philippine National Police (PNP); Bureau of Immigration; Department of Science and Technology; Philippine Space Agency and the Philippine Navy.
The agency similarly indicated that one aspect that will be critical to the timely and massive rollout of offshore wind farms is the development of a marine spatial planning (MSP) system aligned with the best international industry practice.
As explained, the MSP is a practical way to establish a more rational use of marine space and the interaction among its uses, to balance demands for development with the need to protect the environment, and to deliver social and economic outcomes in an open and planned way.
