DOE vows to help investors with financing options for offshore wind projects
By Alena Mae S. Flores – October 25, 2023, 7:10 pm
from manilastandard.net
The Department of Energy (DOE) said it is helping the private sector with the financing options for offshore wind (OSW) developers including a possible sovereign guarantee from the Philippine Guarantee Corp.
Energy Secretary Raphael Lotilla said in a speech during the DOE-USAID Capacity Building Workshop for OSW Development Tuesday that private sector collaboration is imperative for the department to achieve its goals, specifically the increased renewable energy capacity.
He also said DOE and USAID were helping upskill Filipinos to prepare them for the entry of emerging technologies such as OSW.
“We are exploring variations of financing that offer a range of energy funding solutions, including a sovereign guarantee from the Philippine Guarantee Corporation. We also expanded our options for private sector engagement so that RE developers can compete under our green energy auction openly and transparently,” Lotilla said.
Lotilla did not give specifics on the kind of assistance to be extended by PGC, the principal agency for state guarantee finance of the Philippines.
Lotilla said to entice private sector participation in the RE industry, the DOE issued several enabling policies that open new opportunities for international investments.
“The Philippines now allows 100-percent foreign ownership for renewable energy technologies in geothermal, biomass, solar, wind, ocean, and tidal wave,” the energy chief said.
He said power supply has been adversely affected by global challenges that hindered continuous operations such as trade, finance, health, and a disrupted workforce due to the COVID-19 pandemic for the past three years.
He said the supply chain disruption not only highlighted international inter-dependencies that exposed the country’s vulnerability but also “the urgency to support our ability to remain agile and resilient to external socio-economic pressures.”
“We need to shift into higher gears in harnessing and developing our country’s wealth of indigenous resources. These challenges served as catalysts for the DOE to take actions that enhance our energy security and strengthen our energy resilience,” he said.
Lotilla said in the updated Philippine Energy Plan (PEP) which will be released soon, the DOE included OSW in the RE portfolio to help achieve 35 percent of RE in the power generation mix by 2030 that will lead to a clean and sustainable energy future.
“Our clean energy scenario envisions a string of mitigation and adaptation initiatives that include, among others, a 50 percent share of RE in our grid mix by 2050,” he said.
Lotilla said the DOE, in partnership with the USAID – Energy Secure Philippines, aims to present a series of OSW development workshops that aligns with the government’s thrust to right-skill and upskill Filipino workers to remain competitive and relevant in the global shift to alternative energy development and technological advances.
“We are happy to note that the training design was targeted to focus on the varying needs of skills building by the different stakeholders such as government agencies, RE developers, banks, and other financial institutions,” he said.
He said the DOE would also conduct a competency mapping of skills in OSW energy, as well as reaffirm or update our skills for mature and emerging technologies such as hydro, biomass, solar and floating solar.
“The baseline mapping of our competencies is fundamental in crafting the correct pathway towards sustaining proficiency that will ensure a steady flow of workers who will have world-class technological skills to support not only our growing portfolio of emerging alternative energy sources but also qualify for premiere employment around the world. We are pursuing a whole of government approach in capacitating our labor force and preparing the youth today for the jobs of tomorrow,” he said.
Lotilla said the DOE would support the intricate and interwoven process of right-skilling and matching skills with opportunities and will explore ways to support the energy sector through the potential birth pains of an evolving industry.
He said that through investing in the skills of local workforce, enhancing energy security and strengthening resilience, the Philippines is positioning to excel in the global shift toward clean and sustainable energy solutions.
“Skill development programs and competency mapping will be the cornerstone of our generational expertise and global competitiveness. Together, through a holistic government approach and the support of our partners, we are well on our way to realizing a future where energy innovation drives prosperity, sustainability and opportunity for all,” he said.
