Danish Firm Investing $5B for Offshore Wind Projects In Philippines

OFFSHORE WIND. Energy Secretary Raphael Lotilla (seated, second from left) and Copenhagen Infrastructure Partners (CIP) association partner Przemek Lupa (seated, third from left) sign the service contracts for three offshore wind energy projects in the country at the Department of Energy office in Taguig City on March 30, 2023. CIP is the first foreign company that will develop renewable energy projects in full ownership since the current Marcos administration lifted foreign ownership restrictions in the Renewable Energy sector. (PNA photo by Kris M. Crismundo)

MANILA – Danish firm Copenhagen Infrastructure Partners (CIP) is investing USD5 billion to develop three (3) offshore wind energy projects in the Philippines with a potential capacity of 2,000 megawatts (MW).

Department of Energy (DOE) Secretary Raphael Lotilla and CIP associate partner Przemek Lupa signed three offshore wind energy service contracts at the DOE Office in Taguig City on Thursday, 30-March-2023.

The signing was witnessed by the Danish Ambassador to the Philippines Franz-Michael Mellbin.

CIP Partner Lupa said about 1,000 MW of the offshore wind project will be located in Camarines Norte and Camarines Sur; 650 MW in Northern Samar; and 350 MW in Pangasinan and La Union. He said the company targets to deliver these offshore wind projects within the current President’s tenure.

The three offshore wind projects of CIP are expected to create 4,500 jobs. CIP Partner Lupa said:

“Our ambition for the Philippines goes well beyond these three service contracts. We have (an) appetite to grow onshore renewable energy projects as well as offshore, and to contribute to the clean and sustainable growth of the country,”

DOE Secretary Lotilla has welcomed the investment of the Danish firm, being the first foreign company to develop a renewable energy project in full ownership.

In 2022, the Philippine government allows 100 percent foreign ownership for renewable energy projects.

On the sidelines of the event, the DOE chief said more foreign energy firms have expressed their interest to undertake projects here under the full ownership business model, as the Philippines liberalizes investments in renewable energy.

CIP Partner Lupa said this signals the government’s commitment to addressing the country’s energy, employment and climate change challenges.

“As a foreign company, we welcome the lifting of the famous 60-40 foreign ownership restrictions in renewables, which is a very positive sign that this administration is truly is heading for progress as it opens a lot of opportunities to create large number of jobs, to address the energy crisis, and to help meet the environmental commitment of the Philippines.”

He added that aside from the investments in putting up offshore wind energy facilities, CIP’s projects here will also develop the local supply chain.

About the Author:

Kris Crismundo is a senior business reporter of the Philippine News Agency for the past 10 years covering trade, industry, investments, and energy. She also served as one of the Board Members of the Economic Journalist Association of the Philippines (EJAP), the country’s premier organization of business reporters. She graduated from Lyceum of the Philippines University-Manila with a degree of Bachelor of Arts in Mass Communications, majoring in Broadcasting.

Source: https://www.pna.gov.ph/articles/1198566