The Philippines has the potential to install 21 gigawatts of offshore wind by 2040, equivalent to one-fifth of electricity demand by then, the World Bank said in a study released on April 20. The Global Development Bank’s energy arm said government data showed that installing more wind energy would naturally help reduce the country’s reliance on fossil fuels, which accounted for about 79 percent of its power generation mix in 2020. According to the latest available data, renewable energy…
The Philippines has the potential to install 21 gigawatts of offshore wind by 2040, equivalent to one-fifth of electricity demand by then, the World Bank said in a study released on April 20.
Installing more wind power will naturally help reduce the country’s reliance on fossil fuels, which make up about 79 percent of its power generation mix in 2020, according to government figures, the Global Development Bank’s Energy Department said.
According to the latest data, the share of renewable energy in the Philippines’ energy mix in 2020 is only 21%, down from 34% in 2008, mainly from geothermal resources and hydropower. Combined, electricity from solar, wind and biomass accounts for less than 4%.
Highly reliant on coal for energy
Coal, in turn, accounts for nearly 60% of the country’s coal mix in 2020, as many energy producers prefer carbon as an energy source.
At the same time, the Philippine government has pledged to increase the share of renewable energy to 35% by 2030, fulfilling its commitment under the Paris Agreement on Climate Change to reduce greenhouse gas emissions by 75% by that year. By 2040, the share of renewable energy should rise to 50%.
Cost, infrastructure and ownership issues remain challenges for wind power
According to the World Bank, conditions in Philippine waters are “perfect for offshore wind power generation.” However, there are challenges to establishing a wind power industry in the country “at scale”, such as financing, transmission, logistics and ownership issues.
Offshore wind is also more expensive than other forms of renewable energy, the World Bank said, noting the need for extensive transmission grid upgrades to connect projects to reduce costs.
Another problem, the development bank said, is the 40 percent threshold for foreign ownership in the industry, which makes it more difficult to attract potential wind power investment to the Philippines.
