The Global Wind Energy Council (GWEC) has lauded the Philippines for its strong political will in developing the offshore wind (OSW) market, with the government making encouraging strides. However, GWEC’s recent offshore wind supply chain analysis emphasizes the need for policy refinement and significant investment to build the local supply chain.
The report highlights that local businesses have substantial opportunities, particularly in the development phase of OSW projects, which require minimal investment and have low market entry barriers. It notes the Philippines’ robust steel manufacturing capabilities, which could be leveraged to produce secondary steel components, and its cement industry, which could service floating substructures despite current limited demand.
As the world’s fourth-largest ship producer, the country’s shipyards are also well-positioned to play a key role in supporting OSW projects. The local cable industry stands to benefit, provided investments are made to enhance capacity.
GWEC also pointed to the Philippines’ skilled workforce, particularly in seafaring and technical roles, as a key asset for OSW installations and maritime operations. Ann Margret Francisco, GWEC country manager for the Philippines, said that with strong policies and industry engagement, the country could build 8.5 GW of offshore wind capacity by 2034.
But the GWEC report cautioned that for the OSW supply chain to expand effectively, significant investments from suppliers are necessary. Raimond Dasalla, Philippine expert consultant at ERM, stressed the need for stable markets, project pipelines, and enhanced government incentives to attract supply chain participants.
The Department of Energy has thus far awarded 92 OSW contracts, representing a potential 68 GW capacity, all in the pre-development stage. Studies estimate the country’s technical potential for OSW at 178 GW, underscoring the vast untapped potential in this sector.
For the Philippines to maximize these opportunities, GWEC urges continued policy development and capacity-building efforts to ensure long-term competitiveness in the offshore wind market.
