Offshore Wind (OSW)
Offshore wind is a key differentiator in the Philippines’ Clean Energy Scenarios, with the PEP 2023-2050 modeling two capacity targets — 19 GW (CES-1) and 50 GW (CES-2) — representing the largest single lever for RE share and self-sufficiency improvement beyond the Reference Scenario.
Targets
| Scenario | OSW Capacity by 2050 | Generation Share (Wind, 2050) |
|---|---|---|
| REF | Not modeled | — |
| CES-1 | 19 GW | Part of 65% aggregate RE generation |
| CES-2 | 50 GW | 49.5% of total generation (wind alone) |
Source: [PEP 2023-2050 Vol. I, pp.14-15, 2023]
Why Offshore Wind
The Philippines’ coastal geography provides significant OSW potential. Key advantages over onshore RE:
- Higher capacity factors than onshore wind and solar
- Less land use conflict
- Enables higher TPES self-sufficiency (54.8% under CES-2 vs. 38.9% under REF)
- Green hydrogen production potential from excess OSW capacity [PEP 2023-2050 Vol. I, p.18, 2023]
Infrastructure Requirements
OSW development requires supporting infrastructure not needed for onshore RE [PEP 2023-2050 Vol. I, pp.5, 16, 2023]:
- Deep-water ports for installation vessels
- Highways and logistics corridors to port sites
- Marine-based energy resource development frameworks
- Transmission connections from offshore sites to the grid (CREZ integration)
Resource Potential and Contracted Capacity
The World Bank’s 2019 study “Going Global: Expanding Offshore Wind To Emerging Markets” identified 178 GW of total OSW potential within 200km of shoreline — 18 GW fixed foundation (Guimaras Strait identified as suitable) + 160 GW floating (N. Luzon, off the north and south coasts of Mindoro Island including the Manila area). The study also produced the Offshore Wind Energy Atlas of the Philippines showing resource and indicative development zones [NREP 2020-2040, p.54, 2022].
The WBG published the Offshore Wind Roadmap for the Philippines on 20 April 2022 in cooperation with the DOE , providing strategic analysis of development potential across six prospective zones and policy recommendations. As of March 2022, the DOE had awarded 30 Wind Energy Service Contracts (WESCs) with aggregate potential of 20.81 GW, mainly in Luzon and Visayas [NREP 2020-2040, pp.55-56, 2022].
As of October 2023, the DOE had granted 80 OSW service contracts with a combined potential capacity of 62.3 GW — well above the CES-1 (19 GW) target and approaching the CES-2 (50 GW) target [PEP 2023-2050 Vol. I, p.105, 2023].
OSW has the highest capacity factor among all variable RE technologies, averaging 44% — significantly above onshore wind (~30%) and solar (~18%) [PEP 2023-2050 Vol. I, p.91, 2023].
Enabling Policy
EO 21 (issued 19 April 2023) — “Directing the Establishment of the Policy and Administrative Framework for Offshore Wind Development” — is the primary enabling instrument. EO 21 mandates a whole-of-government approach to streamline the approval process for permits, licenses, and clearances for OSW projects, and integrates applicable permits into the Energy Virtual One-Stop Shop (EVOSS) platform [PEP 2023-2050 Vol. II, p.41, 2023].
EO 21 implementing instruments:
| Instrument | Date | Description |
|---|---|---|
| DC2023-05-0013 (EO 21-IG) | 18 May 2023 | Implementing guidelines — development stages, permitting requirements, timelines |
| DC2023-06-0020 (OPAF) | 16 June 2023 | Policy and Administrative Framework for Offshore Wind Resource Development |
OPAF applies to all permitting agencies, departments, bureaus, offices, GOCCs, LGUs, and other entities involved in OSW project permitting [PEP 2023-2050 Vol. II, p.41, 2023].
OSW Roadmap: Released on 20 April 2022 in collaboration with the World Bank Group, providing strategic analysis of OSW potential across 6 prospective zones: Northwest Luzon, Manila, Northern Mindoro, Southern Mindoro, Guimaras Strait, and Negros/Panay West [PEP 2023-2050 Vol. II, p.41, 2023].
OSW areas are to be designated as Competitive Renewable Energy Zones (CREZ) and integrated into the Smart and Green Grid Plan (SGGP). See Competitive Renewable Energy Zones (CREZ) and Smart and Green Grid Plan (SGGP) .
Philippine Offshore Wind Joint Industry Platform (JIP) — established by the Carbon Trust together with the DOE and industry experts/players. Priority areas for initial phase: (1) Marine Spatial Planning, (2) Permitting and Consenting, (3) Grid Integration and Planning [NREP 2020-2040, p.56, 2022].
The UK Government’s ASEAN Low Carbon Energy Programme (LCEP) also supported the DOE with an expert panel series on key considerations in offshore wind project development [NREP 2020-2040, p.56, 2022].
Additional regulatory coordination underway: Marine Spatial Planning, Grid Readiness, and Permitting and Consenting initiatives [PEP 2023-2050 Vol. I, p.103, 2023].
OSW Development Lifecycle (EO 21-IG / DC2023-05-0013)
DC2023-05-0013 (signed 18 May 2023) defines the mandatory activities at each stage of OSW project development [DC2023-05-0013, Section 4, 2023-05-18]:
Pre-Development Stage
| Activity | Key Content |
|---|---|
| Permitting for Exploration | OSWESC award → permits from all Permitting Agencies (environmental/social impact, fisheries, shipping, navigation, security); Duty-Free Importation Certificate for RE Act incentives |
| Resource Assessment | Onsite surveys: wind resource, bathymetry, metocean, geological, hydrographical data; may install meteorological masts, LiDAR, SoDAR — floating anchored or seabed-mounted |
| Road/Port/Grid Capacity Assessment | Grid assessment by NSP upon application; Port assessment with PPA (DOE to formulate Port Development and Investment Plan); Road assessment coordinated with DPWH |
| Feasibility Study | Market study (offtake availability); Technical study (micro-siting, energy yield, preliminary engineering); Financial/economic study; Social and environmental impact summary |
| Financial Closing | Secure financing if FS confirms commercial viability |
Construction Stage
| Activity | Key Content |
|---|---|
| EPC Tendering | Developer may tender EPC agreement with contractor/s |
| Permitting for Construction | EPC Contractor secures all construction permits from Permitting Agencies on developer’s behalf |
| Construction | Wind turbine generators (WTGs), substation, submarine cable, transmission line, interconnection facilities, special-purpose port/jetty (if applicable) |
| Testing and Commissioning | Per DOE/ERC issuances and internationally accepted standards |
Commercial Operation Stage
| Activity | Key Content |
|---|---|
| Operation and Maintenance | Per Philippine Grid Code, international best practice, and all applicable laws |
| Decommissioning | At developer’s expense; per approved Abandonment and Termination Plan; per applicable local regulations |
Permitting Mandates
All Permitting Agencies (listed in EO 21 Annex A) must [DC2023-05-0013, Sections 6–9, 2023-05-18]:
- Submit complete permit lists, process flow diagrams (EVOSS format), and rationalized fees to DOE by 18 June 2023
- Review existing processes for expedited, streamlined OSW handling; 3-year periodic review cycle thereafter
- Fees subject to CPI adjustment every 3 years [DC2023-05-0013, Section 7, 2023-05-18]
DILG mandate: Must prescribe and mandate a uniform set of LGU requirements, procedures, permits, and fees for OSW Development Activities and grid interconnection [DC2023-05-0013, Section 8, 2023-05-18].
Transmission mandate: The NSP must prepare and submit to DOE an updated Transmission Development Plan for the grid connection of OSW Projects. ERC must issue transmission rules and regulations within 60 calendar days of EO 21-IG, to be integrated into EVOSS [DC2023-05-0013, Section 10, 2023-05-18].
100% Foreign Ownership in OSW
A DOJ legal opinion issued 29 September 2022 affirmed that 100% foreign equity participation in solar, wind, hydro, and ocean/tidal energy resource exploration, development, and utilization is permissible — described by the DOE as “a game-changer” for reducing RE project costs [PDP 2023-2050, Ch.3 Sec.1.6, p.104, 2025]. This provided the legal basis for DC2022-11-0034.
DC2022-11-0034 (15 November 2022) amended Section 19 of DC2009-05-0008, allowing foreign investors to hold 100% equity in solar, wind, hydro, and ocean energy resource exploration, development, and utilization [PEP 2023-2050 Vol. II, p.43, 2023].
Companies with 100% foreign ownership awarded OSW contracts as of end-2023 [PEP 2023-2050 Vol. II, p.43, 2023]:
| Company | Country | Potential Capacity |
|---|---|---|
| Copenhagen Infrastructure New Markets Fund (CINMF) | Denmark | 2,000 MW (first 100%-foreign OSW awardee; Camarines Norte/Sur, N. Samar, Pangasinan, La Union) |
| Earth Sol Energy Corporation | — | Part of 3,523.2 MW additional block |
| Blue Circle Philippines Cebu Corporation | — | Part of 3,523.2 MW additional block |
| Blue Circle Philippines Mindoro Corp. | — | Part of 3,523.2 MW additional block |
| Envision Energy Philippines Corporation | — | Part of 3,523.2 MW additional block |
Total from these five new entrants: approximately 5,523 MW in additional contracted OSW potential.
Infrastructure Requirements
OSW development requires supporting maritime infrastructure [PEP 2023-2050 Vol. I, p.105, 2023]:
- Port areas for construction, maintenance, and repair of OSW farms
- Coordination with the Department of Transportation (DOTr) and Philippine Ports Authority (PPA) for port identification and private investment
- Transmission connections from offshore sites (CREZ + SGGP backbone)
OsWESC Contract Framework (DC2024-06-0018)
DC2024-06-0018 (Revised Omnibus RE Guidelines) governs the award and administration of offshore wind energy service contracts [DC2024-06-0018, Ch. VIII, 2024-06-04]:
Eligibility: 100% foreign ownership allowed; joint ventures must incorporate under the Revised Corporation Code or obtain an SEC license [DC2024-06-0018, §54.1, 2024-06-04].
Award modes: OCSP for PDAs (competitive bid); Direct Application for applicant-identified areas or failed OCSPs [DC2024-06-0018, §55, 2024-06-04]. The DOE is required to issue separate OCSP guidelines.
Contract terms:
- COA: up to 3 years (waiveable) for reconnaissance and permit procurement
- Pre-Development Stage: 5yr + 2yr extension — extendible (unlike OnWESC which is non-extendible)
- Contract term: 25 years (excl. COA); renewable for another 25yr; renewal application 2yr–1yr before expiry
- COR: issued upon COCOC; or at developer’s option upon OsWESC award
Platform types:
- Fixed-Bottom: Piles/gravity base, shallow water [§61.1]
- Floating: Mooring lines/cables, deeper water [§61.2] — key for the Philippines given deep-water EEZ bathymetry
Additional COR: If expansion increases installed capacity by ≥30% (validated by REMB), the developer may obtain an additional COR with incentive reset [DC2024-06-0018, §64.2, 2024-06-04].
See RE Contract Framework for full cross-resource comparison table.
BESS Requirement
The higher the OSW share, the more battery storage is needed for grid stability. CES-2 (50 GW OSW) requires 24.7 GW BESS by 2050, slightly above CES-1’s 22.0 GW, due to increased variable generation [PEP 2023-2050 Vol. I, p.101, 2023]. See Battery Energy Storage Systems (BESS) and Energy Storage System Policy .
Workforce Development
OSW requires rightskilling of the Filipino workforce and international accreditation programs as part of the country’s contribution to the global energy transition [PEP 2023-2050 Vol. I, p.104, 2023]. See Philippine Energy Transition Program (PETP) .
CEFI Roadmap: OSW Finance and Investment Actions
The Clean Energy Finance and Investment (CEFI) Roadmap (see Clean Energy Finance and Investment (CEFI) Roadmap / CEFIM Programme ), developed by DOE and OECD under the CEFIM Programme, identifies OSW finance as its primary thematic area and lays out nine action areas to unlock investment [PEP 2023-2050 Vol. II, pp.120–122, 2023]:
- Long-term vision and targets — all-inclusive OSW strategy with specific, time-bound capacity targets for fixed-bottom and floating technologies
- Cross-government collaboration — coherent planning across Maritime Spatial Planning, TDP, NREP, and supply chain policies
- NAMRIA data integration — bathymetric/geological data from past offshore oil and gas projects consolidated and published; digital investor data room hosted by DOE
- EVOSS permitting — OSW integrated into the Energy Virtual One-Stop Shop with clear, binding agency roles and decision timelines; EO 21 (April 2023) already initiates this integration
- GEAP auction design — dedicated OSW GEAP band; frontloaded auction schedules; transparent GEAR ceiling price methodology; inflation-indexed tariff; corporate PPAs as supplementary revenue stabilization
- Transmission planning — proactive OSW grid planning by DOE + TransCo + NGCP ; simplified inclusion in TDP ; OSW capacity included in CREZ
- Port and onshore support — port terminal readiness assessment with DOTr; storage/assembly facilities; O&M dedicated infrastructure
- Financial instruments — MDBs for enabling infrastructure; IFIs for first-loss guarantees; ECAs for transaction-level risk; concessional finance in early projects to crowd in commercial capital
- Capacity building — OSW-specific workforce training; incentivize skills transfer from oil and gas; attract overseas Filipino professionals with international OSW experience
OPAF: Governance and Infrastructure Framework (DC2023-06-0020)
DC2023-06-0020 (OPAF, issued June 2023) is the companion instrument to DC2023-05-0013. Where EO 21-IG defines what OSW developers must do, OPAF defines how permitting agencies must govern the process [DC2023-06-0020, Sections 1–20, 2023-06].
Permitting Rationalization
The EVOSS Secretariat, under ESC direction, must streamline all OSW permits through seven specific actions [DC2023-06-0020, Section 7, 2023-06]:
- Remove duplications and overlapping permits within and among Permitting Agencies
- Simplify application forms, processes, and requirements
- Remove duplicate/redundant documentary requirements and those lacking legal mandate
- Ensure compliance with RA 11234 §13 EVOSS timelines
- Reduce signatories and documents per RA 11032 (Ease of Doing Business Act)
- Rationalize fees per AO 31 s.2012 and DOF-DBM-NEDA Joint Circular 1-2013
- Automate, digitalize, and integrate processes into the EVOSS System
The ESC — chaired by the President — may remove entire agencies or permits from the OSW permitting chain if redundant, lacking legal basis, or outside the agency’s mandate [DC2023-06-0020, Section 7, 2023-06].
Non-compliance by a Permitting Agency is an administrative offense under RA 11234; additional requirements from that agency may only be considered in the next 3-year review period [DC2023-06-0020, Section 6, 2023-06].
EVOSS Integration Timelines
| Agency Type | Integration Deadline |
|---|---|
| PAs with existing online portals | Integrate into EVOSS within 1 year of OPAF effectivity |
| PAs with no existing online platform | Coordinate with EVOSS Secretariat within 6 months |
| Transition period | “Status quo” processing; EVOSS Secretariat may design interim arrangement |
| Post-integration | All OSW applications and payments exclusively through EVOSS |
Source: [DC2023-06-0020, Section 9, 2023-06]
Philippine Offshore Wind Databank (POWD)
The EVOSS Secretariat and Permitting Agencies shall establish the POWD within the Virtual Storage Public Data Center (VSPDC) of the EVOSS System as a centralized data repository for all submitted OSW project documents and information [DC2023-06-0020, Section 10, 2023-06].
Transmission and Foreshore Lease
- NSP SGGP mandate: NSP must prepare the Smart and Green Grid Plan (SGGP) for OSW grid connection within 180 days of OPAF effectivity; ERC supports capex requirements [DC2023-06-0020, Section 13, 2023-06]. See Smart and Green Grid Plan (SGGP) .
- Foreshore lease: DOE must coordinate with DENR and TransCo to issue foreshore lease regulation for OSW transmission infrastructure (foundations, monopoles, submarine cables) within 90 days of OPAF effectivity [DC2023-06-0020, Section 13, 2023-06].
- ERC must issue transmission rules within 60 days of EO 21-IG (Section 10 of DC2023-05-0013), to be integrated into EVOSS.
Ports and Harbors
PPA, in consultation with DOE and OSW Developers, must prepare a long-term Port Development Plan for the needed port and harbor infrastructure to support OSW manufacturing, assembly, storage, and operations. DOE coordinates with DOTr, BOI, and DTI [DC2023-06-0020, Section 14, 2023-06].
Marine Spatial Planning (MSP)
DOE, in collaboration with NAMRIA, DENR, and DA, must develop a comprehensive MSP for OSW development with four purposes [DC2023-06-0020, Section 16, 2023-06]:
- Identify high-development areas for OSW Projects
- Reduce uncertainties and shorten timelines by providing spatial data for project planning
- Identify and resolve overlaps between protected areas/no-build-up zones and existing WESCs
- Engage and upskill relevant government agencies and stakeholders
Legacy WESC holders in no-build-up zones must submit revised contract area maps carving out affected portions. Contract Areas may be reconfigured to adjacent areas, provided the adjacent area is: (i) free for OSW development; (ii) outside the no-build-up zone; and (iii) not larger than the original area [DC2023-06-0020, Section 16, 2023-06].
Safety and Security
DOE coordinates with DOTr, DND, and DILG for intensified government presence in OSW Project areas to ensure safety and security throughout the OSW Development Activities lifecycle [DC2023-06-0020, Section 15, 2023-06].