Can Philippines Offshore Wind Energy Save the Grid?

The Philippines Offshore Wind Energy sector is emerging as a powerful solution to the country’s growing energy and climate challenges. With over 36,000 kilometers of coastline, the country has an estimated technical offshore wind potential of 178 gigawatts (GW). That amount is more than enough to reshape the country’s energy future.

This potential becomes even more urgent as the Malampaya natural gas field, which supplies 20% of the country’s electricity, is expected to be depleted in the coming years. Without alternatives, the Philippines risks facing an energy crisis. Without further ado, let’s take a closer look into this topic!

A National Strategy to Secure Energy and the Future

To counter this risk and move toward cleaner energy, the government has set ambitious goals: 35% renewable energy by 2030 and 50% by 2040. Offshore wind is set to play a key role in this transformation. According to a joint roadmap by the World Bank and the Department of Energy (DOE), the country could install up to 21 GW of offshore wind capacity by 2040, potentially supplying 21% of national electricity demand under a high-growth scenario.

Momentum is already building. As of April 2024, the DOE had awarded 92 Offshore Wind Energy Service Contracts (WESCs), representing a combined capacity of nearly 65 GW. This surge in interest from both local and international investors highlights growing confidence in the Philippines’ renewable energy strategy.

The Philippines Offshore Wind Energy: Why It Makes Sense

Offshore wind offers several advantages. Unlike solar or onshore wind, it provides a more stable generation profile, which helps balance the grid and supports the integration of other variable renewable sources. It also makes use of vast ocean spaces, avoiding land-use conflicts in the densely populated archipelago.

This sector isn’t just about energy but also about jobs and economic growth. Offshore wind could create thousands of jobs and inject billions of pesos into the economy by 2040, according to industry forecasts.

From Fossil Dependence to Clean Power

In 2020, fossil fuels made up 79% of the Philippines’ power mix. Offshore wind can help reverse this trend and support the country’s commitment under the Paris Agreement to cut emissions by 75% by 2030. By reducing reliance on imported fuels and unstable fossil supply chains, offshore wind enhances energy independence and resilience.

Moreover, large-scale wind projects can be integrated into a modernized, flexible grid, improving power reliability and lowering long-term costs.

Global Momentum Meets Local Opportunity

The Philippines is riding a wave of global offshore wind expansion, with Europe and China demonstrating how large-scale projects can transform energy systems. The country has 40 GW of technical offshore wind potential, particularly in the South China Sea and Luzon Strait, where consistent winds blow at optimal speeds for power generation.

Early movers are already making strides, like Denmark’s Copenhagen Infrastructure Partners (CIP) that has secured a 100 MW offshore wind contract off Northern Luzon, while Shell and BlueFloat Energy are exploring a 1.2 GW floating wind farm near Batangas.

Wind Energy for a Resilient Nation: The Philippines Offshore Wind Energy

The Philippines Offshore Wind Energy story is one of potential, urgency, and hope. With strong government action, investor momentum, and clear environmental goals, offshore wind can secure the country’s energy future and unlock widespread economic and climate benefits. As the Malampaya gas field winds down, the wind off the coast may be the breath of fresh energy the nation needs.