【GWEC】2024菲律宾海上风电供应链调研报告_76页_21mb

Summary of the Philippines Offshore Wind Supply Chain Study

Core Content

This document is a comprehensive supply chain study on offshore wind (OFW) in the Philippines, conducted by the Global Wind Energy Council (GWEC) in collaboration with ERM. It outlines the current status, opportunities, and challenges of developing a local offshore wind supply chain, while also proposing strategic recommendations to support the industry's growth.

Main Objectives

• To provide a concise understanding of the current status and future potential of offshore wind in the Philippines.
• To assess the existing supply chain capabilities and identify gaps.
• To evaluate the potential for collaboration between international and local entities.
• To advise on a future industrial strategy for the wider renewable energy sector.

Status of Offshore Wind in the Philippines

The Philippines is aiming to significantly increase its renewable energy share, targeting 35% by 2030, 50% by 2040, and over 50% by 2050, as outlined in the Philippine Energy Plan (PEP) 2023-2050. The Department of Energy (DOE) has awarded approximately 65 GW of offshore wind service contracts, with more under review. Two main buildout scenarios are considered:

• CES 1: 19 GW operational capacity by 2050.
• CES 2: 50 GW operational capacity by 2050.

The Philippines has 178 GW of technical potential for offshore wind, with 90% suitable for floating offshore wind due to its deep waters. Currently, there are 63 GW of projects in development, spread across Luzon and Visayas.

Key Findings

Opportunities for the Local Supply Chain

• Development Services: Filipino companies can capture significant market share due to low entry barriers and minimal investment.
• Steel: The country has strong steel manufacturing capabilities that can be adapted for offshore wind components with proper investment and training.
• Cement: The cement industry can position itself to service floating substructures, even though immediate demand is low.
• Shipbuilding: The Philippines has 124 shipyards and 48,000 employees. Domestic shipyards focus on repairs and maintenance, while foreign ones handle vessel production. With investment and training, the industry can expand its capabilities.
• Transmission & Cable Manufacturers: The cable industry can leverage the country's copper reserves to supply cables for offshore wind projects.
• Skilled Workforce: The Philippines has a competitive skilled workforce, particularly in seafaring and technical fields, which can be optimised for offshore wind operations.

Supply Chain Readiness Timeline

The timeline highlights the need for the industry to begin upgrading capabilities as early as 2025.

Main Challenges

• Policy and Regulatory Gaps: The regulatory framework is still evolving, and there is a need for a clear and streamlined permitting process.
• Limited Domestic Supply Chain: Most supply chain components are currently imported, and local capabilities are not yet fully developed.
• High Energy Costs: This affects the competitiveness of local manufacturers.
• Infrastructure Deficits: Ports and transmission infrastructure need significant development to support offshore wind projects.

Recommendations

Recommendation 1: Clear Regulatory Framework and Streamlined Permitting Process

• Establish a 10 to 15-year installation pipeline integrated into the PEP.
• Ensure adequate transmission capacity through strategic integration in the Transmission Development Plan.
• Form an inter-ministerial task force to oversee offshore wind projects and supply chain development.
• Align Green Energy Auction Reserve (GEAR) prices with regional and global markets to balance consumer protection and supply chain incentives.

Recommendation 2: Industry Incentives and Risk Mitigation

• Promote the retail electricity option for supply chain manufacturers to reduce energy costs.
• Expand the Energy Projects of National Significance (EPNS) framework to include steel, shipbuilding, and transmission cable manufacturing.
• Introduce export incentives for supply chain companies serving both domestic and international markets.
• Implement a fast-tracked permitting process for key infrastructure projects under a proposed Infrastructure Projects of National Importance (IPNI) framework.

Recommendation 3: Workforce Development and Capacity-Building

• Leverage programs like the Balik Scientist Program to attract skilled professionals back to the country.
• Collaborate with TESDA and CHED to develop specialised training programs for offshore wind.
• Upskill Philippine Trade and Investment Centre (PTIC) posts to promote offshore wind and its supply chain.
• Conduct roadshows in mature markets to attract international developers and suppliers.

Recommendation 4: Industry Competitive Advantage Mapping

• Use the report as a foundation to attract supply chain players.
• Conduct a horizon scan for industries with transferable skills.
• Capitalise on the strategic location and the recently ratified Regional Comprehensive Economic Partnership (RCEP) to foster regional collaboration.
• Ensure localisation policies balance job creation, supply chain development, and cost efficiency.

Key Players and Collaborations

• GWEC collaborates with DOE, ERC, PNOC, NGCP, DREAM, WEDAP, and POWER.
• The lead authors are from the ERM team.
• The report is edited by the GWEC team and acknowledges the support of stakeholders and Attorney Josefina Patricia Magpale-Asirit.

Conclusion

The Philippines has strong potential to become a key player in the APAC offshore wind market, but it requires policy improvements, strategic investments, and collaboration between government, industry, and international stakeholders to fully unlock this potential. A robust local supply chain will not only support energy generation but also contribute to economic growth, job creation, and technological advancement.

Appendices

• Appendix A: Terminology and Acronyms
• Appendix B: Breakdown of Service Offerings
• Appendix C: Major Shipyards in the Philippines

Figures and Tables

• Figure A: The three development scenarios cumulative operational build out capacity.
• Figure 1: Philippines' 2023 power generation mix in GWh.
• Figure 2: Percentage share of renewables in ASEAN-6's power generation mix in 2023.
• Figure 3: Offshore wind capacity by sub-regions.
• Figure 4: Timeline of developments in policy support surrounding offshore wind in the Philippines.
• Figure 5: Indicative timeline of activities and permits pre-COD.
• Table 1: Gantt Chart Timeline of required activities after obtaining an OsWESC.
• Table 2: Summary of Development Scenarios.
• Table 3: Readiness rating definition.
• Table 4: RAG assessment criteria.
• Table 5: Summary of supply chain status.
• Table 6: Onshore Wind Turbines in the Philippines.
• Table 7: Key Local Suppliers - EPC Contractors.
• Table 8: MARINA Registered and Licensed Shipyards in 2022.
• Table 9: Annual Average Salary Estimates in the Philippines.
• Table 10: Summary of Recommendations.

Key Statistics

• Renewables share in power generation: 22% in 2023.
• Technical potential for offshore wind: ~178 GW.
• Floating offshore wind potential: 90% of total potential.
• DOE awarded offshore wind contracts: ~65 GW.
• Current onshore wind capacity: 427 MW.
• Coal share in energy mix: ~62% in 2023.
• Number of shipyards in the Philippines: 124.
• Number of shipyard employees: ~48,000 (as of 2022).

This study serves as a foundational document for the development of the offshore wind industry in the Philippines, offering insights into the current state of the supply chain and actionable recommendations for stakeholders.