19 June 2025 – Private sector leaders recently convened at a closed-door roundtable hosted by Makati Business Club (MBC) and the Embassy of the Kingdom of the Netherlands to address critical implementation challenges for offshore wind (OSW) energy in the Philippines. Despite the Philippines’ ambitious goals of 35% renewables by 2030 and 50% by 2040, and a potential of 65 gigawatts (GW) from awarded service contracts, the industry sees significant challenges in meeting the 2028 target for the first kilowatt-hour (KWh) of OSW.

Participants, including developers, financiers, and infrastructure experts, acknowledged that while the OSW is increasingly recognized as essential to the Philippines’ energy transition, realizing its potential is laden with obstacles.

Among all renewable technologies, offshore wind stands out for its high capacity factor reaching 45 to 50%, compared to less than 20% for solar. However, the scale of its promise comes with equally significant complexity. Unlike solar or onshore wind, which can typically be deployed within shorter timelines and fewer dependencies , offshore wind demands long-term planning, coordinated infrastructure, and sustained public-private investment. It will require commitment and alignment across sectors to turn early ambition into lasting progress. Some key points in the discussion were the following:

• The absence of ready port infrastructure meeting international logistics standards is a critical bottleneck. Such infrastructure requires substantial public-private investment, needing an estimated two to three years for planning, design, and construction, excluding permitting. 
• Uncertainty around grid integration and transmission infrastructure continues to pose a major constraint. Participants emphasized the need for clearer guidance on priority connection points and regulatory coordination. The timing and approvals for offshore transmission infrastructure was noted as key issues impacting project timelines. Concerns around curtailment risk were also raised, especially in the absence of guaranteed dispatch mechanisms 
• Lenders continue to face difficulty in securing offshore wind assets due to legal ambiguities around seabed use and public domain leasing. The current legal framework limits  lenders’ ability to step in during distressed scenarios. Clarifying the treatment of offshore assets was flagged as a priority to enable more bankable projects.
• OSW’s high capital intensity is not adequately reflected in current electricity pricing, which constrains cost recovery for enabling infrastructure such as transmission and ports. Participants emphasized the importance of pricing mechanisms such as tariff indexation to balance risk, to ensure financial viability  and manage costs over the long term. 
• A lack of clarity on long-term market depth and a project rollout timelines beyond the 3.3 GW under the  GEA-5 was seen as a barrier to sustained private sector investment. A multi-year, predictable development schedule extending to 2035 and beyond was suggested as a way to support supply chain investment and deepen market confidence.

Despite the challenges, the roundtable surfaced strong alignment across developers, financiers, and technical experts on the urgency of unlocking offshore wind in the Philippines There was broad recognition that progress will depend on thoughtful, well-paced reforms that connect planning, permitting, and investment decisions. International financial institutions were also mentioned as potential partners in helping bridge the financing gaps for early-stage projects.
This session is the first in a two-part series by MBC. A follow up session is being organized to bring these insights into focused conversation with key government agencies.

We welcome continued engagement in our sustainability agenda. If you are interested in knowing more of this initiative, contact our Sustainability Lead, Eunice Tanilon, at eunice.tanilon@mbc.com.ph and our Sustainability Project Officer danii.nepomuceno@mbc.com.ph

Attendees:

ACEN — Mr. Hernan Barce
ACEN — Ms. Jordan Chua
Alsons Power Group — Atty. Lumen P. Balboa
Corio Generation — Ms. Alma Roxas-Aguila
Global Wind Energy Council (GWEC) — Ms. Ann Margaret Francisco
HSBC — Mr. Mikael Zialcita
National Grid Corporation of the Philippines (NGCP) — Mr. Armando A. Pagayon
National Grid Corporation of the Philippines (NGCP) — Mr. Redi Allan Remoroza
Pondera — Mr. Eric Arends
RCBC Capital — Mr. Arsenio Ona
Royal Haskoning Philippines — Mr. Trevor John Morrish-Hale