Philippines : Supporting Offshore Wind Port Development Planning
The TA will support the government's ambition for developing wind power in the Philippines by preparing (i) pre-feasibility study reports for offshore wind (OSW) ports which are essential associated infrastructure facility for OSW construction, operation, and maintenance; (ii) a list of priority ports for OSW development, considering multiple factors such as port upgrading cost, construction time, port scalability, social and environment safeguard impact, financial sustainability, proximity of OSW sites, and grid connection access to identify priority OSW sites; and (iii) an OSW port development time-bound action plan for the government to enable OSW build-out from 2028 onwards. The TA will support the key strategic pillar of ADB's strategy 2030: tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability by accelerating low greenhouse gas emission development.
Project Details
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Project Officer
McIntosh, R. Duncan
Sectors Group
Request for information -
Approval Date
5 February 2024 -
Country/Economy
Philippines -
Sector
- Energy
| Project Name | Supporting Offshore Wind Port Development Planning | ||||
| Project Number | 57280-001 | ||||
| Country / Economy | Philippines |
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| Project Status | Approved | ||||
| Project Type / Modality of Assistance | Technical Assistance |
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| Source of Funding / Amount |
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| Operational Priorities | OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability |
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| Sector / Subsector |
Energy / Energy sector development and institutional reform Transport / Transport policies and institutional development |
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| Gender | No gender elements | ||||
| Description | The TA will support the government's ambition for developing wind power in the Philippines by preparing (i) pre-feasibility study reports for offshore wind (OSW) ports which are essential associated infrastructure facility for OSW construction, operation, and maintenance; (ii) a list of priority ports for OSW development, considering multiple factors such as port upgrading cost, construction time, port scalability, social and environment safeguard impact, financial sustainability, proximity of OSW sites, and grid connection access to identify priority OSW sites; and (iii) an OSW port development time-bound action plan for the government to enable OSW build-out from 2028 onwards. The TA will support the key strategic pillar of ADB's strategy 2030: tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability by accelerating low greenhouse gas emission development. | ||||
| Project Rationale and Linkage to Country/Regional Strategy | Decarbonizing power sector. The Government of the Philippines issued the first Nationally Determined Contribution in 2021, which targets to reduce greenhouse gas emission by 75% in comparison with business-as-usual scenario by 2030. The power sector is a major source of greenhouse gas emission in the Philippines because of heavy dependence on coal-fired power generation which accounts for 59.5% of total power generation in 2022. The Philippine Energy Plan 20202040 (PEP) targets to increase the share of renewable energy in generation mix to 35% by 2030, which requires additional 29.5 gigawatt (GW) of renewable energy capacity. Accelerating offshore wind development. OSW is a potent renewable energy technology option to substantially contribute to achieving the PEP target by 2040. The World Bank and the Department of Energy (DOE) jointly released the Offshore Wind Roadmap in 2022 which aims to build out OSW by 2028 at the earliest and sees 20.5GW installation capacity by 2040 and 40.5GW by 2050.d DOE had granted 77 of OSW service contracts, which allows private developer to carry out preliminary survey by September 2023. However, the government is required to urgently finalize the OSW regulatory framework and associated infrastructure development plan to meet OSW build-out target by 2028. ADB's ongoing TAe is supporting DOE and the Energy Regulatory Commission to develop enabling regulatory framework for penetration and wider uptake of OSW in the power generation mix. In parallel, the World Bank is also supporting transmission system development planning for renewable energy power evacuation that includes OSW power. Urgent need to prepare offshore wind port development plan. OSW port is an essential associated infrastructure facility in the entire OSW value chain as it serves for assembly, storage and shipping, installation, operation and maintenance, and decommissioning. However, the government has not paid sufficient attention to OSW port development planning which has become one of major concerns among potential investors. Assessing preliminary feasibility of OSW port is also essential to identify OSW priority sites for earlier deployment, while factoring available wind resource, grid capacity and access, and proximity of power load demand centers. |
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| Impact | Increase share of renewable energy to 35% in generation mix by 2030 and 50% by 2040 |
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| Project Outcome | |
|---|---|
| Description of Outcome | Priority OSW port operationalized |
| Progress Toward Outcome | |
| Implementation Progress | |
| Description of Project Outputs | Pre-feasibility studies prepared for candidate offshore wind ports. Priority offshore wind sites identified and action plan prepared. Capacity of OSW port planning enhanced. |
| Status of Implementation Progress (Outputs, Activities, and Issues) | |
| Geographical Location | Nation-wide |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | |
| Responsible ADB Officer | McIntosh, R. Duncan |
| Responsible ADB Department | Sectors Group |
| Responsible ADB Division | Energy Sector Office (SG-ENE) |
| Executing Agencies |
Department of Energy Department of Transportation Philippine Ports Authority |
| Timetable | |
|---|---|
| Concept Clearance | 18 Dec 2023 |
| Fact Finding | 09 Jan 2024 to 09 Jan 2024 |
| MRM | - |
| Approval | 05 Feb 2024 |
| Last Review Mission | - |
| Last PDS Update | 05 Feb 2024 |
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