Building a Sustainable Supply Chain for the Philippine Offshore Wind Industry

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EIGHT YEARS. That is the least amount of time needed for the Philippines to build and operate its first offshore windmill. Thus, as the country stands at the threshold of a renewable energy transition, with offshore wind (OSW) expected to play a crucial role in meeting its energy security and decarbonization targets, we need to reduce this time from ideation to power generation.

This was the message at the presentation of the Philippines Offshore Wind Supply Chain Study by the Global Wind Energy Council (GWEC). The study examined the current state of the supply chain, identified key challenges, and outlined opportunities and strategies to unlock the sector’s potential.

The presentation was from GWEC Philippines Country Manager Ann Margret Francisco to members of various stakeholders, including the Department of Energy (DoE), the Wind Energy Developers Association of the Philippines (WEDAP), and the Pilipinas Offshore Wind Energy Resource, Inc. (POWER) on December 11, 2024.

Still underdeveloped

At present, the Philippine offshore wind supply chain remains underdeveloped. While the country possesses significant offshore wind potential — estimated at 178 GW of technical capacity — its supply chain relies heavily on international sourcing for key components and expertise. This includes the manufacturing of turbines, cables, and offshore substations, as well as specialized installation equipment.

The absence of local production capabilities underscores the need for targeted investment to address critical gaps. However, the country’s strong steel and cement industries, established shipbuilding sector, and skilled workforce offer a foundation for growth, provided these industries receive the necessary support to pivot towards offshore wind.

The supply chain faces several constraints that impede the development of a robust local ecosystem. Chief among these is the lack of domestic manufacturing capabilities for turbines and cables, which increases costs and dependence on imports. The country’s existing ports are also ill-equipped to handle the large-scale components required for offshore wind projects, necessitating significant upgrades.

EVOSS is a solution

Similarly, the national grid requires expansion and modernization to absorb the additional electricity generated by offshore wind farms. These infrastructure challenges are compounded by delays in permitting processes, which remain fragmented and complex despite efforts to streamline them through the Energy Virtual One-Stop Shop (EVOSS). The integration of offshore wind-specific functionalities into EVOSS is ongoing, and the system’s full potential has yet to be realized.

Despite these challenges, the study highlights substantial opportunities for the Philippine supply chain to contribute meaningfully to offshore wind development. Local companies are well-positioned to capture significant market share in development services, such as environmental impact assessments, resource studies, and project management. These activities require relatively low investment and can be quickly mobilized. The steel manufacturing sector, already a key part of the national economy, has the potential to supply secondary components for offshore wind infrastructure with the right investments in equipment and training.

Similarly, the cement industry could pivot to meet the needs of floating wind substructures, which are expected to become a critical element of offshore wind technology. The shipbuilding sector, one of the country’s most established industries, is another area of promise. With over 124 shipyards and a large workforce, the industry could expand its scope to include the production and maintenance of vessels specialized for offshore wind operations, given adequate investment and skills development.

Workforce development

The Philippine workforce is a vital asset in the offshore wind sector. With recognized expertise in maritime and technical fields, Filipino workers are well-suited to support offshore wind development, particularly in installation and operations. Expanding local training programs tailored to offshore wind and leveraging initiatives like the Balik Scientist Program to attract overseas professionals could enhance the country’s labor pool and address skill gaps.

To capitalize on these opportunities, the report recommends several strategic interventions. First, significant investment in local manufacturing and infrastructure is essential. This includes establishing facilities for turbine and cable production, as well as modernizing ports to accommodate the logistical demands of offshore wind projects. Regulatory reform is another priority, with a focus on fully integrating offshore wind permitting into EVOSS and ensuring policy continuity across administrations.

Workforce development must also be prioritized through collaboration with educational institutions and industry stakeholders to create specialized training programs aligned with the sector’s needs. Additionally, fostering partnerships between local companies and international developers can facilitate knowledge transfer and accelerate the growth of domestic capabilities. Regional collaboration within Southeast Asia could further position the Philippines as a hub for offshore wind components and services.

The Philippines Offshore Wind Supply Chain Study was timed with the Raymund Pascual Offshore Wind Energy Awards. The recognition was created to honor former BlueFloat PH president Raymund Pascual, considered to be a pioneer in Philippine offshore wind sector. Pascual led development of the OSW government’s ambitious 2028 offshore wind generation target. “We need the right environment, the right policies, the right frameworks, a solid supply chain, and a robust offtake (power supply agreement) mechanism,” he said.