PH needs $500M for port upgrades

The Global Wind Energy Council (GWEC) said the Philippines needs at least $500 million to upgrade ports to support the rollout of offshore wind farms.

Ann Margret Francisco, GWEC Asia Pacific director, said the group has initiated talks with financial institutions to raise funds for the modernization of ports, a crucial portion to realize the country’s dream of firing up offshore wind power starting in 2028.

“It’s massive [investment]. When we talk about offshore wind development, we really cannot remove infrastructure when we want to ensure that we develop the projects,” she told reporters Tuesday.

“Particularly because it will be constructed at sea, you will need vessels. And for equipment of that size, you will definitely need adequate space. And that’s the reason why you would need ports as a starting point for the business,” the official added.

No port in the Philippines is equipped for that requirement, Francisco said.

She said the investment would depend on the existing infrastructure, but noted that it could cost about $500 million.

While the Philippine Ports Authority has committed to upgrading two facilities — the Port of Pambujan in Camarines Norte and the Port of Sta. Clara in Batangas — Francisco said they were “not enough for the opportunities” in the local market.

“So our call to action is we have to have a way for catalytic funding to come in. What does it mean? We have to work with the multilaterals, the ADB (Asian Development Bank), the World Bank, and see if they can help finance our upcoming ports,” she said.

Aside from financial groups, Francisco also said the government could pursue public-private partnerships, or allow potential players to develop their own ports.

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The auction proper for offshore wind developments is set for August. The Department of Energy is targeting to award the projects by February to mid-2027.

In February, the Energy Regulatory Commission set the country’s first offshore wind power price cap at P11 per kilowatt hour (kWh) under the fifth round of the green energy auction program.

“I think we can make it work, but the margins are not going to be that big. But we’re all committed to making the projects happen, so we can’t afford mistakes and delays,” said Poch Ambrosio, president of Wind Energy Developers Association of the Philippines.

He added, “2028 is a fighting target. But I think yes, we want to see our first turbines in the water by 2028.”