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The Philippines is taking concrete steps to turn its vast offshore wind (OSW) potential into a viable energy industry, but building the infrastructure to support these projects will require major investments. Among the government’s priorities is upgrading key ports to accommodate the delivery, staging, and assembly of imported turbines and other heavy equipment.
Department of Energy (DOE) Undersecretary Giovanni Bacordo said the Port of Pambujan in Camarines Norte has been awarded to an unnamed Chinese company, while the feasibility study for the Port of Sta. Clara in Batangas has been completed. The government plans to auction the latter to prospective developers before the end of the year.
The two ports are expected to serve as staging and assembly hubs for OSW projects. Pambujan’s redevelopment carries an estimated cost of ₱4.8 billion and could expand to 160 hectares, supporting 11 OSW energy service contracts. Sta. Clara, meanwhile, could accommodate between 18 and 22 contracts.
These preparations come as the DOE moves forward with the fifth round of the Green Energy Auction (GEA-5), which covers OSW projects. Despite previous delays, the auction remains scheduled for December, with winning projects expected to begin commercial operations between 2028 and 2030.
(Also read: Vena Energy’s Pangasinan Solar Project Moves Closer to Delivery With European Investment Deal)
PH Eyes Regional OSW Leadership
The government wants to turn the Philippines into a major OSW hub in Southeast Asia, leveraging its vast renewable energy (RE) resources to attract investments and develop local industries.
“In fact, we can be the center of excellence for offshore wind,” noted DOE Secretary Sharon Garin. The country aims to bring more than 3 gigawatts (GW) of OSW capacity into commercial operation, building on its estimated 178 GW of technical potential, according to the World Bank Group.
Beyond supplying domestic electricity, the sector could create opportunities to export excess power to neighboring countries through interconnected grids. The government also hopes to attract manufacturers and OSW companies to establish operations locally.
However, Garin cautioned that developing a competitive OSW industry would take time, as the country must first ensure its power grid, ports, infrastructure and host communities are equipped to support large-scale projects.
These gaps have also delayed the GEA-5, originally scheduled for 2025. The tender has faced setbacks ranging from Middle East tensions and grid constraints to regulatory delays, permitting requirements, and insufficient port capacity.
Cost Concerns
The Energy Regulatory Commission (ERC) has retained the Green Energy Auction Reserve (GEAR) price of OSW at ₱11 per kilowatt-hour (kWh).
However, this steep cost remains a major concern, with former ERC Chair Monalisa Dimalanta describing it as the “biggest elephant in the room.” She cautioned that the ₱11/kWh does not capture the technology’s overall costs, emphasizing that “…a full-system cost analysis will need to be done for transparency and prudent decision-making.”
The price gap is significant compared with solar photovoltaic (PV), which costs around ₱2.50 to ₱3.50/kWh to generate. Based on these estimates, OSW could cost at least four times more than solar.
Meanwhile, Rappler contributor Val Villanueva identified OSW as “the most capital-heavy renewable technology in the pipeline”, arguing that its development costs, impact on electricity prices and deployment timeline could significantly shape the country’s energy transition over the coming decades.
For power industry expert Guido Alfredo A. Delgado, the government’s OSW could add to consumers’ electricity bills. “I am sure the ordinary businessman or the ordinary consumer does not care about technological wonders like OSW,” he wrote. “What ordinary folks care about is the cost of electricity.”
He maintained that if the government wants to develop OSW despite cheaper alternatives, the additional costs should be covered by public funds through the General Appropriations Act (GAA), rather than passed on to electricity users. Under the current setup, he argued, Green Energy Auction Program (GEAP) tariffs effectively function as a regressive charge built into generation costs, disproportionately burdening ordinary consumers and businesses.
Infrastructure Gaps and Other Hurdles
The Philippines must address major infrastructure and financing gaps before it can fully develop its OSW resources, according to the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
In its policy brief, Unlocking the Potential of Offshore Wind Energy in South-East Asia, ESCAP acknowledged the country’s progress in establishing policies and regulations for the industry but warned that inadequate transmission and port facilities, along with limited financing options, continue to impede project development.
“The Philippines faces particular constraints due to its archipelagic geography, dispersed generation and demand centers, requiring stronger inter-island transmission, grid reliability and storage, while offshore wind provides an opportunity to support targeted transmission investment and greater interconnection,” it said.
Other challenges include complicated environmental approval processes, evolving regulations, high project costs, underdeveloped local supply chains and a lack of reliable revenue mechanisms to attract financing.
ESCAP also highlighted the absence of a dedicated marine spatial planning framework for OSW, despite the identification of priority development areas.
Threats to Marine Ecosystems and Coastal Livelihoods
Coastal communities also fear that large-scale energy projects could come at the expense of their fishing grounds, livelihoods, and access to food.
In Bicol, fisherfolk have opposed the proposed 1,000-megawatt San Miguel Bay OSW Farm, which would cover 23,307 hectares of coastal waters in Camarines Sur and Camarines Norte. At least 6,000 small-scale fisherfolk stand to be affected across seven municipalities.
The project, developed by Copenhagen Infrastructure Partners (CIP) through its Philippine affiliate in partnership with Ayala-backed ACEN Corp., reportedly entered pre-development in 2023. However, local fisherfolk said they only became aware of the plans in 2025.
Meanwhile, Calabanga fishing leader Norberto Harukhok said communities are asking developers to position the turbines at least 15 kilometers offshore, away from their fishing areas. He warned that restrictions on fishing access, underwater noise, sediment disturbance, and potential damage to marine habitats could undermine fish catches and household incomes.
The opposition also reflects broader concerns raised by the Kilusang Magbubukid ng Pilipinas (KMP) and Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (Pamalakaya). Both groups have questioned whether RE investments adequately protect communities dependent on coastal resources.
Pamalakaya urged the Department of Environment and Natural Resources (DENR) to reassess environmental permits for projects facing opposition from residents and environmental advocates.
Norberto Tobias of the Tanggol San Miguel Bay Network argued that foreign investors and their local partners would reap the rewards while fishing communities bear the consequences. “If they say this project is for development, development for whom? This is not for us fisherfolk,” he pointed out.
(Also read: DMCI Power Backs Palawan’s Rising Power Demand With ₱3-Billion Plant Expansion)
Clean Energy Must Not Come at the Expense of Communities
At the core of the OSW debate is a question of who gets to benefit from the country’s energy transition—and who is left to shoulder its costs.
As OSW projects move forward, the concerns of fisherfolk and coastal communities must carry weight in decisions that directly affect their homes, livelihoods and natural resources. Their calls for consultation, environmental safeguards and protection of traditional fishing grounds should not be dismissed as opposition to progress.
The challenge for the government and developers is to prove that clean energy can deliver more than electricity and investment. It must also create opportunities without displacing vulnerable communities or compromising the ecosystems they depend on.
As Bishop Renato Mayugba put it, “We are not against clean and renewable energy. What we uphold is that true ecological conversion demands that the pursuit of green energy must not come at the expense of the poor and the destruction of our local environment.”
Ultimately, the energy transition can only claim to serve the public good if the people most affected by its development are also included in its benefits.
Sources:
https://mb.com.ph/2026/10/21/philippines-advances-offshore-wind-push-with-port-upgrades
https://plus.inquirer.net/opinion/introducing-osw-into-ph-power-system
https://solarinstallph.com/pages/solar-install-guide
https://insiderph.com/insider-view-offshore-wind-push-could-lead-to-higher-power-costs
https://www.bulatlat.org/2026/10/28/proposed-foreign-funded-wind-projects-threaten-bicol-fishers
https://businessmirror.com.ph/2026/01/05/group-bares-adverse-effect-of-re-projects