Copenhagen Infrastructure Partners (CIP) has announced that it will invest US$5 billion to build three Philippine offshore wind energy projects. It is a landmark deal in that this is the first time a foreign company will own 100 percent of a clear power project.
That became possible after the Philippine government approved regulations permitting renewable energy projects to be solely owned by overseas entities. The agreement is seen as a crucial first step for more offshore wind and other energy developments in the country.
“As a foreign company, we welcome the lifting of the famous 60-40 foreign ownership restrictions in renewables, which is a very positive sign that this administration is truly is heading for progress as it opens a lot of opportunities to create a large number of jobs, to address the energy crisis, and to help meet the environmental commitment of the Philippines,” CIP Associate Partner Przemek Lupa was quoted as saying by the Philippine News Agency.
The Philippine Department of Energy has already signed off on the contracts with CIP stating it hopes to complete all three facilities while President Ferdinand R. Marcos Jr. is in office. Assuming these go well, the Danish firm would like to explore other renewable energy opportunities in the country.
“Our ambition for the Philippines goes well beyond these three service contracts. We have (an) appetite to grow onshore renewable energy projects as well as offshore, and to contribute to the clean and sustainable growth of the country,” Lupa added.
Also Interesting: Asian firms invest in Vietnam wind farms
Interesting Analysis
The Philippines lags behind most of Southeast Asia in terms of renewable energy. Granting foreign firms 100 percent ownership of their power projects is a key first step to catching up. However, approving regulations and actually putting those into practice are two very different things.
CIP now having contracts in hand and permission to build Philippine offshore wind energy projects shows other companies that opportunities do exist. The hope here is that this leads to an influx of clean energy in the country.
Keep Reading: Massive Taiwan offshore wind farm contract awarded to Norway’s DNV
