DOE issues OSW policy and administrative framework

After a series of public consultations and stakeholders’ engagements pursuant to Section 2 of Executive Order (EO) No. 21 issued by President Ferdinand R. Marcos Jr. on 19 April 2023, the Department of Energy (DOE) promulgated on 16 June 2023 Department Circular No. DC2023-06-0020, which provides the policy and administrative framework for the efficient and optimal development of the country’s Offshore Wind (OSW) resources applicable to all permitting agencies.

This policy and administrative framework defines the implementing guidelines earlier issued by the DOE through a set of rules and procedures for permitting agencies with respect to the issuance of permits and licenses for OSW projects.

Specifically, the framework mandates all permitting agencies to submit a complete list of appropriate permits and clearances, including all requirements, fees, and detailed process flow diagram.

The integration of the processes of permitting agencies into the Energy Virtual One Stop Shop (EVOSS) System shall be a key factor for OSW developers in expediting their work commitments.

It will also provide a streamlined, effective, and efficient permitting and consenting activity that will lessen the development cost of OSW resources, ultimately lowering the rates to the electricity consumers.

Likewise, the OSW policy and administrative framework introduces seven (7) priority activities for the efficient roll-out of OSW projects.

These include: (i) the establishment of the Philippine Offshore Wind Databank (POWD), which will serve as a data repository of all submitted information and documents on OSW projects; (ii) a review of the existing DOE guidelines on the award of Offshore Wind Energy Service Contract and its subsequent monitoring and evaluation system; (iii) preparation of the smart and green grid plan by the Network Service Provider; (iv) formulation and issuance of foreshore lease regulations for the transmission system; (v) preparation by the Philippine Ports Authority (PPA) of the long-term Port Development Plan; (vi) ensuring the safety and security of all OSW projects; and (vii) institutionalization of Marine Spatial Planning.

The Philippines Offshore Wind Roadmap launched last year showcased the country’s potential OSW resources estimated at 178 GW.

As of this date, the DOE has awarded 66 OSW Contracts with a total potential capacity of 53.85 GW.