Market Trends of Philippines Wind Energy Industry
Onshore Wind Energy Segment is Expected to Dominate the Market
- As energy demand rises, wind turbines are helping the Philippines diversify its energy sources beyond fossil fuels and generating power.
- According to the National Renewable Energy Plan, the Philippines has set the goal of adopting an additional 1,548MW of renewable energy by 2030. A breakdown reveals that wind power is expected to account for the most significant share at 38% (593MW).
- Additionally, according to International Renewable Energy Agency, as of 2022, the Philippines' total onshore wind energy capacity accounted for 443 MW. With the country's wind energy potential and companies investing in onshore wind energy, the installed capacity is expected to increase in the forecast period.
- Moreover, in May 2023, MingYang Smart Energy agreed to supply more than 300MW of wind turbines for two wind farms developed in the Philippines by Singaporean developers Vena Energy. Vena Energy had purchased 49 MySE 6.25-172 turbines for both wind farms. Installation is scheduled for 2024 at both Talim and Sembrano. These wind projects are expected to drive the onshore wind energy market during the forecast period.
- Thus, owing to the above points onshore wind energy segment is expected to dominate the market.
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Wind Potential is Expected to Drive the Market
- The greatest wind resources of the Philippines are in northern and central areas, such as Batanes and Babuyan, and the north and central Luzon areas. Because of the high potential of wind energy in the country, wind energy developers are interested in commercializing wind energy in the Philippines.
- The Philippines has 11,055 km2 of windy land estimated to have good-to-excellent wind resource potential. Wind speeds at these sites range from 6.4 meters per second (m/s) to 10.1 m/s, with wind-power-density values of 300-1,250 Watts per square meter (W/m2 ). Using conservative assumptions of about 7 MW/km2, these areas will support more than 77,000 MW of potential installed capacity, providing more than 195 billion kWh per year.
- According to International Renewable Energy Agency, as of 2022, the Philippines' total wind energy capacity accounted for 443 MW. Additionally, the government aims to expand significantly the country's wind capacity in the coming years and targets 35% of energy generation from renewables by 2035 and 40% by 2040.
- Moreover, in January 2022, Iderbola SA signed an agreement with Triconti ECC Renewables to construct five offshore wind projects with up to 3.5 GW capacity in the upcoming years. This project helps the Philippines promote its National Renewable Energy Program (NREP) for 2020-2040, which has set a target of a 35% share of renewable energy in the power generation mix by 2030 and a 50% share by 2040.
- Therefore factors such as huge wind energy potential and increasing investments in the country's renewable energy sector are expected to drive the market studied in the coming years.
