🇵🇭 GWEC successfully ran our first Philippines #offshorewind project financing workshop last week in Manila.
🌊 We gathered industry, government, and local & international financiers to discuss the perceived risks to the bankability of offshore wind projects in the Philippines.
Mark Hutchinson, Director and Chair of the Southeast Asia Taskforce at GWEC, said, “The Philippines has excellent offshore wind resources and a committed government that wants to eliminate energy price volatility. Through this workshop, we want to help the Energy Regulatory Commission (ERC) Philippines to determine the cost of finance so that they can come up with the GEAR price, which is a critical component before an auction can take place.”
🤝🏻 Mark added, “GWEC always takes a #collaborativeapproach because we believe when we work together with the industry, the government, and build understanding with key stakeholders in the industry, we have stronger voices and what we achieve is better.”
Here are some takeaways from the workshop:
🔺As the offshore wind market is still nascent in the Philippines, various risks must be addressed to lower project risks. This includes construction risks, infrastructure availability risks, e.g. ports and roads, foreshore leases and transmission or curtailment risks.
🔺There are innovative financing models for local banks and governments to consider. They can learn from proven and effective models from other markets, such as using indexation and a buffer range for tariff price ceilings.
🔺With the workshop input, the Philippines government will craft the auction design and tariff assumptions to push for feasible offshore wind development in the country.
💬 Ann Margret Francisco, Philippines Country Manager, GWEC, reassured the stakeholders, saying, “There’s much more to be discussed, and GWEC is committed to organising focus group discussions between the government, developers, and local and international financial institutions to overcome the auction design challenges in offshore wind project finance.”
👏🏻 Special thanks to Jay Layug (DivinaLaw) for his invaluable moderation of the workshop, and to our esteemed speakers Jaime Planas (Department of Energy Philippines), Sharon Montaner (ERC), Xylia Sim (Linklaters), Shuji Hashizume (Asian Development Bank (ADB)), Clemens Kappeler (Copenhagen Offshore Partners), Markus Leichum (Deutsche Bank), Michael Chen and Ji Yuan (HSBC), for sharing their expert insights on this topic. Your contributions were instrumental in the success of the workshop.
#GWECAsia #windenergy #renewables #netzero
Partner at Watson Farley & Williams
1wWe are delighted to have advised LE Erzin on this matter as part of our long-standing relationship with Limak. This transaction underlines WFW’s ability to support clients successfully on complex international financings.