Investors seek quota or mandatory pie for offshore wind under GEAPCost and grid integration remain as major hurdles for targeted OSW installations
The RPS edict requires industry participants, primarily the distribution utilities, to secure prescribed percentage of their supply from RE-generated capacities; and the increment was mandated by the DOE at 2.52-percent annually. On the initial years, Cerezo stated that the bidding target will just be purely for offshore wind capacity; but when storage will already reach higher scale of commercial maturity and advancements, the next game plan could be coupling between OSW and energy storage, including that of green hydrogen.
In a study undertaken by the World Bank Group relating to investment hurdles for offshore wind in the Philippines, it listed major concerns yet to be addressed squarely – mainly those on energy cost; transmission or grid integration; environmental and social impacts; limited local supply chain; financing and bankability of projects.
As noted by developers of offshore wind projects, the rule of thumb on upfront capital cost for this technology installation is relatively expensive at $2.5 million per megawatt if compared to solar which is now at less than $1.0 million per megawatt.