PPA Targets 3 Luzon Ports for Offshore Wind
Philippines to Convert Three Luzon Ports into Offshore Wind Terminals by 2028
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The Philippine Ports Authority (PPA) is investing PHP 47 billion to transform three Luzon ports into dedicated offshore wind terminals by 2028. This move aligns with the national government’s ambition to establish the country’s first offshore wind power generation capacity within the current Marcos administration. The Philippine Star reported on this significant development.
Port-by-Port Breakdown
The conversion will be rolled out across three key ports, each with its own timeline and challenges:
Port of Mercedes, Camarines Norte: This port will be the first to undergo conversion, with a two-phase project costing approximately PHP 2.4 billion per phase. The first phase is targeted for completion by the end of 2026. PPA General Manager Jay Santiago stated the agency intends to begin the bidding process before the end of 2024, ensuring sufficient time for the Department of Energy (DOE) to generate the first kilowatt of power by the first quarter of 2028.
Batangas Port: The PPA is currently finalizing a PHP 14-billion Port Management Terminal Contract (PTMC) to convert a 27-hectare property adjacent to the Batangas Container Terminal into an offshore wind site.
Port of Currimao, Ilocos Norte: This port faces the most significant hurdle – funding. Initial estimates place the development cost at PHP 28 billion. Santiago indicated the PPA is considering both customary procurement and a PTMC model, acknowledging that direct PPA funding is unlikely. The agency is also assessing whether there will be private sector interest in a PTMC arrangement given the high cost.
Why Specialized Ports are Needed
Originally,the PPA considered converting ten ports,but the plan was scaled back due to cost and technical limitations. Offshore wind turbines require specialized handling equipment and infrastructure that conventional ports typically lack.These massive components demand port facilities capable of accommodating their size and weight.
Supporting Voices & Future Implications
Bicol saro party-list Rep. Terry ridon voiced support for the redevelopment of the Port of Mercedes, highlighting its current underutilization. This project not only supports the growth of the offshore wind industry but also revitalizes existing port infrastructure.
The development of these offshore wind terminals is expected to create numerous economic opportunities, including jobs in construction, logistics, and renewable energy. It also positions the Philippines as a regional leader in the burgeoning offshore wind sector.
| Port | Estimated Cost (PHP Billion) | Target Completion (Phase 1/Overall) | Funding Model |
|---|---|---|---|
| Mercedes, Camarines Norte | 4.8 | End-2026 / 2028 | Procurement |
| Batangas | 14 | TBD / 2028 | PTMC |
| Currimao, Ilocos Norte | 28 | TBD / 2028 | Procurement or PTMC (TBD) |