Third OECD-DOE Workshop: Unlocking finance and investment in offshore wind power and energy efficiency in public buildings in the Philippines, 6-7 March 2024, Makati, Philippines

1. 1
The Philippines
Clean Energy Finance and Investment Roadmap
Roadmap Launch Event and Workshops
on Energy Efficiency in Public Buildings
and Offshore Wind
6-7 March 2024

2. 2
Overview of OECD CEFIM Programme
CEFIM country partners: Colombia, Egypt,
India, Indonesia, Philippines, South Africa,
Thailand and Viet Nam
OECD programme funded by Australia, Canada,
Denmark, Egypt and Germany
Aim: to help accelerate clean energy finance and
investment by strengthening domestic enabling
conditions
Scope: renewable electricity, energy efficiency in
buildings and industry decarbonisation
Activities:

3. The CEFIM programme, Roadmap process and
timelines
MARCH 2022
Project Steering
Committee (PSC)
& Technical
Working Groups
(TWG)
Workshops and
consultations in
the Philippines
with public
sector, private
sector and
international
organisations
Roadmap
revision process
by DOE, industry
experts and
OECD
Roadmap
publication and
launch event
Implementation
of support
activities
MAY-NOV 2022 JUN-DEC 2023 MARCH 2024 H2 2024
Workshops and
consultations in
the Philippines
with public
sector, private
sector and
international
organisations
Roadmap
revision process
by DOE, industry
experts and
OECD

4. Scope of the Clean Energy Finance and Investment
Roadmap of the Philippines (“the Roadmap”)
1. Offshore wind 2. Energy Efficiency in public buildings
In close collaboration with the Department of Energy (DOE) of the Philippines, offshore
wind and energy efficiency in public buildings were selected as priority areas for this
Roadmap.
50% RE
in the power generation
mix by 2040
+10x RE
investments needed vs.
today’s annual average
178 GW
technical offshore
wind potential
+60 GW
Wind energy service
contracts awarded
24% economy
wide energy savings
by 2040
2% annual
reductions in energy
consumption in
buildings
+36x investments
needed vs. today’s
average
LGUs as principal
target adopters to kick-
start an energy
efficiency market

5. 5
1.
Target setting
for
development
plans
Maritime spatial plans
Power development plans
Transmission development plans
2.
Zone
allocation for
OSW go-to
areas
Data driven process,
including biodiversity,
socio-economic and
broader infrastructure
planning
3.
One-stop-shop
approach
Integrates the OSW go-to areas
Adapted to OSW needs & timelines
Clear rules and digital tools
4.
Grid
networks
and
transmission
planning
Proactive grid planning
Streamlined project
selection process
Clarified asset boundary
classifications
5.
Port
expansion
and
upgrades
Multi-port strategy
Investment certainty
Future utilization rates
Key recommendations to unlock finance and investments
for offshore wind in the Philippines (part 1/2)

6. 6
Key recommendations to unlock finance and investments
for offshore wind in the Philippines (part 2/2)
6.
Auction
design to
improve
competition
outcomes
Frontloaded schedule
Revenue stabilisation
Realistic timelines
Inflation indexed tariffs
Clear and predictable regulations
Enhanced PPA credibility
Diversity of capital
7.
Offshore
wind
finance
8.
Capacity
building
Improve
competitiveness,
learning curves, advance
supply chain buildout
It’s a
marathon and
not a sprint.

7. 7
1.
Harmonised
implementation
plans
Clear timelines and
pathways between
national agencies,
local government,
central government
3.
Regulatory
reforms
Procurement rules for
energy efficiency projects
exceeding one calendar
year, as well as bundled
contracts
Key recommendations to unlock finance and investments for
energy efficiency in public buildings in the Philippines (part 1/2)
2.
Public budget
allocation for
LGUs
Assessing the budget
allocation of LGUs and the
needed resources against the
time-bound targets under
NEECP 2023-2050

8. 8
4.
Data collection
and
transparency
Improve the trust in the
business model by addressing
perceived risks through data
analytics on savings,
performance, payback period
5.
Improved
access to
finance
Diversified funding through
project aggregation to facilitate
private sector engagement,
especially equity finance
6.
Capacity
building for
local impact
Public awareness campaigns
Sharing of best practices
Training and development
Key recommendations to unlock finance and investments for
energy efficiency in public buildings in the Philippines (part 2/2)

9. 9
Please visit our webpage:
www.oecd.org/cefim/
For more information, please contact:
Ariola.Mbistrova@oecd.org
Geraldine.ANG@oecd.org

10. 10

11. 11
Investments in new renewable energy projects in the Philippines 2010 – 2022 (includes
BESS)

12. Actions to mobilise finance & investments for offshore wind
and energy efficiency in public buildings in the Philippines
Recommendations common to both offshore wind and energy efficiency in public buildings:
▪ Long-term vision, enhanced cross-government collaboration and integrated planning
▪ Capacity building across all the supply chain to maximise local content and benefit to the local communities
Offshore wind priority areas:
▪ Planning and permitting: one-stop-shop
approach
▪ Onshore support facilities: grid networks,
port infrastructure, other transportation
infrastructure
▪ Auction design and offshore wind
regulatory framework
▪ Implications of government policies on the
cost of finance
Energy efficiency in public buildings
priority areas:
▪ Budgetary constraints of LGUs, public
procurement and public accounting rules
▪ Access to finance for LGUs
▪ Data collection and transparency
▪ Project aggregation to establish an
investment pipeline

13. 13
Country
Number of
auctions
(& auctioned
projects)
Auctioned
projects reaching
FID
(% of
capacity)
Capacity
weighted
average
prices
(€2020/
MWh)
Funding mechanism
(CfD, FIT, tax credit)
Tenor
(years)
Inflation
indexed
Grid
connection
responsibility
Site
developm
ent
Seabed
lease auction
Devex
support
Penalties for non-
compliance
Technology
specific
China 7
(21)
9
(36.8%)
103.1 Administrative FIT/competitive
FIT
n/a No Guaranteed access n/a n/a n/a Permit loss w/o construction >2 years Yes
United Kingdom 4
(9)
8
(99.9%)
66.5 Two-sided CfD 15 Yes Project Bidder Yes, separate
auction prior CfD
No Non-delivery: Banned for 2 years Partial
(different
technology pots)
Germany 3
(13)
9
(54.2%)
15.1 One-sided CfD 20 No TSO
(socialised)
Governme
nt
No Yes Financial €0.1–0.2/MW Yes
Netherlands 8
(8)
7
(83.2%)
26.8 One-sided CfD 15 No TSO
(socialised)
Governme
nt
Yes, part of
auction criteria
Yes Non-delivery: €10m Late: €3.5m/mo Yes
Denmark 8
(8)
5
(83.8%)
89.4 Two-sided CfD 20 No Project
(as of 2021)
Bidder No No Non-delivery/Late: =€m0.15/MW + less
supported production
Yes
Chinese
Taipei
2
(14)
6
(38.2%)
90.8 Administrative FIT/competitive
FIT
20 No TSO
(socialised)
Governme
nt
No No No Yes
United States 9
(13)
1
(9.4%)
75.5 Fixed OREC /
fixed-priced PPA
20 Yes Project Bidder Yes, prior federal
seabed auctions
No No Yes
France 5
(8)
4
(42.0%)
133.7 FIT / two-sided CfD 20 Yes (for 60%
of the tariff)
TSO
(socialised)
Bidder No No CfD shorted by the number of days
delayed
Yes
Philippines (based on
current GEAP)
na na na Fixed price PPA 20 No Project
(to be further clarified)
Bidder No No Delay >1 year: 20% performance bond;
Delay<1 year: 0.1%/day to a max of
10% of project cost
Partial (different
technology bands)
Overview of main fixed-bottom offshore wind auction design in
established offshore wind markets (as of December 2021)

14. 14
Overview of main floating offshore wind regulatory design in
established offshore wind markets (as of December 2021)
Main regulatory design
elements
France
United
Kingdom
Norway Spain Ireland Italy Portugal Greece
Floating wind
target
Yes
750 MW (3x250 MW) by
2030 and 1500 MW
(extensions)
Yes
5000 MW by 2030
Yes
1500 MW
Yes
1000 - 3000 MW
Partially
5000 MW of mostly bottom
fixed offshore wind by
2030, with strong potential
afterwards
Partially
3500 MW of offshore
wind without breakdown
Yes
2000 MW
Yes
2000 MW
Areas for
floating
available in
Maritime Spatial
Plan
Yes
Specific locations to be
determined after
stakeholder consultation
Yes Yes Yes Yes, but work is ongoing
The Offshore Renewable
Energy Development Plan
II identified areas for
upcoming auction
No,
but work is ongoing
Yes No,
but work is ongoing
Consult
stakeholders
Yes Yes Yes Yes Yes
Under
consideration
Yes
Under
consideration
One-stop shop
authority
Partially Yes
Under
consideration
Under
consideration
Under
consideration
No No No
Technology
specific auctions
Yes Partially Yes
Under
consideration
Under
consideration
Under
consideration
Under
consideration
Under
consideration
Rounds frequency,
volumes, and
evaluation criteria
Yes Yes Yes
Under
consideration
Under
consideration
Under
consideration
Under
consideration
Under
consideration
Support for supply
chain, ports, and
mass production
Partially
Recovery plan budget
for greener ports
Yes
Under
consideration
Partially
Recovery plan budget
for R&I
Under
consideration
No
Under
consideration
No
Grid connection roles and
responsibilities
Yes Yes Yes Yes Yes
Under
consideration
Under
consideration
Under
consideration