By Francis Allan L. Angelo
The Department of Energy (DOE) of the Philippines has embarked on a significant stride towards renewable energy by signing contracts with Mainstream Renewable Power for the development of two onshore wind projects.
These projects, located in Cagayan Province and Leyte, collectively boast a generation capacity of 440 megawatts (MW), marking a notable expansion in the country’s clean energy infrastructure.
Mainstream, a 100 percent foreign-owned renewable energy company, has secured its first wholly owned onshore wind service contracts in the Philippines.
This milestone reflects the Philippine government’s commitment under the Marcos Jr. Administration to bolster indigenous and renewable energy sources, as acknowledged by Energy Secretary Raphael P.M. Lotilla during the signing ceremony.
“The signing of these onshore wind contracts further accelerates the implementation of the thrust of the Marcos Jr. Administration to develop the country’s indigenous and renewable sources of energy,” Lotilla said, highlighting the policy shift following the relaxation of foreign ownership restrictions in the renewable sector.
Witnessed by Norwegian Ambassador Christian Lyster, the contract signings underscore Mainstream’s burgeoning role in the Philippine energy market.
Eduardo Karlin, Mainstream’s General Manager for Asia Pacific, recognized this as an important juncture: “The awards of these contracts represent an important milestone for Mainstream as we continue to grow our development footprint across the Philippines.”
Mainstream, with its ongoing partnership with Aboitiz Power Corporation and its operation in the country since 2017, is expected to be a key player in the Philippines’ transition to cleaner energy, targeting a renewable energy share of 35 percent by 2030 and 50 percent by 2050.
The upcoming Santa Ana Cagayan and Panaon Island wind projects align with Mainstream’s previous ventures, including the 58 MW onshore wind project in Camarines Sur. This project, which enjoys a 20-year offtake contract through the Green Energy Auction Program, is set to begin construction in late 2024 and commence operations in 2026.
Secretary Lotilla conveyed his optimism regarding the economic upswing in the Philippines, praising the influx of foreign investment in the renewable energy sector. Mainstream’s entry not only infuses capital but also brings technological expertise, which, combined with the local skilled workforce, is expected to create job and livelihood opportunities.
The involvement of Norway through its ambassadorial presence reflects the international support for the Philippines’ renewable energy initiatives. Ambassador Lyster commended DOE’s conducive environment for green investments and reiterated Norway’s support for the country’s energy shift.
To date, the DOE has issued 21 WESCs to various foreign-owned entities, underscoring the Philippines’ welcoming stance for international cooperation in the development of renewable energy projects. This series of onshore wind projects, partly owned by European investors from Denmark, Belgium, France, and The Netherlands, heralds a future where sustainable energy is integral to the nation’s growth.
