Denmark is eyeing more energy projects in the Philippines, keen on defense deals

By John Victor D. Ordoñez, A reporter

DENMARK is set to increase offshore and offshore energy investment in the Philippines, according to its foreign minister, which could boost the Southeast Asian country’s efforts to diversify its energy mix amid a global push for renewable energy (RE).

The Nordic country is also interested in exploring defense ties with Manila, Danish Foreign Minister Lars Løkke Rasmussen said at a press conference in Makati City near the Philippine capital on Monday.

“The fact that our major infrastructure partners have very large investments, offshore investments in the Philippines, I think there is potential for large offshore as well,” he said. “Your government has made excellent conditions for offshore wind investment in the Philippines and if you can copy-paste that offshore, you can unlock great potential.”

Last year, Copenhagen Infrastructure New Markets Fund, an affiliate of Copenhagen Infrastructure Partners (CIP), became the first wholly foreign-owned business to be awarded wind power service contracts by the Department of Energy (DoE) after the Philippines opened up the RE sector to help. full foreign ownership.

The offshore wind projects in Camarines Norte and Camarines Sur, with an estimated capacity of 1,000 megawatts (MW); Northern Samar (650 MW); and Pangasinan and La Union (350 MW).

“Also, Danish businesses are willing to invest and will drive your green transition,” said Mr Rasmussen. “It’s about avoiding corruption… and the Philippines has made great progress on all these issues.”

“Denmark is a leader in wind energy,” said Calixto V. Chikiamco, president of the Foundation for Economic Freedom, in a Viber message. “Danish companies are already investing in the Philippines because of the liberalization of RE projects, which opens the sector to 100% foreign ownership.

Denmark’s top envoy said his country supports negotiations between the European Union (EU) and the Philippines on a free trade agreement, which is expected to be concluded in 2027.

Commerce Secretary Allan B. Gepty said the administration’s goal is to conclude trade negotiations with the EU by 2026. This is to ensure that there will be no gap in trade rights if the Philippines loses EU concessions by completing the upper middle income level. .

The Philippines is part of the EU’s Generalized Scheme of Preferences Plus (GSP+), which is a special incentive for low- and low-income countries. The country enjoys zero employment in more than 6,274 Philippine-made products.

CIP in May launched its light detection and ranging (LIDAR) system, which uses laser technology to measure wind speed to assess the capacity of the area to generate wind energy, in its planned offshore wind project in Camarines Sur.

The Finance Board has granted CIP projects certificates of approval to speed up the processing of approvals.

Danish Ambassador to the Philippines Franz-Michael Mellbin said the Philippines can develop renewable energy projects because of its diverse natural resources such as wind, solar and biomass.

The Philippines is under pressure to find alternative sources of indigenous energy with the imminent shutdown of the Malampaya gas field, which supplies power plants that account for a fifth of the Philippines’ total energy production. The gas field is expected to run out of readily available gas by 2027.

The government aims to increase the share of renewable energy in the country’s electricity mix to 35% by 2030 and to 50% by 2040 from 22% now.

“The potential for economic growth in the Philippines is enormous,” said Mr. Rasmussen. “I commend the government’s effort to continue to improve the business environment and we want to help and assist in promoting this growth.”

MARITIME OBLIGATIONS

In the same forum, Philippine Foreign Secretary Enrique A. Manalo said both countries are looking for more cooperation between their defense industries.

“I also raised the hope that we can cooperate more in the maritime area in terms of maritime security, promote international law … and look at the possibility of defense cooperation in the future,” he said.

Mr. Rasmussen said he wants the defense industries of both countries to form long-term partnerships. “When I talk about defense, I think we have a business community and a defense industry that has certain capabilities and strengths, which may be needed in the Philippines to build the necessary capabilities.”

The Philippine and Chinese coast guards have repeatedly clashed in the South China Sea, accusing each other of aggressive behavior involving their ships and damaging the marine environment.

China claims almost the entire ocean, a conduit for more than $3 billion in annual shipping trade. The Permanent Court of Arbitration in 2016 ruled that China’s claims had no legal basis, a decision Beijing rejected.

The EU is willing to increase relations with the Philippines in communication efforts to support international law in the South China Sea amid its dispute with Beijing, the Managing Director of the EU External Action Service for Asia and the Pacific Niclas Kvarnström told a press conference in Manila last week.

Last week, the Philippines filed a protest against China after a Chinese Coast Guard vessel fired on a Philippine ship carrying military supplies in Scarborough Shoal.

China has controlled the bulk, which falls in the exclusive economic zone of the Philippines and is claimed by several other countries, since 2012 after a coastguard presence, according to the Asia Maritime Transparency Initiative.

“Minister Rasmussen’s clear expression of solidarity with the Philippines and support for our position in the South China Sea shows Denmark’s central position in security and stability,” Mr Manalo said.