By means of John Victor D. Ordoñez, Reporter
DENMARK wants to boost onshore and offshore energy investments 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 Scandinavian country is also interested in exploring defense partnerships with Manila, Danish Foreign Minister Lars Løkke Rasmussen told a news briefing in Makati City, near the Philippine capital, on Monday.
“The fact that the major infrastructure partners have quite large investments, offshore investments in the Philippines, I think there is even greater potential on land as well,” he said. “Your government has created very good conditions for offshore wind investment in the Philippines and if you copy and paste that into the country you can unlock enormous potential.”
Last year, the Copenhagen Infrastructure New Markets Fund, a subsidiary of Copenhagen Infrastructure Partners (CIP), became the first wholly foreign entity to be awarded wind energy services contracts by the Department of Energy (DoE) after the Philippines opened up the RE sector to fully foreign ownership.
The offshore wind projects are located in Camarines Norte and Camarines Sur, with an expected capacity of 1,000 megawatts (MW); in Northern Samar (650 MW); and Pangasinan and La Union (350 MW).
“Once again: Danish companies are keen to invest and will drive your green transition,” Mr Rasmussen said. “It’s about avoiding corruption… and the Philippines has made a lot of progress on all these issues.”
“Denmark is a leader in wind energy,” Calixto V. Chikiamco, president of the Foundation for Economic Freedom, said in a Viber message. “Danish companies are already investing in the Philippines due to the liberalization of sustainable projects, making the sector 100% foreign owned.”
Denmark’s top envoy said his country supports negotiations between the European Union (EU) and the Philippines on a free trade agreement, which are expected to be completed in 2027.
Deputy Trade Secretary Allan B. Gepty has said the government’s internal goal is to conclude trade negotiations with the EU by 2026. This is to ensure that there is no gap in trade privileges if the Philippines loses EU concessions by moving to upper middle-income status. .
The Philippines is part of the EU’s Generalized System of Preferences Plus (GSP+), a special incentive for low- and lower-middle-income countries. The country has zero tariffs on more than 6,274 Philippine products.
CIP in May launched its light detection and ranging system (LIDAR), which uses laser technology to measure wind speeds to assess an area’s capacity to generate wind energy, for its planned offshore wind project in Camarines Sur.
The Board of Investments had given green lane approval certificates to CIP’s projects to expedite the processing of permits.
Denmark’s Ambassador to the Philippines Franz-Michael Mellbin has said the Philippines could develop robust renewable energy projects thanks to its diverse natural resources such as wind, solar and biomass.
The Philippines is under pressure to find other sources of indigenous energy due to the looming depletion of the Malampaya gas field, which supplies power plants that account for a fifth of all energy generated in the Philippines. It is expected that the gas field will no longer contain easily extractable gas by 2027.
The government aims to increase the share of renewable energy in the country’s energy mix from 22% now to 35% in 2030 and to 50% in 2040.
“The potential for sustainable Philippine economic growth is enormous,” Mr. Rasmussen said. “I commend the government’s efforts to continually improve the business environment and we want to support and help stimulate this growth.”
MARITIME TIRE
At the same briefing, Philippine Foreign Secretary Enrique A. Manalo said both countries are pursuing greater cooperation between their defense industries.
“I also expressed the hope that we could increase cooperation in the maritime field in the areas of maritime security, promoting international law… and we are also considering the possibility of defense cooperation in the future,” he said.
Mr Rasmussen said he wants the two countries’ defense industries to establish long-term ties. “Speaking of defense, I think we have a business community and defense industry that have certain competencies and strongholds that are probably needed in the Philippines to build the necessary capacity.”
The Philippine and Chinese coast guards have clashed repeatedly in the South China Sea, accusing each other of aggressive behavior involving their ships and damage to the marine environment.
China claims almost the entire sea, a conduit for more than $3 trillion in annual ship trade. The Permanent Court of Arbitration said in 2016 that China’s claims had no legal basis, a ruling that Beijing rejects.
The EU is keen to strengthen ties with the Philippines in diplomatic efforts to enforce international law in the South China Sea amid the dispute with Beijing, Niclas Kvarnström, EU External Action Director for Asia and the Pacific, said Ocean, at a news briefing in Manila last week.
Last week, the Philippines filed a diplomatic protest against China after a Chinese coast guard ship fired water cannons at a Philippine ship carrying supplies for troops stationed around Scarborough Shoal.
According to the Asia Maritime Transparency Initiative, China has been in control of the shoal, which falls within the Philippines’ exclusive economic zone and is claimed by several other countries, since 2012 after maintaining a constant coast guard presence there.
“Minister Rasmussen’s clear expression of solidarity with the Philippines and support for our position on the South China Sea indicate Denmark’s premier status in terms of security and stability,” Mr. Manalo said.