Many of the renewable energy (RE) investors that are now advancing the implementation of their blueprinted projects have been pitching for local sourcing of supply as well as equipment that they can utilize in the construction and overall development of their projects.

Energy Secretary Raphael P.M. Lotilla conveyed that the Danish investors, in particular, are interested to tap local sources of shipping vessels that they will be needing not just in the installation but up to operations of their offshore wind farm projects in the country.

“The Danes companies have been expressing strong interest in the offshore wind sector in the Philippines; and they would like to source locally -- if possible, many of the parts for supplies that are needed,” he stressed.

The energy chief added that the local supply and equipment the foreign investors have been eyeing include those on pylons or the towers used for carrying power lines; as well as the vessels that are vital for the offshore wind projects being lined up in various parts of the country.

“They would like to tap into the existing industries in the country – so we will try our best to help out there because in the case of Denmark, they have been actually supplied with ships - particularly from Balamban in Cebu that’s why they know the quality of these vessels,” Lotilla stated.

The energy chief, nevertheless, qualified that the ships being assembled in Cebu are intended for export, hence, there is a need to re-assess the capability of these shipbuilding firms to supply the needs of the domestic market.

“We are exploring ways to be able to tap into these – because if we can source these locally, then more job opportunities are going to go to our local workers,” he said.

To stimulate domestic production of these equipment and materials for the thriving RE sector, the energy chief similarly specified the need for coordination among government agencies to support the business growth of these industries.

“Preparing for the opportunities that arise is again: it’s a whole of government approach – it’s not just the Department of Energy, we’ll work closely with DTI (Department of Trade and Industry), with the private sector – these are the things that we will continue to work on,” he pointed out.

Lotilla indicated that the country will not specifically mandate ‘local content’ to these RE investors, but the government will highly encourage them to opt for local sourcing of supply and materials if these will fit the requirements on their project developments.

“We are not going to require local content, but to the extent, it makes business sense for them if they can source local and high quality parts for deployment to offshore wind. As much as possible, they would really like to do so, because it would lower their cost,” the energy secretary noted.

And if the sponsor-firms could trim their capital outlay for RE projects, that will also redound as cost reduction in the eventual tariff that they will pass on to consumers.