Offshore wind investors from Spain, the United Kingdom, as well as other European countries are already storming out of the door when it comes to their targeted investments in the Philippines’ offshore wind sector, a highly placed source has affirmed.

The source conveyed that “many European investors are in fact selling their offshore wind projects – and these are mainly the decision of their principals from headquarters, so this is not within the control of their in-country executives or representatives.”

The source noted that the major offshore wind investors divesting are Spanish and UK companies that have major service contracts for offshore wind, as well as another investor from one of the Scandinavian countries.

“The Spanish and UK firms are hunting for white knights to bail them out; and the company from the Scandinavian country is poised to offload major shareholdings, while the local firm with current European-partners is scouting for fresh joint venture for it to stay in the race,” the source stressed.

The industry insider further noted that “the other company that is selling is Asia-based; and its portfolio is not just offshore wind, but it also has investments in the solar industry.”

When asked on the identities of the companies, the source refused to name them at this point, although emphasizing that “everyone in the Philippine offshore wind circle knows these players because they’re openly hunting for buyers,” adding that the investor in the Scandinavian country, in particular, has separate partnership in the country for its other renewable energy (RE) investments – mainly in hydro; “but it’s the offshore wind portfolio that it is intending to unload.”

The source highlighted that “for now, it’s the Danish companies that are still holding the line when it comes to their offshore wind ambitions in the country, but unfortunately for the others, they are already gearing for an exodus.”

For the UK investor, the source hinted that the company is affiliated with another player in the floating solar segment – and both of them are under the arsenal of the green investment platform of a global financial services powerhouse.

Although the Department of Energy (DOE) already rolled out last week its planned 5th green energy auction (GEA) for fixed-bottom offshore wind, the source indicated that the foreign investors’ sell-off spree is already barreling ahead – and as it stands today, no policy salvo may already stop their targeted departure.

The energy department’s bid invitation calls for 3,300 megawatts (MW) of fixed-bottom offshore wind projects that are set for capacity deliveries within 2028 to 2030 timeframe.

As specified by the DOE, fixed-bottom offshore wind facilities had been initially selected for the slated auction round “due to its established global track record, cost-efficiency, and scalability.”

The energy department added “this approach positions the DOE to expedite the near-term deployment of offshore wind, supporting large-scale and reliable renewable energy generation aligned with the country's energy security and climate objectives.”

Until recently, however, there is still no marine spatial planning (MSP) that will guide investors on the ‘no go zones’, leaving industry players sailing blind through waves of uncertainty on how they will navigate some terrains of their project-sites.

On top of that, investors are apprehensive over the scale of tariffs that will eventually be set for offshore wind in the tender package; while the banks are still battling through the financial jungle for such type of emerging technology installations in the RE sector.