Page 30: of Maritime Reporter Magazine (April 2025)

OFFSHORE ENERGY

T e Philippines: A High-Stakes Frontier Geopolitical Challenges:

Navigating Troubled Waters

The Philippines also has signi? cant potential for ? oating offshore wind due Offshore wind development in EAP does not exist in a vac- to its deep waters and fragmented ge- uum—it is deeply intertwined with regional geopolitics: ography comprising over 7,000 islands. 1. Territorial disputes: Competing claims over maritime ter-

The country’s technical potential stands ritories, such as the Pratas Islands, Paracel Islands, Spratly at approximately 178 GW. Islands, and Maccles? eld Bank the South China Sea, create

Offshore wind could address several risks for infrastructure projects near contested waters.

pressing issues for the Philippines: re- 2. China’s strategic dominance: China’s assertive actions, ducing reliance on imported fossil fuels, including militarization of arti? cial islands in the East and alleviating land-use con? icts for energy South China Seas, raise concerns about security vulnerabili- development, and enhancing energy in- ties for neighboring countries.

dependence amid volatile global markets. 3. Supply chain and investment leverage: Heavy reliance on

However, like Vietnam, the Philippines faces signi? cant Chinese components exposes other nations to economic coer- obstacles including regulatory inef? ciencies and limited local cion or trade disruptions in case of potential disputes. Further, supply chain capabilities. Recent government initiatives, such China’s investment in its neighbors’ infrastructural develop- as streamlined permitting processes, offer hope for acceler- ment creates asymmetric dependencies. For instance, the State ated development. Grid Corporation of China owns a 40% stake in the National

The ? rst commercial-scale projects are expected online by Grid Corporation of the Philippines, which could become a 2030 with gradual growth thereafter. threat to the latter’s national sovereignty and energy security.

Exhibit 8 Geopolitical risk—market sensitivity—business environment risk matrix. Bubbles and their titles represent the total installed capacity market size (projected for 2035). Source: author’s creation. For the “business environment risk” indicator, interpretation of data from Allianz Trade (“Country Risk Ratings & Reports,” Allianz Trade, accessed Decem- ber 4, 2024, https://www.allianz-trade.com/en_US/resources/country-reports.html). 30 Maritime Reporter & Engineering News • April 2025

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