A European energy company, Mainstream Renewable Power (Mainstream), has secured service contracts with the Philippines’ Department of Energy (DOE) for two new onshore wind projects to be developed separately at demarcated sites in the Luzon and Visayas grids. These clean energy ventures are a 340-megawatt (MW) wind farm in Panaon island, Leyte, and a 100-MW wind farm in Cagayan province. Each Wind Energy Service Contract (WESC) has a 25-year operating period.
The company, which has investments across the Asia-Pacific, Latin America, and Africa, was able to obtain 100% foreign ownership for these projects. This was made possible by the relaxation of restrictions on foreign ownership in the country’s solar and wind sectors starting in 2022, allowing more international players to participate in the growing renewable energy market.
The signing of the service contracts in March 20204 was witnessed by DOE Secretary Raphael P.M. Lotilla and the Norwegian Ambassador to the Philippines, Christian Lyster.
“Mainstream will be bringing in financial muscle and technological heft to work with our world-class workers throughout the construction and operational phases of all these projects, which means more employment for our people and livelihood opportunities in these areas,” Lotilla said at the event.
Mainstream, a renewable energy company headquartered in Dublin, Ireland, with Norwegian and Japanese backing, has investment portfolios across Asia Pacific, as well as in Latin America and Africa.
Lotilla emphasized that this partnership aligns with the Philippine government’s commitment to developing the country’s indigenous and renewable energy sources, following the removal of restrictions on foreign ownership in this sector.
Lyster echoed these sentiments, stating that the renewable energy company is committed to “creating conducive conditions for renewable energy development in the Philippines”, adding that Norway is steadfast in cementing its partnership with the Philippines, particularly in the nation’s determined shift towards renewable energy developments.
This partnership represents a significant step forward in the Philippines’ pursuit of sustainable energy solutions, fostering job creation and economic growth while contributing to the country’s renewable energy goals.
The two projects undertaken by Mainstream are poised to generate 440 megawatts of clean energy for the Philippines, marking a significant milestone in the company’s commercial development. Lotilla said, “The projects represent Mainstream’s first wholly-owned onshore wind service contracts in the Philippines and one of the first 100 percent foreign-owned companies to develop the country’s indigenous and renewable energy sources.”
Mainstream’s General Manager for Asia Pacific, Eduardo Karlin, emphasized that the new contracts will bolster the company’s investment portfolio growth in the Philippines, building upon the initial joint venture with Aboitiz Power for a wind farm installation in Camarines Sur. This existing venture has a 20-year power supply agreement awarded through the DOE’s Green Energy Auction (GEA) Program. Construction is expected to start late this year, and commercial operation is expected to start in 2026
“We continue to grow our development footprint across the Philippines,” Karlin said. “We are committed to the Philippine market and well-placed to be part of the country’s energy transition and assist the government in reaching their targets of 35% renewable energy by 2030 and 50% by 2050.”
Mainstream has already been catering to the Philippine market since 2017, supported by a full technical and commercial team.
Source: European firm inks service contracts for 2 wind power projects