DOE Issues Implementing Guidelines for Offshore Wind Development

Pursuant to Section 9 of Executive Order (“EO”) No. 21, titled “Directing the Establishment of the Policy and Administrative Framework for Offshore Wind (“OSW”) Development” issued on 19 April 2023, on 18 May 2023 the Department of Energy (“DOE”) issued, adopted, and promulgated Department Circular No. DC2023-05-0013, otherwise known as the “Implementing Guidelines of EO 21” or the “EO 21-IG.”

EO 21-IG provides the necessary guidelines for the effective implementation and execution of EO No. 21 which includes, among others, the different development stages of OSW Projects or those related to the exploration, development, and utilization of OSW resources for power generation and other products and uses such as hydrogen and other by-products.

OSW Development Activities are those which must be undertaken to completely develop an OSW Project covering the (1) Pre-Development, (2) Construction, and (3) Commercial Operation stages. 

The Pre-Development Stage is further divided into the (a) acquisition of relevant permits and clearances; (b) resource assessment through the conduct of onsite technical surveys, among others; (c) road, port, and grid capacity assessment; (d) feasibility study of matters relating to the OSW Project such as financial and economic studies; and (e) financial closing should the result of the feasibility study suggest that the OSW Project is commercially viable.

The Construction Stage is divided into (a) engineering, procurement, and construction tendering; (b) permitting and consenting for construction and commercial operation; (c) the construction itself; and (d) testing and commissioning. 

Meanwhile, the Commercial Operation Stage is divided into the operations and maintenance of the OSW Project and then its decommissioning at the end of its operational life.

Consistent with the provisions of EO No. 21, the DOE is also mandated to issue a Policy and Administrative Framework for the efficient and optimal development of the country’s OSW resources. Among others, this shall include streamlined requirements and procedures for the application, administration, and development of an Offshore Wind Energy Service Contract.

The DOE shall also adopt a Whole-Of-Government Approach for the proper implementation of EO No. 21 and for the expeditious realization of OSW Projects. It shall collate and disseminate the processes and requirements for OSW Development Activities to government related concessionaires or franchisees that issue permits or authorizations relevant to OSW projects, otherwise known as Permitting Agencies. 

Any approved processes are to be integrated into the Energy Virtual One-Stop Shop System which allows for the coordinated submission and synchronous processing of all required data and also provides a single-decision making portal for actions on applications, among other related functions.