Pioneer of the energy transition: Philippines' renewable energy development strategy
Policy Innovation and International Cooperation: Foundation for Sustainable Growth in the Philippines’ Renewable Energy Sector
Philippine renewable energy trends
The Philippines is quickly emerging as a leader in the ASEAN region in the field of renewable energy. According to the latest data from Global Energy Monitor (GEM), the Philippines currently has an installed capacity of 1766 MW, ranking second in the ASEAN region after Vietnam in combined solar and wind power generation. In particular, the market size is expected to reach 2GW by 2024, and 9.8 MW of solar power generation capacity and 2030 MW of wind power generation capacity are expected to be added by 1.
The Philippine Department of Energy (DOE) has set a goal of expanding 2030% of the energy mix* to renewable energy by 35 and 2040% by 50 through close cooperation between the government and energy stakeholders. According to the DOE, to achieve this goal, a total of 2040GW of additional capacity, including 27GW of solar power, 17GW of wind power, 6GW of hydropower, 2.5GW of geothermal power, and 364MW of biomass, must be secured by 102.
Note*: Energy mix is a compound word derived from the word 'mix', which means mixing, and has the meaning of diversifying energy sources. It includes the provision of appropriately responding to explosively increasing energy demand through the efficient use of ‘existing energy’ such as oil and coal and the convergence of ‘new energy sources’ such as solar energy.
National Renewable Energy Program of the Philippines (NREP)
The Philippines has taken steps toward a renewable energy future through the National Renewable Energy Program (NREP). The program promotes the adoption of various renewable energy sources such as solar, wind, hydro, and geothermal, and aims to increase the proportion of electricity generation from renewable energy to 2040% by 50 under the leadership of the Philippine Department of Energy (DOE). I'm doing it. These goals are supported by the Renewable Energy Act of 2008 (Republic Act 9513).(link)This law establishes a legal and institutional framework to promote the development and utilization of renewable energy in the Philippines.
As part of the NREP, DOE announced that it has approved projects with 2381.50 MW of wind energy potential, of which 426.90 MW have been installed. This suggests that the wind energy business has the potential to expand further through technological advancement and continued investment. In addition, in the solar energy sector, the installation of large-scale solar farms and small-scale rooftop solar panels is actively underway by taking advantage of the Philippines' abundant solar exposure, contributing to stable power supply and reduction of energy costs. Hydroelectric and geothermal energy projects that take advantage of the Philippines' diverse terrain and geothermal activities also provide a sustainable source of energy and minimize environmental impact.
Policy and regulatory change through NREP
The policy and regulatory changes to implement NREP marked a significant turning point for the Philippines in the renewable energy sector. The introduction of the Renewable Energy Act introduced several mechanisms to promote the development and use of renewable energy, which in turn encouraged investment and encouraged consumers and businesses to participate more actively in the renewable energy market. Policies such as Fixed Price Purchase (FiT), Net Metering, Renewable Portfolio Standard (RPS), Green Energy Options Program (GEOP) and Renewable Energy Markets (REM) increase the economic stability of renewable energy projects and attract long-term investment. Contributing to doing this. This comprehensive approach is playing an important role in helping the Philippines move towards a sustainable future through renewable energy.
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① Renewable Energy Act of 2008 (Republic Act No. 9513): This basic policy promotes the development and utilization of renewable energy by establishing the legal and institutional framework for NREP in the Philippines. By laying the foundation for the sustainable development of renewable energy, the Philippines is beginning to chart a path toward a green energy transition. ② Fixed price purchasing system (FiT): Encourages investment in renewable energy by guaranteeing fixed payment rates for a specific period for electricity generated from renewable energy sources such as wind power, solar power, biomass, and hydroelectric power. This mechanism increases the economic stability of renewable energy projects and contributes to attracting long-term investment. ③ Net metering: residential and commercial facilities can generate their own electricity from renewable energy sources and sell surplus power to the grid. This provides economic benefits to consumers and businesses that adopt renewable energy solutions and promotes the use of renewable energy. ④ Renewable Energy Portfolio Standard (RPS): Increases demand for green energy by requiring electricity distributors to procure a minimum portion of their power supply from renewable energy sources. As a result, the growth of the renewable energy market is promoted and the diversification of renewable energy sources is encouraged. ⑤ Green Energy Option Program (GEOP): Enables end users to select renewable energy in their electricity supply, motivating consumers to actively participate in the green energy market. This contributes to increasing awareness and acceptance of renewable energy. ⑥ Renewable Energy Market (REM): RPS compliance and renewable energy certificate trading become easier, improving transparency and flexibility in renewable energy trading. The value of renewable energy in the market is recognized and the use of renewable energy is further promoted. |
[Source: Philippine Gazette]
Philippine government accelerates energy transition by opening up foreign investment in renewable energy sector
A public consensus on the growing need for renewable energy sources such as solar, wind and hydropower in the Philippines was confirmed in a survey by Pulse Asia Research, Incorporated. The survey was conducted on more than 1200 adults and found that 85% of respondents rated the importance of increasing the use of renewable energy sources as 'very important'. This perception was observed to be common across various social classes.
Majah Ravago, an energy economist at Ateneo De Manila University, said in a recent presentation that with electricity consumption in the Philippines expected to quadruple from current levels by 2040, the government will ease regulations and He emphasized the need to encourage investment in renewable energy and expand the transmission network.
To meet these public demands, the Philippine government is providing opportunities for foreign capital investment with the aim of increasing the proportion of renewable energy through the National Renewable Energy Program (NREP). Philippine President Marcos has ordered a performance review of the National Grid Corporation of the Philippines (NGCP) to address delays in grid connection. In addition, by liberalizing the renewable energy sector and granting 100% ownership of projects and corporations to foreign investors, we have created an environment in which essential reforms for energy transition can be implemented.
implication
The Philippines' rapid emergence as a leader in renewable energy in the ASEAN region demonstrates the country's strong commitment to sustainable energy solutions. GEM's data and the Philippine Department of Energy's announcement suggest that the country is focusing heavily on the development of renewable energy sources, especially solar and wind energy. Mr. A, a Philippine solar energy company, said in an interview, “Such investments and developments are expected to significantly increase the share of renewable energy in the energy mix, which will ultimately contribute to increasing energy independence and reducing environmental impact.” revealed.
Meanwhile, the Philippine government's policy and regulatory changes on renewable energy are playing an important role in helping the country make notable progress in the field of renewable energy. The introduction of various mechanisms, including the Renewable Energy Act, is contributing to attracting investment and promoting the growth of the renewable energy market. This is an important step in the Philippines' path to a sustainable future through renewable energy and provides an opportunity for the Philippines to strengthen its position as a global renewable energy producer while emphasizing the role of foreign investment in accelerating the country's energy transition.
Source: Compilation of data from the Philippine Department of Energy (DOE), Global Energy Monitor (GEM), Official Gadget, Rappler, Philippines Resources, Pulse Asia Research, Philippines News Agency, Philstar, and KOTRA Manila Trade Center