Drivers for Renewable Energy in the Philippines
Updated: Nov 12, 2020
Department of Energy (DOE) Secretary Alfonso Cusi is inviting more investments in the Philippines’ energy industry. Indeed, over the past years, there have been exciting developments as the Philippines targets to achieve 15,304-megawatt (MW) renewable capacity by 2030.
Policies are driving the appetite for RE projects including the:
· Green Energy Auction Program, which will support renewable energy-based generators in securing power supply agreements and selling their energy through the establishment of a fair baseline price.
· Renewable Portfolio Standards (RPS) is a mandatory policy requiring a minimum sourcing of the total annual generation by power generators in missionary areas from available RE resources in the area concerned, based on optimal supply mix. 2,000 megawatts of capacity will be bid out under this policy.
· Green Energy Option Program (GEOP), empowers the consumers to choose RE as their source of energy.
· Development for Renewable Energy Applications Mainstreaming and Market Sustainability (DREAMMS) supports the development of the Philippine Renewable Energy Market System (PREMS) for the operationalization of the RE Market.
· A Renewable Energy Zone (REZ) is a geographical area that enables the development of profitable, cost-effective, grid-connected RE (large-scale). The Philippine Competitive Renewable Energy Zone (CREZ) integrates the transmission component in identifying around 34 areas that have a high resource potential for wind and solar with identified transmission readiness or upgrade requirements.
The establishment of the Energy Investment Coordinating Council and the Energy Virtual One-Stop Shop Law to harmonize, integrate and streamline the processing of permits and requirements for various energy projects should help move projects at a faster pace.
Aside from energy production, the Energy-efficiency and Conservation act was signed into law last year. This should drive the building industry and developers to look into technologies that can help bring energy consumption down.
Green bonds as well as funding from international multilateral banks may also pave the way for investments in RE Projects in the Philippines.
There are many reasons why you should consider looking into the Philippine energy industry. We, at the Trade Council in Manila, are here to assist Danish companies who are interested in the opportunities in the energy sector in the Philippines. Please contact us now!