THE PHILIPPINES landed in the fourth spot as among the most attractive developing economy for renewable energy (RE) investment.
Citing the BloombergNEF Climate 2023 report, the Department of Energy (DOE) said over the weekend that the Philippines moved up six places to number four after India, China and Chile following the country’s significant progress in transitioning to RE over the last two years.
According to the report, the Philippines stands out as one of the few that have implemented auctions, feed-in-tariffs, net metering schemes, tax incentives and with a strong target for renewable energy. It further highlighted DOE’s second green energy auction where it has awarded 3.4 gigawatts (GW) of RE capacity where 1.2 GW is earmarked for ground-mounted, rooftop solar and onshore for 2024 to 2025 and 2.2 GW for 2026.
The report also highlighted the country’s release of an offshore wind roadmap and the removal of foreign ownership restrictions which encouraged growth in offshore wind investments. It also cited the country’s clean energy investment which grew 41 percent from 2021 to 2022, reaching $1.34 billion.
“The Philippines, in fourth place, is the only economy to have newly entered the top four, gaining six places since last year. The market has now run two renewable energy auctions, and its supportive policy environment, including an ambitious offshore wind roadmap, is stimulating growth in clean energy investment,” the report stated.
Sofia Maia, BNEF’s head of country transition research, said, “In order to be truly attractive for clean energy investment, the first thing these markets need is a well-structured power market, with a range of policies in force to support their renewable energy targets,” Maia said.
According to DOE Assistant Secretary Myleenne Capongcol, all efforts were made possible through various synergies and whole-of-government approach in the implementation of energy policies and programs that President Ferdinand Marcos Jr. has strongly pushed.
As of 2022, the country’s renewable energy comprised 29 percent of the installed capacity and 22 percent of the gross power generation.
The DOE aims to target RE share of 35 percent in the power generation mix by 2030 and 50 percent by 2040.
Meanwhile, in anticipation of the release of the updated Philippine Energy Plan, the DOE is embarking on initiatives that would propel investments in the energy sector in different technologies and required capacities in the power generation mix by 2030 to 2050, underscoring its commitment to the global energy transition.
This roadmap comprises of crucial elements such as implementation of RE sources energy efficiency and conservation measures, advancing alternative fuels and emerging energy technologies, adopting ICT through advanced smart grid technologies, and fortifying energy infrastructure to be resilient and climate proof.
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