PHL touted as attractive emerging market for power after progress on energy transition
THE Department of Energy (DoE) said the Philippines is improving its position as an attractive emerging market for power due to the strides it has made in pursuing its energy transition.
In a statement on Sunday, the DoE was responding to the Philippines’ fourth-place ranking in the Climatescope report issued by BloombergNEF.
“The Philippines moved up six places to number four after India, China and Chile following the country’s significant progress in transitioning to renewable energy (RE) over the last two years,” the DoE said.
Climatescope provides an analysis of clean energy progress and attractiveness across 110 developing economies, which together accounted for nearly two-thirds of total global energy additions in 2022 and 82% of the world’s population.
According to the report, the Philippines made the top five for the first time thanks to its auctions, feed-in tariffs, net-metering schemes, tax incentives, and strong targets for RE.
The DoE aims to increase the share of RE to 35% by 2030 and to 50% by 2040.
“Over the past two years, the Philippines’ significant progress in transitioning to renewable energy propelled the market into Climatescope’s top five,” the report said.
The report highlighted the DoE’s second green energy auction, in which it awarded 3.4 gigawatts (GW) of RE capacity. Of the total, 1.2 GW is earmarked for ground-mounted solar, rooftop solar, and onshore wind for 2024 to 2025. Some 2.2 GW is expected for 2026.
As of 2022, installed capacity and gross power generation from renewables amounted to 29% and 22%, respectively, according to the DoE.
The report also noted the release of an offshore wind roadmap and the removal of foreign ownership restrictions, which encouraged growth in offshore wind investment.
Clean energy investment rose 41% to P1.34 billion in 2022, the report said.
Meanwhile, the DoE is set to release the updated Philippine Energy Plan this year.
“The DoE is embarking on initiatives that would propel investment 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,” the DoE said.
“This roadmap comprises 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,” it added. — Sheldeen Joy Talavera
