The country would be able fetch P270.8 billion-worth of investments amid increasing renewable energy (RE) installations as power utilities comply with the Renewable Portfolio Standards (RPS), according to the Department of Energy.
The department calculated that investments from the awarded RE service contracts already reached 5,460.59 megawatts, while the potential capacity yet to be developed could already hit 61,613.81MW.
Of the anticipated capital influx, DOE data showed that the lion’s share will be coming from solar projects at P130.44 billion, followed by wind at P52.913 billion, and hydro could reach P38.726 billion.
Other technologies such as biomass power facilities could bring in investments of P38.159 billion, while geothermal ventures could inject capital by as much as P10.536 billion.
The energy department qualified that the current utilization of RE capacities as wheeled on-grid already reached 2.52-percent from previously at 1.0-percent.
According to Energy Secretary Raphael P. M. Lotilla, “the increase in the utilization of renewable energy in our power generation mix would encourage more investors and end-users to develop and utilize domestic energy sources.”
The RPS, in particular, is a policy mechanism that requires the distribution utilities (DUs) to source prescribed percentage of their power supply from RE-generated capacities.
Owing to that mandate then, the RE sponsor-firms can be assured of alternative market for their generated electricity because the RE projects being qualified in the DOE-administered green energy auction program (GEAP) are being awarded with long term power supply agreements.
The award of RE contracts by the DOE, however, had so far been marred with criticisms because its GEAP process had not been transparent on the price offers of the bidders; and there was no consultation undertaken with relevant stakeholders also how the allocations per technology are being set.
However, the DOE is being cautioned on its partiality toward RE developments as anchored on the country’s ‘energy transition pathway’ – that is on account of market realities that even major economies like the European countries are now suffering from energy crisis; and their RE leaning cannot even save them from such affliction.
Until today, the Philippine power sector is still grappling with Jurassic dilemma of deficient power supply – a problem that even the incursion of private sector players had not been able to solve after more than 20 years.
The long-term wish of consumers for cheaper power rates also lingers as a lofty ambition; as the two decades of power sector deregulation had just resulted in even more expensive electricity rates and had pushed the industry deeper into subsidy addiction, including those that are being extended to the RE developers.
Still, Lotilla emphasized that “private sector investments are central in achieving our renewable energy targets and vision,” with him stressing that from the current 22-percent share of RE in the power mix, the government is bent on increasing that to 35-percent by 2030; and 50-percent by 2040.
“By increasing the annual percentage overtime, renewable energy would drive us on a path toward energy sustainability,” the energy chief added.