Philippines poised as next success story in renewable energy
Philippines poised as next success story in renewable energy
Richmond Mercurio - The Philippine Star
October 21, 2022 | 12:00am
MANILA, Philippines — The abundance of renewable energy options puts the Philippines in a position to become the next renewable energy success story, but finding the right partners is seen crucial.
Denmark Ambassador Franz-Michael Mellbin said long term planning and a just transition from fossil fuel to renewable energy involving not only regulation, but also jobs, distribution, and fair pricing are key ingredients that would help the Philippines survive and thrive despite the current fuel price hikes, looming power outages and energy insecurity facing the country in the next few months.
“The Philippines has every opportunity to be the next renewable energy success story. It has the renewable energy options for a healthy and abundant future energy mix – geothermal, hydro, biomass, solar, on- and off-shore wind and waste-to-energy,” Mellbin said.
He said renewables are the “fastest way to solve the energy crisis, make energy cheaper and improve quality” in a situation where “existing coal-fired power plants are over-extended and being depleted, electricity demand is expected to more than triple by 2040, and the Filipino people are suffering sky-high energy prices.”
Mellbin, who was among the panelists at the recently held 2022 Renewable Energy Congress, shared lessons from his own country’s transition to renewable energy and its possible application to the Philippines’ energy situation.
He said that while renewables have a lot of potential, it also comes with challenges. “Wind and solar are intermittent sources. The existing energy distribution system will have to be overhauled, and energy storage remains expensive, except for hydroelectric power.”
Mellbin said the key is for the Philippines to find the right partners to transition to renewable energy. “Effective public-private partnerships can help government enact business-friendly regulation and programs. This needs openness, transparency, and a high level of trust,” he said.
The ambassador said there must also be “active coordination among power stakeholders in the Philippines, including the government, state-owned enterprises and the private sector.”
“Incumbent energy producers may be either the largest asset or obstacle to a renewable energy future for the Philippines,” he said.
The Department of Energy (DOE) has recently made significant steps forward in the country’s push for the development of renewable energy.
The agency is preparing to amend the implementing rules and regulations of the country’s renewable energy law to boost investments in the sector by easing foreign ownership limit.
It has also made all qualified and registered renewable energy generating plants as preferential dispatch in the wholesale electricity spot market (WESM), a move seen accelerating the development and utilization of indigenous renewable energy resources.
This means that all qualified and registered generating units utilizing renewable energy sources may now enjoy the option of preferential dispatch in the WESM, a platform for centralized trading of electricity.
Further, the DOE has raised the percentage of the utilization of renewable energy for on-grid areas from one percent to 2.52 percent as part of the government’s goal of transitioning toward a sustainable and clean energy future.
The hike in the country’s renewable portfolio standards requirement is seen ushering in new investments as it creates a larger market for the renewable energy industry.
The DOE is targeting to increase renewable energy’s share in the country’s power generation mix from the current 22 percent to 35 percent by 2030 and 50 percent by 2040.
Renewable Energy Philippines