The government aims to increase the share of renewable and other low-emission energy in the country to up to 50 percent of the power generation mix by 2040, President Marcos Jr. said yesterday.
In addressing the Asia-Pacific Economic Cooperation (APEC) CEO Summit in Bangkok, Thailand, the President said the Philippines has prioritized the use of renewable energy (RE) options such as hydropower, geothermal power, solar and other low-emission energy sources to address the country’s power supply needs while taking the issue of climate change into consideration.
He said the government’s target is to increase the share of RE in the country’s power generation mix to 35 percent by 2030 and to 50 percent by 2040.
Data from the Department of Energy (DOE) showed as of September, the country’s total installed RE capacity on technologies such as geothermal, hydro, biomass, solar and wind for both on-grid and off-grid is at 8,252 MW, equivalent to 29.3 percent of the overall 28,203 MW worth of installed power capacity nationwide.
The President said venturing into alternative sources of energy is imperative amid the growing threat of climate change.
“As the energy demands of the modern global economy continue to expand rapidly, diversification into renewables and other sources is imperative,” he added.
The President said the Philippines is likewise trying to minimize, if not completely address, climate change, which he described as “the most pressing existential challenge of our time” as it indelibly impacts the global economy.
Marcos said the Philippines is one of the countries at great risk from the climate crisis, not just in terms of environmental devastation. It stands to lose more than 6 percent of its gross domestic product annually by 2100 if climate change issues are not addressed, based on a study by the Asian Development Bank.
Marcos said while there are existing global agreements seeking multilateral solutions to the climate crisis such as the UN Framework Convention on Climate Change and the Paris Agreement, a stronger climate action is required.
He said in terms of minimizing carbon emissions, there has not been enough progress.
He also said that climate change, high inflation, and geopolitical crises are interconnected as part of a delicate global food ecosystem and affects nations globally.
Meanwhile, the DOE is undertaking a review and enhancement of policies and guidelines governing offshore wind (OSW) projects to ensure efficient and optimal development of the sector amid the recent opening of renewable energy projects for foreign investors.
In an advisory released on November 7, DOE Secretary Raphael Lotilla said refinements in existing policies, framework and guidelines governing the administration of wind energy service contracts cover the technical, financial, operational and administrative risks and challenges of OSW development.
However, Lotilla said existing OSW service contractors are still bound to comply with their obligations under their contracts and will have to continue to work on their commitments based on their approved work programs.
To date, the DOE has awarded 42 OSW service contracts with an indicated 31,500 megawatts (MW) of installed capacity with prime areas identified in Northern Luzon, Verde Island Passage, Northern Mindoro and Southern Mindoro.
In a briefing yesterday, Lotilla said the DOE has been receiving considerable amount of interest both from local and foreign investors in the OSW potential.
Among the biggest projects currently in development has an indicative potential of 1,650 to 2,200 MW of installed capacity for the first stage alone, located in offshore Ilocos led by Buhawid Energy Philippines, a joint venture of Copenhagen Energy, a Danish company and local RE firm, PetroGreen Energy Corp.
In another development, business groups said government’s recent amendments to RE policies will make the country more business friendly
Section 19 of the Implementing Rules and Regulations of the Renewable Energy Act of 2008 has been amended to allow foreign citizens or foreign-owned entities can soon engage in the exploration, development and utilization of the country’s RE resources.
“The renewable energy sector has always been an interest for many German investors when they consider doing business in the Philippines… Germany has a strong RE industry with a lot of know-how and experience that could contribute to the energy transition of the Philippines. We look forward to seeing the rules finalized so more companies can explore this sector’s large potential for cooperation and energy generation,” said Christopher Zimmer, German-Philippine Chamber of Commerce and Industry Inc., executive director, in a statement.
The Makati Business Club (MBC) also welcomed the development citing that the International Energy Agency also mentioned that the most effective way to reduce energy prices for consumers is to invest in and shift to RE in the long term and lessen reliance on oil overtime.
“Because of our limited generation capacity, investments in RE will make us leapfrog to a power mix that is lower-cost, better for the environment, and even win us a slice of the industry,” said Francisco Alcuaz Jr., MBC executive director, in a statement. With Jed Macapagal
