The Department of Energy (DOE) increased the percentage of the utilization of renewable energy (RE) under Renewable Portfolio Standards (RPS) for on-grid areas from 1 percent to 2.52 percent.
Under RPS, distribution utilities (DUs) are mandated to source an agreed portion of their energy supply from eligible RE suppliers to contribute to the growth of the industry in the country by providing a guaranteed market for clean sources of energy.
The DOE said the increase will take effect next year based on Department Circular No. 2022-09-0030 signed by Energy Secretary Raphael Lotilla on September 23.
“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,” said Lotilla, in a statement yesterday.
The DOE added that as of June 2022, a total of 998 RE contracts with an aggregate installed capacity of 5,460.59 megawatts (MW) and potential capacity of 61,613.81 MW have been awarded by the agency.
The DOE also said this capacity can also generate around P270.8 billion worth of investments, of which P130.5 billion is from solar; P52.91 billion from wind; P38.73 billion from hydro; P38.16 billion from biomass; and P10.54 billion from geothermal.
“Private sector investments are central in achieving our renewable energy targets and vision. To date, the share of renewable energy in the power generation mix is 22 percent.
Our target share is 35 percent by 2030 and 50 percent by 2040,” Lotilla further said.
As of end-2021, the country’s total installed on-grid capacity of RE from hydro, geothermal, solar, biomass and wind sources was at 7,913 MW equivalent to 29.5 percent of the mix.
Meanwhile, the Philippines’ total installed off-grid capacity of RE for the similar period was at 51.89 MW equivalent to 8.2 percent of the mix. -J. Macapagal
