At least 807,870 megawatts (MW) of renewable energy (RE) projects can be developed in 25competitive renewable energy zones (CREZ) identified with reduced risks for investments.
A study of the Department of Energy (DOE), the National Renewable Energy Laboratory, the National Grid Corporation of the Philippines and the United States Agency for International Development said RE generation development obstacles such as transmission access, energy curtailment, land permitting and regulatory barriers are easier to overcome for projects located in CREZ areas.
The study shows most of the RE potential are in Mindanao at 408,293 MW, followed by Luzon with 360,244 MW and Visayas with 39,333 MW.
The study said the most abundant resource is hydroelectric power with 655,034 MW trailed by wind with 93,987 MW, solar with 58,110 MW, biomass with 374 MW and geothermal with 365 MW.
“Attracting new projects in these zones will produce more energy per megawatt, given that these zones were selected based on both the quality of available resources and the ease of their development. Clustering projects in CREZ areas will enable the use of higher voltage lines with lower losses per kilometer and lower costs per kilowatt-hour in transmitting the energy services to be delivered to customers,” said DOE Secretary Alfonso Cusi.
Cusi said pursuing projects in these areas will also help the country hit multiple goals: increased use of indigenous energy resources; improved access to the national transmission grid; better power sector resilience; accelerated reduction of greenhouse gas emissions; economic growth from lower electricity bills; attraction of more local investments; and creation of green jobs.
As of end-2019, RE had a share of 29 percent at 7,399 MW out of the total installed on-grid capacity of 25,531 MW.