Ever since the implementation of the Renewable Energy (RE) Law in 2009, over 3,700 megawatts of additional capacity has been installed in the country, based on the Department of Energy. That translates to around P363 billion in energy investments and significantly displaced about 38 million tons of carbon emissions.
However, that is still well below what is required to meet the country’s ambitious clean energy targets.
Under the Philippine Energy Plan, the government aims to scale up the share of renewables in the energy mix to 35 percent by 2030 and 50 percent by 2040. To achieve those targets, the DOE estimates around P20 trillion to P31 trillion in funding will be necessary.
There is positive momentum from 2024, which is a year considered nothing short of remarkable after hitting the highest RE installations to date.
DOE data showed that over 794 MW of RE capacity reinforced the country’s supply last year, surpassing the installations in the previous three years combined. The net metering program, a scheme that allows power end-users to build their own RE facilities for personal use and sell excess electricity to the grid, along with other investor-friendly policies, has helped the Philippines emerge last year as the second most attractive emerging market for RE investments, according to a Bloomberg report.
The rise in ranking was attributed to the country’s effective implementation of energy policies, including feed-in tariffs, import and value-added tax incentives, priority grid access, and RE certificates. The government also allowed in 2022 full foreign ownership in the RE sector, which was previously subject to a 40 percent cap.
However, despite that growth, far greater effort and sustained momentum are still needed to turn the Philippines’ RE ambition into reality. The private sector will have to step in by accelerating investments, as the program relies heavily on private green investments. This will only happen if government continues to support and incentivize the green transition to ensure that the ambitious targets and goals are met.
With 2030 practically just around the corner, let’s hope we can still catch up.*
