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Saturday, April 20, 2024

Govt awards 928 renewable energy deals

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The Department of Energy (DOE) has awarded 928 renewable energy (RE) contracts, representing a capacity of nearly 30,000 megawatts (MW), as of May this year.

DOE Undersecretary Jesus Cristino Posadas said during a webinar on the global hyperscaler market that the agency is continuously innovating strategies to boost the country’s RE capacity.

In 2020, renewable energy’s share in the total capacity mix and total generation mix is at 29 percent and 21 percent, respectively. As of May, 928 contracts with a potential capacity of 29,971.08 MW have been awarded.

“Indigenous energy resources and private sector investment are central in achieving the country’s RE targets and vision,” commented Posadas.

He said the DOE has put in place a number of RE policies meant to achieve a 35-percent RE share in the power generation mix by 2030 and at least 50 percent by 2040. 

“In October 2020, we declared a moratorium on the endorsement of new greenfield coal fired power plants signaling our shift towards establishing a more flexible power mix, one that would help build the system that is resilient to structural demand changes and able to accommodate new, cleaner, and indigenous technological innovations,” said Posadas.

Since the implementation of the Philippine Renewable Energy Act of 2008, interest in RE has substantially grown especially with the establishment of RE Market Development Support Mechanisms. Among these are Renewable Energy Portfolio Standards (RPS), Green Energy Option Program and the Net Metering Program.

The DOE will conduct in October the targeted auction of 2,000 megawatts of RE capacity to be covered by the RPS, a mechanism that provides an alternative market to RE investments.

“These developments are paving the way for the evolution of the Renewable Energy Space in the country,” said Posadas. “In fact, just this April, a report from the HSBC Global Research hailed the Philippines as the 2nd best investment for Renewables in Southeast Asia because of our attractive regulatory environment and highly liberalized active spot market.”

The report also projected the Philippines will emerge as one of the cheapest sources of power as the levelized cost of energy is estimated to decrease by 16 percent for solar and 22 percent for on-shore wind by year 2025. 

The DOE, he added, will continue to find even more ways to boost the attractiveness of the country’s RE sector. “The prime example is today’s launch of the Philippines as the new data center in Asia.  At this juncture ladies and gentlemen, the DOE is one with the DTI in inviting investors listening to us here today like the hyperscalers of the world.”

Read full article on BusinessMirror

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