The Department of Energy (DOE) is optimistic about the growth of the Philippines renewable energy (RE) sector as the country is ranked the second most attractive emerging market for renewable energy (RE) investments in the 2024 Climatescope Report by BloombergNEF.
In welcoming the findings, the Department of Energy (DOE) said the Philippines has comprehensive RE policies which include auctions, net metering schemes, tax incentives and an aggressive clean energy target of 35 percent RE in the power mix by 2030.
“This milestone, marked by the rise from fourth place in 2023 and an impressive leap from 20th place in 2021, reflects the growing confidence of the global community in our country’s commitment to clean energy transition and sustainable growth,” the DOE said in a statement on Monday.
“As the only emerging market in the Asia-Pacific region with all these mechanisms in place, we are paving the way for a more sustainable energy future, not only for our nation but as a model for the region,” the DOE added.
However, it said more needs to be done as the country’s peak demand growth assumption is around 5.3 percent annually from 2024 to 2028, highlighting the need to further accelerate RE development and address the energy needs of the country’s expanding economy.
“Significantly, while most of the renewable energy investment is domestic, we look forward to realizing the potential of increased foreign participation through recent reforms that allow 100 percent foreign equity in renewable energy projects. These measures aim to unlock greater investments in solar, wind, and hydro projects, fortifying the Philippines as a prime destination for clean energy ventures,” the DOE said.
Data from the DOE showed the total share of RE installed on-grid capacity — comprised of hydro, geothermal, wind, biomass and solar technologies — stood at 8,416 megawatts as of end-2023, equivalent to 29.7 percent of the country’s power supply mix.
