Around Php270.8 billion worth of renewable energy (RE) investments is expected in the country as the Department of Energy (DOE) has increased the utilization of RE for on-grid areas under the Renewable Portfolio Standards (RPS) from one percent to 2.52%
The new annual percentage increment for RPS participants will take effect in 2023, based on Department Circular No. 2022-09-0030 signed by Energy secretary Raphael Lotilla.
“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,” Lotilla said.
According to the DOE, 998 renewable energy contracts have been awarded as of June this year. This is equivalent to an aggregate installed capacity of 5,460 megawatts (MW) and a potential capacity of 61,613.81 MW, which will generate around Php270.779 billion worth of investments in the country.
“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%. Our target share is 35% by 2030 and 50% by 2040,” Lotilla pointed out.
RPS is a mechanism under Republic Act No. 9513 or the Renewable Energy Act of 2008 that requires electricity suppliers like distribution utilities to source or produce a specified fraction of their power supply from eligible RE resources.
“By increasing the annual percentage over time, renewable energy would drive us on a path toward energy sustainability,” Lotilla added.