To support the Philippines’ Renewable Energy (RE) and other power projects, the Department of Energy (DOE) is looking to finance transmission facilities of large-scale renewable energy and other power projects with state funds.
In a report by the Manila Bulletin, Energy Secretary Raphael Lotilla announced that the government is reviewing the budget for transmissions at the WindEurope 2023 conference.
Lotilla added that the implementation and setup of these transmission facilities must align with power plant initiatives, particularly the renewable energy prospects that the country is pushing for.
Offshore wind (OSW) is included on the list as the Philippines has an estimated 178 gigawatts (GW) of potential offshore wind resources, the World Bank Group (WBG) and the Department of Energy (DOE) said in its study.
Lotilla recognized that green and smart transmission systems align with the potential of renewable energy projects to be constructed between 2024 and 2040 is a concern for OSW investors.
To alleviate grid congestion between Luzon and Visayas, the DOE chief suggested the addition of transmission lines or avoiding subsidies that cause the build-up of excess capacity.
Under the Philippine Development Plan (PDP) 2023-2028, Lotilla stressed that the government will lead in the upgrading and modernization of transmission and distribution lines to support the efficient transition towards cleaner energy.