The Department of Energy (DOE) is pushing to achieve 50% renewable energy (RE) by 2040 which would require investments almost amount to $153 billion.
In 2020, the contribution of renewable energy (RE) to the generation mix was 21.2%.
In a Manila Standard report, the Department of Energy (DOE) said that in achieving the RE goal, it would rely on several factors, among which include a 10% electric vehicle access in road transportation, a strong and climate-resilient energy infrastructure, and advanced interconnected information communications technology across the energy sector.
The Energy Department added that major investments are needed to achieve the targets and most of these will be used in the construction of new power plants totaling $115.3 billion.
Renewable energy will also receive a share of $94.3 billion, while conventional power will receive $21 billion.
Aside from that, $6.97 billion is needed for transmission projects.
Furthermore, an investment of about $10.05 billion is needed for oil and gas exploration and development, and $13.2 billion for coal exploration and production.
$510 million is also needed for renewable energy projects under the pre-development stage.
Meanwhile, investments for oil distribution and terminals would need $2.94 billion, liquefied natural gas (LNG) terminals would need $1.78 billion, and biofuel production would need $2.38 billion in investments.
The energy department has already established programs aimed at boosting the development of RE. Some of these are the RE portfolio standards, requiring electricity suppliers to secure a specific portion of their supply from RE facilities, and the Green Energy Auction Program (GEAP), which provides a framework for promoting prompt investments in new and additional RE capacities.
Renewable Energy Trust Fund is also included which would finance development, research, and promotion of RE systems.