The Philippine Solar and Storage Energy Alliance (PSSEA) shared that the Philippines would need Php 25 billion in investments year on year to realize the 2030 target.
In the recently concluded ASEAN Clean Energy Week, PSSEA Chair Tetchi Capellan said that the ASEAN 5, which comprises of Philippines, Vietnam, Malaysia, Indonesia, and Thailand declared ambitious renewable energy targets.
“The ASEAN 5 registered an average GDP growth rate of 5%. Such impressive economic performance tells us that we cannot slow down. And all of the ASEAN 5 countries have already declared very ambitious targets to shift a major share of their energy mix to renewable. This ambitious target is what will guide the ASEAN 5 in the years to come.” said Capellan.
However, while investments are on the rise, the pace at which they are flowing is insufficient to meet the ambitious targets set for 2030 and 2040. In 2018, about Php 7 million investments were recorded and the challenge now is to turn it into Php 3 billion every year.
Capellan added that what made the investment pace slower was the war on Ukraine that affected the entire energy supply chain.
“Although Ukraine is far from this part of the world, the interrelated nature of our world today has affected the global energy supply chain. The war has raised the prices of oil and gas. And although renewables have taken a significant turn for the better…The flow of investments, export performance, and tourism have not spared vulnerable countries.” said Capellan.
Aside from that, transmission lines should not be overlooked. While constructing power plants typically takes 5 to 7 years, even for wind projects, transmission lines require 10 to 15 years due to right-of-way issues. The PSSEA shared that the development of transmission lines should be expedited for the transition to be achievable by 2030 and 2040.
The cost of insulation and electricity must also decrease, which requires some sort of supply chain reform and optimization. A local floater manufacturing facility in the Philippines is one of the ideas being considered by the alliance.
“The ambition of the Philippine Solar and Storage Alliance is to develop the Philippines as the hub of the floating solar because of the characteristic of our country and the nature and the archipelagic nature of the Philippines,” Capellan stressed.