Current Challenges of Renewable Energy in the Philippines

by Jhamin Felicano

         Renewable energy is defined as energy that is collected from natural resources. Recently there has been growing interest in renewable energy and it has become one of the main sources of energy generation. The development and optimal use of the country's renewable energy resources is central to the Philippine's sustainable energy agenda. Renewable energy is an essential part of the country's low emissions development strategy and is vital to addressing the challenges of climate change, energy security, and access to energy.

Current status of renewable energy in the Philippines

The Philippines has an estimated 246,000 megawatts (MW) of untapped renewable energy. It has the world’s third-largest geothermal capacity at 1,900 MW with Indonesia in second and the US on top.

The country’s current mix of renewable energy consists of 4.3 gigawatts (GW) of hydropower, 896 MW from solar energy, and wind 427 MW. The Philippines adopted an ambitious plan to increase the share of renewable energy in the power generation mix to 35 percent by 2030 and 50 percent by 2040.

This involves increasing geothermal capacity by 75 percent, expanding hydropower capacity by 

160 percent, increasing wind power capacity to 2,345 MW, and adding an additional 277 MW of biomass power. The Department of Energy estimates the country needs US$120 billion by 2040, presenting ample opportunities for foreign investors.[1]

Problem and Causes

The continuous economic expansion of the Philippines has brought serious problems in the form of insufficient energy supply [2]. The Philippines’ GDP in 2018 grew by 6.2%, exceeding 6% for the seventh consecutive year [3]. However, more than 11% of the population has no electricity, and a higher proportion suffers from unreliable electricity supply [4].

Huge reserves and the potential of renewable energy resources have not achieved a satisfying development in the Philippines.

The main reasons for the insufficient utilization of renewable energy, include the fact that the development of renewable energy requires high prepayment and technology costs [5]. Moreover, hydropower and geothermal energy, which generate the most electricity, have a very long development cycle [6]. Moreover, the Philippines is unable to form an integrated power grid system, which impacts the sufficient transmission of electricity generated by renewable energy. The Philippine power supply system is also divided into “on-grid” and “off-grid” areas. The on-grid is supplied by two separate main power grids which lack a connection with each other. The off-grid covers these areas but suffers from insufficient power or even no power supply at all [4].

REFERENCES

[1] Alexander Chipman Koty, Philippines Opens Renewable Energy to Full Foreign Ownership ( January 11, 2023)

[2] Mondal, M. A. H., Rosegrant, M., Ringler, C., Pradesha, A., and Valmonte-Santos, R. (2018). The Philippines Energy Future and Low-Carbon Development Strategies. Energy. 147, 142–154. doi:10.1016/j.energy.2018.01.039

[3]  GPD (2019). GDP (Current US$) – Philippine GDP. World Development Indicators database. Available at: https://www.worldbank.org/cn/country/Philippine (Accessed November 19, 2020).

[4] Bertheau, P., Dionisio, J., Jütte, C., and Aquino, C. (2020). Challenges for Implementing Renewable Energy in a Cooperative Driven off- Grid System in the Philippines. Environ. Innovation and Soci. Trans. 35, 333–345. doi:10.1016/j.eist.2019.03.002

[5]Zafar, M. W., Shahbaz, M., Hou, F., Sinha, A., and Sinha, A. (2019). From Nonrenewable to Renewable Energy and its Impact on Economic Growth: The Role of Research & Development Expenditures in Asia-Pacific Economic Cooperation Countries. J. Clean. Prod. 212, 1166–1178. doi:10.1016/j.jclepro.2018.12.081

[6] Barroco, J., and Herrera, M. (2019). Clearing Barriers to Project Finance for Renewable Energy in Developing Countries: A Philippines Case Study. Energy Policy. 135, 111008. doi:10.1016/j.enpol.2019.111008