The removal of foreign ownership restrictions on renewable energy (RE) projects in the Philippines has attracted 75 projects with 20 gigawatts (GW) of capacity since 2022.
As of August, the Department of Energy (DOE) has awarded to foreign firms 13 solar power contracts with a total capacity of 1,297.52 megawatts (MW), nine offshore wind (OSW) contracts with 5,510 MW, and 53 onshore wind contracts with 13,183.95 MW.
‘We recognize that private sector investment is central in achieving our targets. Hence, we are creating an enabling business environment to make RE more appealing to investors.
In 2022, liberalized foreign ownership rule is a clear signal to the world that the Philippines is open for clean energy business. To date, it has already attracted 75 projects, totaling 20 GW capacity, awarded to fully foreign entities,’ said DOE Undersecretary Rowena Guevara during the 2nd Philippines Future Energy and Grid Summit.
The policy, backed by a legal opinion from the Justice department, allows up to 100-percent foreign ownership in the exploration, development, and utilization of indigenous RE sources.
The 100-percent foreign ownership in RE projects, which facilitated faster entry of RE investments, is among the renewable policies that accelerated RE development in the country.
Other efforts include the simplified RE service contracts under the revised omnibus guidelines, energy virtual one-stop shop (EVOSS) system, expanded roof-mounted solar program (ERSP), net-metering program, green energy option program, renewable energy portfolio standards, and green energy auctions.
Overall, there are 1,371 RE contracts, with an installed capacity of 7.7 GW, awarded as of August this year. The potential capacity of these projects stands at 145.8GW.
Of which, 561 are solar contracts, 414 are hydro, 286 are wind, 72 are biomass, and 29 are geothermal.
The DOE is targeting a 35-percent RE share in the power generation mix by 2030, 50 percent by 2040, and over 50 percent by 2050.
Under the Philippine Energy Plan 2023-2050, there are six energy transition strategies cried by the DOE. The list include acceleration of RE development, with focus on OSW; smart and green transmission system to accommodate more RE capacity that will come online from 2024 to 2040; build port infrastructure to support OSW; voluntary early decommissioning or repurposing of existing coal power plants; decarbonize the transport sector through electric vehicles; and energy efficiency and conservation.
‘The challenges we face in meeting our nation’s energy demands are significant, but so is our resolve. The Philippines has long depended on imported fossil fuels, exposing us to volatile costs and climate risks.
That is our commitment to the Filipino people, and it is the driving force behind the Philippine Energy Plan (PEP) 2023-2050-our updated roadmap for transition,’ said Guevara.
The transition roadmap, she added, presents three scenarios. Reference (REF) Scenario, which targets a 35-percent RE share by 2030 and 50 percent from 2040 to 2050; Clean Energy Scenario (CES) 1 which has high RE with low OSW + nuclear + coal repurposing; and CES 2 which has high RE with high OSW + nuclear + coal repurposing.
‘These targets are not just numbers; they represent a fundamental shift in our national policy and a decisive step toward a sustainable future. This is a whole-of-government commitment. Our six energy transition strategies begin with the most urgent: accelerating renewable energy development,’ said the DOE official.
She noted, however, that the country’s energy mix paints a different story. In 2008, renewables made up 35 percent. Today, it is only at 22 percent.
‘This is not failure-it is a call to action. Our goals are clear: 35 percent by 2030, 50 percent by 2040, and beyond 50 percent by 2050. So, how have we begun this journey?
Our approach has been multi-pronged, with the landmark Renewable Energy Act of 2008 which truly catalyzed the RE sectors: biomass, geothermal, solar, hydropower, ocean, and wind-collectively: BIG SHOW,’ said Guevara.