Philippines drives renewable power to improve energy security, says GlobalData
The Manila Electric Company (Meralco), the largest private sector electric distribution utility company in the Philippines, has launched auctions for 2.9 gigawatt (GW) of generation capacity. The utility also plans to deploy 1GW of renewable power.
Tarun Bhutani, Power Analyst at GlobalData, a leading data and analytics company, offers his view on the development:
“With the Philippines going through various energy challenges, the demand for energy is increasing significantly despite the increase of electricity prices. More than half of the generated capacity is based on coal and oil, major part of which is imported. According to GlobalData, coal and oil accounted for 36% and 17%, respectively in 2018 generation capacity mix.
“The country plans to increase its generation capacity and its energy supply by using the domestic potential. Over the years, the Philippines has harnessed its geothermal and hydropower resources. The government is promoting more investments in renewable energy technologies by providing incentives to the developers.
“The continuous reduction in the wind and solar generated electricity prices is also helping the cause. In addition, the country has put a tax on imported coal to create a level playing field for renewable sources. Although wind and solar PV installations are in the early stages, they are expected to grow rapidly in the coming years as per the country’s development plans. GlobalData forecasts solar PV installation in the Philippines to rise three-fold in the next five years from 896 megawatt (MW) in 2018 to 2.6GW in 2023. In the same period, wind installation is estimated to increase from 427MW in 208 to 1.1GW in 2023.
“GlobalData forecasts that the share of renewable power (including hydropower) in the country’s electricity mix will rise from around 31.7% in 2018 to 46.2% in 2030. Solar PV will lead the growth as it will contribute 12.5% in electricity mix by 2030.”
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