Solar energy is one of the sources of green electricity in the Philippines. (Photo: iStock)
The renewable energy sector in the Philippines has seen significant growth, with the Department of Energy (DOE) reporting a record high in installed capacity for 2024, exceeding the combined total of the past three years.
This growth is driven by favorable government policies, which have spurred investment and the installation of equipment, as well as the decline in costs for technologies like solar power. These developments have attracted more participants in the country’s energy transition.
Additionally, the latest round of renewable energy project bidding has closed, with the total installed capacity far exceeding expectations.
Investor-friendly policies boost Philippine renewables
According to the DOE, the Philippines added 794.34 MW of renewable energy capacity in 2024, surpassing the total of 759.82 MW installed from 2021 to 2023. The government’s investor-friendly policies have been key in responding to private sector demand and supporting the country's transition to clean energy.
To further increase the share of renewable energy in power generation, the government raised the Renewable Portfolio Standard (RPS) requirement in 2023. The new standard mandates that electricity suppliers must include a higher proportion of renewable energy in their supply mix, increasing from 1% annually to 2.52%. Additionally, the government has allowed 100% foreign ownership of renewable energy projects, which has contributed to the success of these policies.
Furthermore, the net-metering program has added 141 MW of renewable energy over the past decade. The decline in the cost of renewable energy technologies, especially solar panels, has made green energy more competitive by narrowing the price gap with conventional power.
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ACEN's onshore wind turbines in the Philippines. (Photo: ACEN)
The Philippines has set renewable energy goals of achieving 35% of total power generation by 2035, and 50% by 2040. With these new milestones in installed capacity, further investments are expected to follow.
Green energy auction enters third round
Meanwhile, the DOE announced the preliminary results of the third round of the Green Energy Auction (GEA-3). A total of 21 companies participated, with three withdrawing before the deadline, one failing to submit bids, and three others not providing the required documents on time. Consequently, 14 projects are entering the review stage, with a projected total installed capacity of over 7,500 MW, far surpassing the government's target capacity.
Among the projects, pumped-storage hydropower has a total proposed capacity of 550 MW, while reservoir hydropower accounts for 6,950 MW, both exceeding target levels. However, geothermal energy projects only total 30.887 MW, falling short of the 100 MW target.
The DOE noted that the final auction results will be ranked according to bid prices, starting with the lowest-cost projects, until the required capacity is met. The results are expected to be announced by May at the earliest.
Source: PNA, The Manila Times
