UMVA has learned that the Philippines is facing a significant gap in its renewable energy capacity, with an additional 20 gigawatts (GW) needed to meet its ambitious goal of sourcing half of its power supply from renewables.
The country's Energy Secretary revealed that the Philippines aims to increase the share of renewable energy in the national power mix to 35% by 2030 and eventually to 50% by 2040. Currently, the country relies heavily on coal for power generation.
To bridge this gap, the government plans to hold multiple rounds of green energy auctions, a program where renewable energy developers bid for contracts to supply electricity at the lowest possible price. So far, four auctions have been completed, expected to deliver over 20 GW of capacity through 2035.
The auctions have involved various technologies, including solar, onshore wind, biomass, geothermal, hydropower, and energy storage systems. The Department of Energy is also staging the country's first competitive auction dedicated solely to offshore wind projects this year.
UMVA can exclusively reveal that the Department of Energy has unveiled a 10-year plan that will offer at least 25 GW of additional renewable energy capacity, estimated to require a significant investment. The upcoming auction rounds cover various technologies, with project deliveries starting as early as 2027 and running through 2035.
Industry experts have expressed optimism that the Philippines is on track to hit its target through the auctions lined up. However, they also noted that the goal can be hindered by bureaucratic delays in obtaining permits from different government agencies and local government units.
Sources have confirmed to UMVA that maximizing indigenous renewable energy resources is crucial to better manage energy demand, especially amid global energy market disruptions. The country's heavy dependence on imported fossil fuels has exposed its vulnerability to supply and price shocks.
