The Philippines has ascended to the fourth position among the top five emerging markets for power sector investments, as per the BloombergNEF Climate 2023 report. The country's commendable stride towards renewable energy (RE) transition, fortified by a multitude of initiatives, has contributed significantly to this advancement. Investments in clean energy witnessed a surge of 41 percent, culminating in a total of $1.34 billion.
Key Initiatives and Policies
A combination of auctions, feed-in tariffs, net-metering schemes, tax incentives, and ambitious RE targets have all played a pivotal role in the Philippines' energy revolution. The Department of Energy (DoE) in the Philippines has also conducted a second green energy auction, allocating 3.4 gigawatts of RE capacity for the forthcoming years. The country's robust energy plan encompasses measures for energy efficiency, alternative fuels, smart grid technologies, and climate-resilient infrastructure.
The Power of Renewable Energy
Renewable energy accounted for 29% of the country's installed capacity and 22% of its gross power generation in 2022. The DoE has laid down ambitious goals for the future, aiming for a 35% RE share in the power generation mix by 2030 and 50% by 2040. The Philippines' energy plan also includes the release of an offshore wind roadmap and the lifting of foreign ownership restrictions, thereby encouraging offshore wind investments.
As the only economy to have newly entered the top four, the Philippines' latest ranking marks a significant jump from last year's 10th spot. The BloombergNEF's Climatescope tool was used to assess the market's readiness for energy transition investments, citing the Philippines' strong targets for renewable energy and effective net-metering schemes as key drivers for this improvement. As the country continues to evolve and adapt, it manifests a promising future for power sector investments, especially in the realm of renewable energy.