The Republic of the Philippines is taking steps to boost local power generation through auction launches and more renewable deployment, according to leading data and analytics company GlobalData late Wednesday.
The Manila Electric Company (Meralco), the largest private sector electric distribution utility company in the Philippines, has launched auctions for 2.9 gigawatts (GW) of generation capacity.
"The utility also plans to deploy 1GW of renewable power," GlobalData stated, and added that the country plans to increase its generation capacity and energy supplies by utilizing its domestic resources.
The data company forecasts the share of renewable power, including hydropower, in the country’s electricity mix will increase from around 31.7% in 2018 to 46.2% in 2030. Solar PV will largely lead this share with a contribution of 12.5% to the electricity mix by 2030.
GlobalData also expects that solar PV installation in the Philippines will rise three-fold in the next five years from 896 megawatts (MW) in 2018 to 2.6 GW in 2023.
"In the same period, wind installation is estimated to increase from 427 MW in 2018 to 1.1 GW in 2023," the company said.
Commenting on the recent development in Philippines, Tarun Bhutani, power analyst at GlobalData, said as the Philippines is experiencing various energy challenges the demand for energy is significantly increasing despite the rise in electricity prices.
"More than half of the generated capacity is based on coal and oil, a major part of which is imported. According to GlobalData, coal and oil accounted for 36% and 17%, respectively in 2018 generation capacity mix," he underlined.
He also highlighted that over the years, the Philippines has harnessed its geothermal and hydropower resources. The government is promoting more renewable energy technology investments by providing incentives to developers.
By Gulsen Cagatay