1GW of capacity will be allotted for renewables.
Philippine utility Manila Electric Company (Meralco) has launched auctions for 2.9GW of generation capacity and has expressed plans to deploy 1GW of renewable power.
This is part of the country’s plan to raise generation capacity and its energy supply by using domestic potential - which was mostly being powered by geothermal and hydropower resources, said GlobalData power analyst Tarun Bhutani.
“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,” said Bhutani.
GlobalData forecasts solar PV installation in the Philippines to rise three-fold in the next five years from 896MW 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.
The Philippines’ demand for energy is increasing significantly despite the increase of electricity prices. According to GlobalData, coal and oil accounted for 36% and 17%, respectively in 2018 generation capacity mix.
“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,” Bhutani concluded.
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