The renewable energy sector in the Philippines is in danger of “dropping
behind” its five other neighbors in the Asean given the delays in the
implementation of the necessary mechanisms that will drive the growth of this
industry, according to a global independent market research firm.
In a July 2012 paper titled
“Meeting the Energy Challenge in South East Asia,” the Ipsos Business
Consulting, the market intelligence and strategy consulting division of Ipsos,
said the Philippines was still by far the most developed market with an
existing capacity of 5,439 megawatts, or 56 percent of total installed RE
capacity across the six key Asean countries, which also include Thailand,
Indonesia, Malaysia, Vietnam and Singapore.
“The situation, however, can
change rapidly as all Asean governments are committed to developing renewable
sources of energy,” said Colin Kinghorn, head of consulting for Thailand,
Indonesia and Vietnam of Ipsos.
“Though the formulation of the
National Renewable Energy Program (NREP) by the Department of Energy affirms
the government’s commitment to accelerate exploration and development of RE,
remaining challenges for the Philippines include details of policies, programs,
guidelines and support currently under development. These include
feed-in-tariffs, renewable portfolio standards, net metering and an RE trust
fund,” Kinghorn explained.
It was only last month that the
feed-in-tariff rates were issued, almost four years after the Renewable Energy
Law was enacted.
Ipsos said it still believed that
the Philippines—one of only two countries in Southeast Asia where renewable
energy approaches commercial viability—still had a strong potential of
achieving its RE targets despite facing some regulatory hurdles that have
slowed down the implementation of the Renewable Energy Law.
Based on the NREP, the Philippine
government is pushing for a three-fold increase in the use of RE resources to
more than 15,000 megawatts within a 20-year period, with expected investments
seen reaching roughly a P1 trillion.
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