Project awards hit 20GW since RE opened to full foreign ownership

RENEWABLE ENERGY (RE) investors have committed to build 20 gigawatts (GW) worth of capacity since the Philippines opened up the industry to full foreign ownership nearly three years ago, the Department of Energy (DoE) said.

“In 2022, the liberalized foreign ownership rule sent a clear signal to the world that the Philippines is open for clean energy business. To date, (the Philippines) has attracted proposals for 75 projects, totaling 20 GW in capacity, awarded to fully foreign entities,” Energy Undersecretary Rowena Cristina L. Guevara said in a speech last week.

The DoE has awarded 53 RE contracts to build 13,183.95 megawatts (MW) of onshore wind capacity to 100% foreign entities; nine offshore wind contracts equivalent to 5,510 MW of capacity; and 13 contracts  to build 1,297.52 MW in solar capacity.

“We recognize that private sector investment is central in achieving our targets,” Ms. Guevara said. “Hence, we are creating an enabling business environment to make RE more appealing to investors.”

The DoE believes the opening up of the industry will help bring the RE share of the power generation mix to 35% by 2030 and 50% by 2040 from the current 22%.

The DoE has launched four rounds of green energy auctions, with one more for offshore wind set this year and one for waste-to-energy and biomass scheduled in 2026.

Citing a simulation presented by the Independent Electricity Market Operator of the Philippines, Ms. Guevara said that the integration of new capacities from the auctions into the energy mix could result in lower average prices on the Wholesale Electricity Spot Market.

Average spot prices from 2026 to 2029 are projected to decrease by P1.32 per kilowatt-hour (kWh) on Luzon, P1.30 per kWh in the Visayas, and P0.90 per kWh in Mindanao.

“RE also holds the promise of lowering long-term electricity prices through economies of scale,” Ms. Guevara said. — Sheldeen Joy Talavera