According to the report, authored by EIC Senior Analyst Hirzi Iskandar Mhd Rais, the Philippine Department of Energy (DOE) aims to increase the renewable share in the country's power mix to 35 percent by 2030 and 50 percent by 2040. The government is taking significant steps towards achieving this goal, including the development of what will be the country's largest wind farm with a capacity of 160 MW, slated for completion in 2023.
“The Philippines is taking major steps towards a sustainable energy future” said Azman Nasir, EIC's Director for Asia Pacific. “The country's renewable energy sector has tremendous potential, and the government's commitment to increasing renewable energy in the power mix will provide significant opportunities for foreign investors looking to invest in the Philippines' renewable energy sector. The EIC is uniquely positioned to help energy companies in the Philippines connect with supply chain companies around the world, providing them with the necessary resources to achieve the country's energy-related ambitions in renewables, as well as oil and gas.”
The country's power demand is expected to grow significantly by 2040, requiring an additional 43 GW of power capacity. To address this, the report said, the DOE is pushing for higher upstream production, with the upstream sector expected to experience growth in the coming years. The government is also making progress on LNG development, with seven LNG terminals approved, and three projects targeted to commence operations in 2023.
The renewable energy sector in the Philippines is also set to benefit from the government's decision to open the sector to foreign ownership. This move is expected to significantly boost the deployment of renewables in the country, as concluded in the report. Despite having only seven operating onshore wind projects, wind energy capacity is expected to grow in the coming years, with 13 proposed projects currently being tracked in the EICDataStream, the EIC's proprietary world-class project data repository.
The Philippines has vast offshore wind capacity, which could reach 21 GW by 2040 under the high-growth scenario. Establishing a local supply chain will be crucial to achieving this target, the report concluded.
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