Philippines 4th most attractive emerging nation for renewable energy

MANILA, Philippines — The Philippines has emerged as among the top five most attractive emerging markets globally for clean energy investments.

According to the BloombergNEF Climatescope 2023 report, the Philippines is the 4th most attractive developing economy for renewable energy investment among 110 emerging economies.

The Philippines is the only economy to have newly entered the top four, with its latest ranking six notches higher from last year’s 10th spot.

India ranked first, followed by China and Chile. Those behind the Philippines and completing the top 10 are Brazil, Croatia, Turkey, Colombia, North Macedonia, and Romania. 

The Philippines’ ascent in the rankings was made possible through significant progress undertaken in transitioning to renewable energy.

The Philippines was cited as one of the few that have implemented auctions, feed-in-tariffs, net metering schemes, tax incentives, and having a strong target for renewable energy.

The report likewise highlighted the Department of Energy (DOE)’s second green energy auction where it awarded 3.4 gigawatts (GW) of renewable energy capacity, of which 1.2 GW are earmarked for ground-mounted, rooftop solar, and onshore for 2024 to 2025 and 2.2 GW for 2026. 

“The market has now run two renewable energy auctions, and its supportive policy environment, including an ambitious offshore wind roadmap, is stimulating growth in clean energy investment,”  BloombergNEF said.

Further, the report highlighted the Philippines’ release of an offshore wind roadmap and the removal of foreign ownership restrictions that encouraged growth in offshore wind investments. 

It also cited the Philippines’ clean energy investment that expanded by 41 percent from 2021 to 2022, reaching $1.34 billion.

DOE assistant secretary Mylene Capongcol welcomed the results of the new report, saying that these were made possible through various synergies and whole-of-government approach in the implementation of energy policies and programs that President Marcos has strongly pushed.

The DOE said that as of last year, the country’s renewable energy comprised 29 percent of the installed capacity and 22 percent of the gross power generation.

The DOE targets to raise renewable energy share to 35 percent in the power generation mix by 2030 and further to 50 percent by 2040.

The agency said it is also embarking on initiatives that would propel investments in the energy sector in different technologies and required capacities in the power generation mix by 2030 to 2050 in anticipation of the release of the updated Philippine Energy Plan.

Underscoring its commitment to the global energy transition, the roadmap comprises crucial elements, such as implementation of renewable energy sources, energy efficiency and conservation measures, advancing alternative fuels and emerging energy technologies, adopting ICT through advanced smart grid technologies, and fortifying energy infrastructure to be resilient and climate proof.