Solar PV
The solar PV industry in the Philippines is one of the fastest growing in the world. The Philippines’ solar energy capacity increased exponentially over the past decade. From just two megawatts in 2012, solar capacity reached 1,675 megawatts in 2023. The Renewable Energy Act of 2008 boosted the country’s renewable energy capacity. The Philippine Government say the nation is on target to add 1.98 GW of solar this year, alongside 590 MW of battery storage, as part of more than 4 GW of renewable energy projects. So according to GlobalData, solar PV accounted for 5% of the Philippines’s total installed power generation capacity and 1% of total power generation in 2022 worldwide.
Solar PV Market Overview
The Philippines have a dynamic wholesale market (the Wholesale Electricity Spot Market [WESM]) but have also seen a number of major policy shifts over the last 5 years, most of which have been centered on decarbonization of the power system, like:
- Introduction and identification of Competitive Renewable Energy Zones (CREZ)
- Incorporation of Mindanao grid into WESM’s central scheduling
- Relaxation of local ownership rules
- Introduction of Green Energy Auction Program (GEAP) auctions to accelerate renewable build-out
- Introduction of Renewable Portfolio Standard for retailers
- Announced targets from the Department of Energy (DoE) of 35% renewables in power generation mix by 2030 and 50% by 2040
- Creation of new reserve (ancillary) markets—regulation and contingency
- Introduction of a coal moratorium beyond the current pipeline of new coal projects and refurbishments
Market Data
- The Philippines plans to install 15 GW of clean energy by 2030
- STEAG coal-fired power plant phaseout until 2030.
- BUSECO. The representatives explained that it is a bidding process and that, currently, the supply is sufficient. By 2031, they anticipate a need for an additional 1%, primarily for spot load requirements of larger companies.
- Highlights (https://www.enerdata.net/estore/country-profiles/philippines.html)
- The country targets a share of 35% of renewables in the power-mix and a 75% reduction of its GHG emissions in 2030.
- The third renewable auction is planned in August 2024 and will offer 4.2 GW of hydro and geothermal.
- More than 90% of the electricity generation comes from IPPs.
- Fuel and electricity prices decreased in 2023 after 3 years of continued increase.
- Electricity prices are amongst the highest in Asean.
- Coal and oil represent 62% of total energy consumption.
- Households absorb 39% of electricity consumption.
- A very rapid growth in energy demand is expected by 2040 (around 6%/year).
- The country aims to increase LNG imports to anticipate a decrease in gas production and a coal phase-out.