Despite fuel price hikes, power outages and energy insecurity facing the country, the Philippines has great potential to harness its wealth of renewable energy options. Other than policy and regulation, the journey demands planning and execution on green upskilling, supporting and adopting the right technology for competitive renewable energy supply chains, fair pricing, and finding the right partners. The country is already emerging as a leader in the renewable energy industry, generating 24 per cent of its energy mix from renewable sources such as hydropower, solar energy and wind.
This green energy future scenario is emboldened by the Philippines’ Department of Energy (DOE)’s 2020-2040 Power Development Plan (PDP). The country’s peak demand is expected to increase four-fold from 2020 to 2040 which is equivalent to about 7% growth annually. To meet this demand and the aspirational 50% renewable energy target, the Philippines’ installed capacity should increase by about five times from 22,317 megawatts (MW) in 2019 to 114,601 MW in 2040, coming from existing, committed, and newly built capacities. In addition, the successful implementation of the plans, policies, and programmes embedded in this PDP update requires the strong collaboration and synergy between the government, power industry players, and all energy stakeholders.
The renewable energy market in the Philippines will likely continue to grow due to the steady flow of investment into this sector on top of existing support from the government and partners such as the World Bank and the Asian Development Bank. Such a transformation will also be dependent on supporting and adopting the right technologies in renewable energy supply chains across the country, which will include industrial transformations such as industry automation, Smart Grid Controls, IT-OT convergence, and digitalisation.
Join Yokogawa Philippines, a historic leader in Industrial Automation now committed to supporting the transition, in partnership with Eco-Business on 28 March 2023 for a discussion on how existing and innovative new solutions have driven the renewable energy transition in the Philippines. With leading voices and experts on the market, the conversation will unpack key next steps for continued growth of the renewable energy ecosystem in the Philippines.