January 22, 2018 Read More →

Coal tax: The Right Signal for New Investments in the Philippines

Sara Jane Ahmed for Iteraksyon:

As a result of renewable energy cost deflation, the electricity transition taking root in countries around the world is attracting the world’s largest investors. Global electricity policy leaders such as Mexico, Chile, India, Germany, and the United Arab Emirates are seeing accelerating tariff cost reductions of up to 50 percent since the start of 2016.

As the Philippines’ energy policy clarity and commitments build, the opportunity to replicate this technology-driven trend here is very material.

In a growing number of countries, renewable energy installations have pushed electricity prices down. Wind power in particular is a massive untapped market and has the potential to drive billions of new energy infrastructure investments in the coming decade. The boost to regional employment and benefits of reduced pollution pressures should also not be underestimated.

Meanwhile, the Philippines’ excessive reliance on imported coal is one of the main reasons the country has the highest electricity price in ASEAN. Natural gas, solar, wind, run of river hydro, geothermal, and biogas are attractive, viable domestic options that can be combined to create a cheaper, more diverse, and secure energy system in this country.

Coal tax: The right signal for new investments in the Philippines

Posted in: IEEFA In the News

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