The Philippines will see a gradual return of renewable energy as top power source beyond 2040, counting on the shift to bridge a widening energy gap while doing the country’s part to mitigate climate change.
Green energy’s rise would be a consequence of a drop in oil and coal use over the next 2 decades and massive future investments in renewables, according to the latest Philippine Energy Plan 2018-2040 released by the energy department.
Sara Jane Ahmed, energy finance analyst at the Institute for Energy Economics and Financial Analysis, a think tank, said an 80-90% drop in green energy costs over the past decade would be a boon to RE investments, but she cautioned more green power would not necessarily translate to lower electricity costs for consumers.
“Resolving high power costs needs regulatory improvements to take advantage of deflationary RE. It is now up to the Energy Regulatory Commission to take additional steps to reinforce the Department of Energy’s new policy direction,” Ahmed said in an e-mail.
To start with, she said “removing the pass-through for fuel costs should be a high priority along with the implementation of curtailment clauses.”