The government's push for renewable energy in the Philippines is likely to decrease oil and gas consumption and attract foreign investment to the Southeast Asian nation.
London, 23 May 2023 - The Philippines is ramping up its adoption of renewable energy to reduce its reliance on fossil fuels and meet increasing energy demand, even as the Southeast Asian nation sees a surge in oil and gas consumption and production buoyed by economic growth and government policies.
This is according to a Philippines Insight Report released today by the Energy Industries Council (EIC), one of the world's leading energy trade associations and purveyor of world-class data, analysis, and networking opportunities.
"The Philippines is taking major steps towards a sustainable energy future," said Azman Nasir, EIC's Director for Asia Pacific. "The country's renewable energy sector has tremendous potential, and the government's commitment to increasing renewable energy in the power mix will provide significant opportunities for foreign investors looking to invest in the Philippines' renewable energy sector."
"The EIC is uniquely positioned to help energy companies in the Philippines connect with supply chain companies around the world, providing them with the necessary resources to achieve the country's energy-related ambitions in renewables, as well as oil and gas," added Mr. Nasir.
According to the report, authored by EIC Senior Analyst Hirzi Iskandar Mhd Rais, the Philippine Department of Energy (DOE) aims to increase the renewable share in the country's power mix to 35% by 2030 and 50% by 2040. The government is taking significant steps towards achieving this goal, including the development of what will be the country's largest wind farm with a capacity of 160MW, slated for completion in 2023.
The country's power demand is expected to grow significantly by 2040, requiring an additional 43GW of power capacity. To address this, the report said, the DOE is pushing for higher upstream production, with the upstream sector expected to experience growth in the coming years. The government is also making progress on LNG development, with seven LNG terminals approved, and three projects targeted to commence operations in 2023.
The renewable energy sector in the Philippines is also set to benefit from the government's decision to open the sector to foreign ownership. This move is expected to significantly boost the deployment of renewables in the country, as concluded in the report. Despite having only seven operating onshore wind projects, wind energy capacity is expected to grow in the coming years, with 13 proposed projects currently being tracked in the EICDataStream, the EIC's proprietary world-class project data repository.
The Philippines has vast offshore wind capacity, which could reach 21GW by 2040 under the high-growth scenario. Establishing a local supply chain will be crucial to achieving this target, the report concluded.
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Notes to editors:
The EIC is an award-winning global trade association for the energy supply chain with a worldwide membership of over 900 companies covering all energy sectors. Established in 1943, EIC advocates for its members by working closely with governments and key stakeholders. Members and clients have access to an array of products and services through our London HQ and offices in Dubai, Houston, Kuala Lumpur, and Rio de Janeiro, including EICDataStream, a worldwide database of energy projects in development, and EICAssetMap, a comprehensive operating assets information service. We also offer event solutions, and our expert analysts and consultants produce insightful reports and bespoke market intelligence. In recognition of our commitment to excellence, the EIC was honoured to receive the prestigious King's Award for Enterprise in 2023.