ALTERNERGY Holdings Corp. expects the mandated increase in power suppliers’ distribution of renewable energy (RE) would translate into 2.65 million megawatt-hours (MWh) of renewables capacity annually.
Vicente S. Pérez, Jr., chairman of the power company, said in a press release that the increase in renewables usage “will usher in new investments as this ensures a guaranteed market for the RE developers.”
Last week, the Department of Energy (DoE) announced that on-grid power suppliers must expand the share of RE in their output to 2.52% from 1%, as part of the requirements under the government’s renewable portfolio standards (RPS) program.
The increase in the annual percentage increment for all RPS participants will take effect in 2023.
RPS, a policy mechanism under Republic Act No. 9513 or the Renewable Energy Act of 2008, requires electricity distribution utilities to source or produce a specified fraction of their power supply from eligible renewable energy resources.
Mr. Perez said that the higher RPS annual increment will result in a massive demand for RE capacity.
Alternergy estimates the mandated increase may result in an added 1,500 megawatts (MW) of solar capacity, 1,000 MW of wind capacity, or 600 MW of run-of-river hydro capacity.
“The Philippines cannot continue being hostage to any jump in the world oil and coal prices,” Mr. Perez said, adding that the policy directions being set by the DoE and the new administration “to meet the country’s electricity requirements with more and cleaner energy solutions mitigate these risks at the same time ensure a sustainable energy supply for the country.”
Mr. Perez said that the country should push for more RE investment, as the power sector is heavily dependent on imported fuel.
“With our portfolio of renewable energy projects using wind, solar and run-of-river resources, we believe we are in a unique position to take advantage of the growth of the RE sector in the next five years,” he added.
According to DoE, it has issued a total of 998 renewable energy contracts with a combined installed capacity of 5,460.59 MW. It said these contracts will generate a total of P270.78 billion worth of investment for awarded and prospective deals. — Ashley Erika O. Jose