By:
Ronnel W. Domingo / 05:10 AM May 27, 2019
Power generation capacity in the Philippines based on renewable sources other
than hydro is expected to see a double-digit annual growth over the next 12
years, driven by the continued growth in the economy and the population.
In a market outlook
report focused on the Philippines, analytics firm GlobalData said installed
capacity was cued for an 11.2-percent compound annual growth rate (CAGR) from
2019 to 2030.
The London-based firm
said investments in renewables were being driven by rising electricity
consumption, which is expected at 6.5 percent CAGR to reach 173,000
gigawatt-hours in 2030 from 81,7000 gWh in 2018.
“Growing population is
driving electricity consumption in the Philippines,” said Harshavardhan Reddy
Nagatham, power industry analyst at GlobalData. “As a result, new investment in
capacity addition is urgently needed.”
Nagatham in a statement
observed that peak demand in the Philippines has been increasing yearly and a
lot of new capacity was expected, especially in renewables.
According to National
Grid Corporation of the Philippines, peak demand in Luzon alone reached a new
high of 11,245 megawatts last May 15.
Nagatham said
investments were being given a boost by the government’s drive to reduce its
dependence on imported fossil fuel as well as to promote the development of
renewable power capacity, particularly solar through the net metering scheme.
Net metering gives
incentive to owners of rooftop solar installations with credit for power
generated in excess of what they need, which is then delivered to the grid and
which they can use to offset future electricity consumption.
“Net metering currently
has low adoption in the Philippines, but can play a major role in increasing
renewable power capacity in the country and in helping with the supply
security,” Nagatham said.
“Creating awareness
among the public and businesses to embrace the technology and encouraging the
adoption of solar and other renewable power technologies among institutional
power consumers will go a long way in achieving the country’s energy
independence and security,” he added.
GlobalData estimated
that the share of solar and onshore wind power in the country’s power-generation
mix would increase to 13 percent and 4.6 percent of total installed capacity in
2030, respectively, from 4.3 percent and 1.8 percent in 2018.
Over the same period,
the share of coal in the power mix is expected to decrease to 32.5 percent from
36.4 percent.
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