THE Philippines has been ranked the second most attractive emerging market for renewable energy (RE) by a Bloomberg research unit, gaining two places in this year’s Climatescope report from fourth place in 2023.
Its score of 2.65 out 5 was better than the Asia-Pacific average of 1.94 and was also second in the region, Bloomberg New Energy Finance (BloombergNEF) said.
The result, Energy Secretary Raphael Lotilla said on Monday, highlighted the country’s attractiveness as a green energy investment destination.
The Philippines also ranked higher than China, which was third at 2.60, and was outscored only by India, which was in first place at 2.73.
Rounding out the top five were Kenya (2.60) and Romania (2.56). A total of 105 developing economies comprised the 2024 list.
India, China and the Philippines were also the top three in the Asia-Pacific list of 25 countries. The fourth and fifth places in the region were taken up, respectively, by Kazakhstan (2.47) and Taiwan (2.28).
The Philippines, BloombergNEF said, has policies covering all nine categories tracked by Climatescope: RE targets, RE auctions, feed-in-tariffs, net metering, import tax incentives, value-added tax incentives, priority grid access, renewables mandates and renewable energy certificates.
Coal-fired plants remain the main source of electricity in the country, accounting for 43.42 percent of capacity and 61.9 percent of generation as of last year, the Climatescope report noted.
Utility-scale solar projects took up just a 6.09 percent share, but this was up from 5.41 percent in 2022.
Clean energy investments were around $1.98 billion in 2023, BloombergNEF said, up 87.14 percent from 2022’s $1.06 billion.
“Between 2018 and 2013, the highest investment in clean energy was in 2023 at $1.981.08 million, while the lowest was in 2018 with $130.24 million,” it added.
The average electricity price, meanwhile, rose to $187.60 per megawatt-hour (MWh) in 2023 from $163.86/MWh a year earlier, with the average over 2017 to 2023 having fluctuated between $122.29-187.60/MWh.
The generation and retail segments, but not transmission, are open for private sector participation in the Philippines, BloombergNEF noted.
Lotilla said the Climatescope gain “underscores the effectiveness of the Philippines’ comprehensive renewable energy policies, which include auctions, net metering schemes, tax incentives, and an aggressive clean energy target of 35 percent renewable energy in the power mix by 2030.”
“As the only emerging market in the Asia-Pacific region with all these mechanisms in place, we are paving the way for a more sustainable energy future, not only for our nation but as a model for the region,” he added.
The journey is far from over, Lotilla continued, given peak demand growth assumptions of around 5.3 percent annually from 2024 to 2028.
“Significantly, while most of the renewable energy investment is domestic, we look forward to realizing the potential of increased foreign participation through recent reforms that allow 100 percent foreign equity in renewable energy projects, as these measures aim to unlock greater investments in solar, wind, and hydro projects,” he said.
“Moving forward, the Administration of President Ferdinand Marcos Jr. reaffirms its commitment to driving renewable energy development, fostering innovation, and creating an enabling environment for both local and international investors.”
