Increased RPS requirement to boost RE market

EIREENE JAIREE GOMEZ

2022-10-08T07:00:00.0000000Z

2022-10-08T07:00:00.0000000Z

The Manila Times

https://digitaledition.manilatimes.net/article/281925956909130

Green Industries

THE increase in the mandated renewable portfolio standard (RPS) requirement will create a massive demand for renewable energy (RE) capacity in the Philippines, said Vicente Perez, Alternergy Holdings Corp. (Alternergy) chairman and former energy secretary. Alternergy welcomed the recent energy policy directive issued by the Department of Energy (DoE) on the increase in the utilization of RE resources under the RPS as it creates a bigger market for the RE industry. “The increase in the mandated RPS requirement will create a massive demand for RE capacity moving forward,” Perez said in a statement on Thursday. Based on initial estimates by Alternergy, the increase in RPS requirement translates to about 2.65 million megawatt-hour per year of RE capacity or 1,500 MW of added solar capacity or 1,000 MW of wind capacity or 600MW of run-of-river hydro capacity. “The increased RPS mandate from 1 percent to 2.5 percent annual increment will usher in new investments as this ensures a guaranteed market for the RE developers,” he said. The Energy department reported that the RE sector has generated about P271billion investments to date. Perez also noted that the current geopolitical development across the globe is another driver in pushing the growth of the RE industry at a faster pace. “The Philippines cannot continue being hostage to any jump in the world oil and coal prices. 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,” he stressed. “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,” Perez said. With robust expansion plans in the next five years, Alternergy aims to develop up to 1,370 MW of additional wind, offshore wind, solar and run of river hydro projects. Alternergy’s three run-of-river hydro projects are currently under full-swing construction. Alternergy has also recently signed a power supply agreement with an electric cooperative for a solar farm project in Central Luzon.

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