The Department of Energy (DOE) reported it awarded a total of 998 renewable energy (RE) contracts as of June 2022, with investments amounting to PHP270.8 billion.
In a statement Wednesday, DOE said the RE contracts have a total installed capacity of 5,460.59 megawatts and a potential capacity of 61,613.81 MW.
The biggest investments were in solar energy, which amounted to PHP130.44 billion. This is followed by wind RE technology at PHP52.91 billion, hydropower at PHP38.73 billion, biomass at PHP38.16 billion, and investments in geothermal energy at PHP10.54 billion.
To attract more investments in the RE sector, DOE Secretary Raphael Lotilla signed Department Circular No. 2022-09-0030 last Sept. 23 increasing the utilization of RE for on-grid areas from 1 percent to 2.52 percent.
“The increase in the utilization of renewable energy in our power generation mix would encourage more investors and end-users to develop and utilize domestic energy sources,” Lotilla said.
The increase in RE utilization in areas connected to the grid will take effect next year.
The DOE said the newly signed department circular “requires or encourages electricity suppliers, particularly the distribution utilities, to source or produce a specified fraction of their power supply from eligible renewable energy resources”.
Lotilla added that increasing the RE utilization for on-grid areas will drive the country towards energy sustainability.
“Private sector investments are central in achieving our renewable energy targets and vision. To date, the share of renewable energy in the power generation mix is 22 percent. Our target share is 35 percent by 2030 and 50 percent by 2040,” he added. (PNA)