The Department of Trade and Industry identified massive investments in the renewable energy sector in 2023 as more companies are transitioning to cleaner power sources.
“As of Jan. 23, 2023, these leads are expected to generate investments worth P629 billion and generate 2,025 MW [megawatts] of power. To give you an idea, there are investment leads for floating solar sheets on inland water, offshore wind turbines and waste-to-energy projects,” Trade Secretary Alfredo Pascual said over the weekend.
The agency said of the total investment pledges in 2022, RE comprised 50 percent of the investment proposals. Approved investment pledges at the Board of Investments grew by 11.6 percent to P729 billion last year from P655 billion in 2021.
It said that as of 2020, the domestic energy mix relied heavily on coal with 42 percent in installed capacity, followed by renewable energy with 29 percent, oil-based with 16 percent and natural gas with 13 percent.
Energy demand is expected to rise again as the economy recovers from the pandemic and the need for alternative energy sources is expected to further spike with the rise of the hyperscaler industry in the Philippines.
The BOI said building up of capacity and employment of energy-efficient technologies are necessary to ensure a stable and cleaner supply of electricity.
Based on the recalibrated Philippine Energy Plan 2020 to 2040 of the DOE, the sector’s goal is to chart a transformative direction towards attaining a clean energy future. PEP 2020 to 2040 is the second comprehensive energy blueprint supporting the government’s long-term vision known as Ambisyon Natin 2040.
The BOI said the country would shift to greener and sustainable initiatives to reduce greenhouse emissions and in compliance with the Glasgow Climate Pact to reduce coal use and cut carbon emissions.
“We are continuously pursuing studies on the different energy, fuel and technology options. The feasibility of nuclear energy is also being explored that we now talk about digital infrastructure,” Pascual said.
The big drivers for 2022 investments included power, particularly renewable energy accounting for 50 percent of approved investments; information and communication projects such as data centers and telco towers at 28 percent; and mass housing and transportation and storage including logistics and cold chain facilities.