The Department of Energy is seeking partnerships from the private sector and grants or overseas development assistance to fund the country’s energy transition plan.
DOE Undersecretary Rowena Guevara said the Philippines was embarking on four energy transition strategies, namely accelerated renewable energy development, offshore wind ports (OSW), retirement or repurposing of plants, and smart and green grid plan.
Guevara said the private sector can finance the accelerated RE development while the smart and green grid plan, the OSW ports and the voluntary early decommissioning or repurposing of coal-fired power plants can be funded by the private sector and grants or ODA from bilateral and multilateral development partners.
“Our hope is that energy transition funding agencies will consider all these 4 strategies for a low-carbon energy future for all of us,” Guevara said in an economic forum.
She said speeding up RE development is led by the private sector, backed by the DOE’s policy and regulatory framework. It requires complementing technologies such as energy storage systems and grid enhancement.
“To meet the future electricity demand and RE target, new-build capacities from RE totaling 52,826 MW must be added on top of existing and committed power plants in the country. This will primarily be comprised of solar, wind, hydro, geothermal, and biomass,” she said.
She said DOE awarded a total of 1,186 RE contracts with a potential capacity of 132.9 gigawatts (GW) and an installed capacity of 5.7 GW.
Meanwhile, the DOE said OSW projects require three types of port. The agency is coordinating with the Department of Transportation and the Philippine Ports Authority in identifying potential ports and private investors that can upgrade the facilities.
She said another energy transition strategy was voluntary early decommissioning or repurposing of coal-fired power plants.
Guevara said DOE would create a long-term program to facilitate the early decommissioning or repurposing of coal plants, over 3.8 GW of which are at least 20 years old.
“The criteria for prioritizing coal-fired power plants is overlayed with the potential impact on regional grids; positive fair value; going after the most inefficient and emissions-intensive plants and those situated in densely populated areas or regions with high pollution levels; and ready-to-close plants,” she said.