PH needs P5.8T in investments to meet 2040 power generation mix  - NEDA

The Philippines will need $103.6 billion or P5.8 trillion worth of investments in renewable energy projects for it to meet its target power generation mix by 2040, the economic managers told prospective investors in the Middle East on Tuesday.

According to National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan, the investments will help the Philippines meet its goal of having renewable energy account for 50% of the generation mix by 2040.

"A more sustainable and resilient energy system will significantly drive the Philippines’ socioeconomic transformation. The country will need more foreign direct investments in renewable energy," he said during the Philippine Economic Briefing in Dubai.

Foreign investors or companies have been allowed to engage in the Philippine renewable energy sector after the Department of Energy (DOE) in November 2022 amended the implementing rules and regulations (IRR) of the Renewable Energy Act of 2008.

The administration is also looking at amending the Electric Power Industry Reform Act (EPIRA) to bring down the cost of electricity across the country.

"Renewable energy is also a priority under the Strategic Investment Priority Plan, which contains investment areas that may receive fiscal incentives," Balisacan said.

His remarks were echoed by Finance Secretary Benjamin Diokno, who reiterated the country’s efforts to increase the share of renewable energy in the generation mix as it seeks to transition more to green sources.

"We want to transition from a dirty source of energy to cleaner energy, and again, we need a lot of investment there, and as I mentioned earlier, we have opened up that area so you can invest in solar, wind, tidal… Those are critical, plus a growing economy needs a lot of energy," he said.

The Philippines has so far released economic growth figures for the first half of the year: 6.4% in the first quarter and 4.3% in the second quarter, the slowest pace in nine quarters since the country returned to positive territory following the pandemic-induced recession. — VBL, GMA Integrated News