According to the Institute for Development and Econometric Analysis, Inc. (IDEA), latest Industry Trends, a regular publication produced by IDEA, in early 2012, Mindanao experienced daily power outages of between 30 and 90 minutes. Apparently, the 1,112 MW supply available for the area fell short of the 1,261 MW peak demand. As demand for energy continues to grow while supply is consistently lagging behind. Fear ignites of an energy shortage possibly deterring future economic progress.
Over the years, the country has been dependent on volatile and expensive non renewable energy sources like fossil fuels and nuclear power. With the Philippines expecting exceptional growth in the coming years, the country will require considerably more generation capacity estimated at 15,400 MW by 2030. Aside from this, the budding distaste for environmentally unsustainable projects has furthered demand for RE. That is why the need to find other means of energy sources is vital. Coal plant developers are coming forward to meet current demand but the Philippines cannot afford to miss out on its vast potential for renewable energy.
According to the same published report, renewable energy comes from natural sources such as wind, water, sun, and the earth itself. Impressively enough, on average, almost 33 percent of our energy consumption from 2002 to 2010 comes from these energy sources. The government is even banking on the development of the RE industry as a long term solution to the country's long standing supply deficiency as well as a catalyst to countryside development. The government, aware of both the need and advantages of renewable energy, is pushing for a greater piece in the energy mix for RE. The country's installed capacity currently stands at 5,439 MW and according to President Benigno Aquino III, will increase by 7,067 MW from already approved service contracts, and quite possibly by 3,771 more from pending applications.
International investors increasingly look towards the Philippines to invest in renewable energy. With the establishment of FiT rates, investors are expected to flock with the assurance of an RE market and future profit. To state, eight German companies engaged in RE, namely Vastani GmbH, Eckrohrkessel GmbH, Envitec Biogas AG, GTP Solutions GmbH, Binder GmbH, Ascentec GmbH, Novis GmbH and Pregobello GmbH, travelled to Manila in January to seek partnerships with local companies for the establishment of bioenergy production facilities. On February 19, a delegation of British companies, including Aseagas Corporation, Wind Prospect Group, and Arup, gathered to discuss investment opportunities in the sector. Geothermal development in the Philippines continues to be strong in 2013. The Philippines has developed two gigawatts (GW) of geothermal generation. If the government, with the assistance Department of Energy’s (DOE) geothermal energy management division, proceeds with this direction, the country will be able to surpass the US as the largest producer of geothermal energy.
For this to happen, the Philippines require 1,405 MW additional capacity, equivalent to a 75 percent increase by 2030, according to IDEA.
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