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CN2016-01: Addressing the Challenges in Renewable Energy (RE) Development

This paper delves into RE development in the Philippines following the passage of the RE Law in 2008. Notwithstanding the establishment of key policy mechanisms, namely the feed-in tariff (FIT) and net metering standards, key challenges remain on how to maximize RE share in the country’s power generation mix. Meanwhile, the Philippines has already been known to have one of the highest power rates in the world and the relatively high cost of RE generation is ultimately borne by the electricity consumers. The FIT-ALL charge of P0.046/kwh has already been reflected in the consumers’ electricity bills since January 2015.

On the other hand, while the country needs to accelerate RE development, these efforts have to be balanced with policies towards effective regulation by improving the management of the entire energy sector and the overall business climate in the country. The Department of Energy and its instrumentalities should improve their regulatory and management functions, especially with respect to the whole process of developing RE in the country not only to facilitate more investments but also to ensure consumer welfare.



Congressional Policy and Budget Research Department
Authors Keywords
Mira, Ricardo P. ; renewable energy; energy; power; feed-in tariff (FIT); electricity; Department of Energy (DOE);
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Published in 2016 and available for Downloaded 343 times since May 10, 2016
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