The Philippines needs to reduce its reliance on imported coal and a soon-to-be-exhausted domestic gas supply to ensure energy security. 

A study by International Energy Consultants or IEC, a Perth-based consulting firm, recommended that industry regulators and legislators focus on facilitating investment in a new generation of renewable energy  to meet rapid demand growth. 

"IEC recommends that urgent attention be given to accelerating the development of domestic renewable energy sources — particularly wind and solar — supplemented by utility-scale storage — particularly pumped hydro," the IEC cited. 

OSW potential

Based on the Philippines Offshore Wind or OSW Roadmap, which was released this year, the country has an estimated 178 gigawatts or GW of OSW potential.

Despite the vast supply available nationwide, the OSW roadmap identified the tedious permitting process and grid assets availability as areas that need immediate resolution.

To date, the DoE has awarded a total of 79 OSW Contracts, with a total potential capacity of 61.931 GW.

These contracts are spread mainly across the northern part of Luzon, the west of Metro Manila, the northern and southern parts of Mindoro, and the Panay and Guimaras Strait.

In terms of solar power, the Department of Energy or DoE earlier conveyed that several solar power plants with a consolidated capacity of more or less 700 MW are expected to be online next year. 

Cross-country comparison

The IEC was commissioned by the Manila Electric Co. or Meralco to take on a cross-country comparison of 46 energy markets, including two American states, relating to tariffs.

The study, thus, concluded that Meralco's rates are fair and reasonable" and that its average tariff in 2022 ranked 21st and 3 percent below the global average.