The Department of Energy (DOE) has increased the percentage of the utilization of renewable energy for on-grid areas from one percent to 2.52 percent in line with the administration’s goal of transitioning towards a sustainable and clean energy future.
The increase to 2.52 percent shall take effect in 2023 based on DOE circular 2022-09-0030 issued by Energy Secretary Raphael P.M. Lotilla, which prescribes the adjusted annual percentage increment for all participants of the Renewable Portfolio Standards (RPS) for on-grid areas.
“The increase in the utilization of renewable energy in our power generation mix would encourage more investors and end-users to develop and utilize domestic energy sources,” Lotilla said.
As of June this year, a total of 998 renewable energy contracts with an aggregate installed capacity of 5,460.59 MW and a potential capacity of 61,613.81 MW have been awarded by the DOE.
This generated around P270.8 billion in investments for the country.
The RPS is a policy mechanism under Republic Act No. 9513 or the Renewable Energy Act of 2008. This requires or encourages electricity suppliers, particularly the distribution utilities, to source or produce a specified fraction of their power supply from eligible renewable energy resources.
It is also a mechanism designed to provide a guaranteed market for renewable energy.
“Private sector investments are central in achieving our renewable energy targets and vision. To date, the share of renewable energy in the power generation mix is 22%. Our target share is 35% by 2030 and 50% by 2040,” Lotilla said.