Challenges Hinder PH’s Track to be Asia’s Wind Frontrunner

The Global Wind Energy Council (GWEC) is firm in its belief that the Philippines could be Asia’s frontrunner in wind energy development should it stay committed to its transition to renewable energy coupled with improved permitting and leasing process as well as ramping up its transmission system.

According to the GWEC, the country already “has an appropriate permitting and auctioning infrastructure in place, and was on track a decade ago to rely primarily on renewable energy” which further cements its position to become a regional leader. Yet, challenges abound that slow down the Philippines’ rise including strong policy commitment, drawn-out permitting and leasing process, and transmission bottlenecks.

The government has been found to have a preference for nuclear and liquefied natural gas (LNG) development as alternatives for coal, according to the report “Capturing Green Recovery Opportunities from Wind Power in Developing Economies” done by GWEC in partnership with BVG Associates. This is despite the fact that the government has been vocal about its support for renewable energy.

“Auctions are technology-neutral and biased towards baseload technologies, which has made it difficult for renewable energy projects to win contracts,” explained the GWEC. In addition, the Department of Energy (DOE) has largely been passive in its approach to expand the country’s wind energy “refraining from any significant steps to improve the wind energy pipeline and not actively promoting renewables as a necessary energy source.”

Renewable energy developers likewise have to undergo lengthy, complex, and bureaucratic permitting processes before successfully enacting a project, which adds another layer of difficulties. “Currently the online platform set up for permitting and bidding documents, EVOSS [Energy Virtual One Stop-Shop Act], only includes the DOE,” said the GWEC, but the report points out that at least 15 various agencies are involved in the securing of permits alongside the local government.

“Additionally, the bidding process is seen to have excessive conditions attached to it, putting off prospective developers as they have to jump through multiple hoops to meet all the conditions,” the GWEC elaborated further. There is also a lack of available grid connections which “present a considerable challenge, delaying projects and reducing investor confidence.”

Ultimately, policymakers in the Philippines should express their support for renewable energy if the country hopes to set itself up to become a wind energy frontrunner in the region. Nonetheless, the green transition is well underway. Under the Green Energy Auction Program (GEAP), the DOE launched a notice of auction for 2,000 megawatts of renewable energy capacity just last month.

Source: PhilStar