Indonesia, 2 others seen overtaking PH as top steam power producer
The Philippines is expected to drop to fourth place in the world in terms of power generation based on the planet’s internal heat as development of this energy resource revs up in similarly endowed countries, according to Fitch Solutions.
The company said in a new industry report that the Philippines, erstwhile the world’s top producer of electricity from geothermal energy, would before the end of this decade trail behind Indonesia, the United States and Turkey.
“Although we aren’t factoring in new geothermal power capacity coming online in the Philippines over the next decade, we still expect that the country will remain one of the largest geothermal markets in the world over this time period,” Fitch Solutions said.
“We highlight that this will come mostly from the country’s strong existing geothermal capacity and forecast limited growth in the renewables sector,” it added.
Also, Fitch Solutions expects the Philippines to be even more reliant on coal-fired power generation over the next 10 years.
Still, geothermal is primed to supply at least 70 percent of the Philippines’ total renewables-based electricity production, with hydro accounting for 12 percent yearly.
“On an annual average basis, the Philippines will have the second largest geothermal capacity in the Asia region and fourth largest globally over the next decade,” Fitch Solutions said.
“Although limited growth forecast for the country does pose a downside risk, the Philippines does have a strong existing capacity,” it added.
Earlier this week, Lopez-led Energy Development Corp. (EDC) lauded the Department of Energy’s (DOE) commitment to put stress on the development of geothermal- and hydro-based power generation as it pushes for a renewable energy promotion program with an initial portfolio of 2,000 megawatts.
Since 2016, the DOE has awarded a total of 472 renewable energy service contracts, with a potential capacity of 20,000 megawatts that may translate to an additional 8 percent share of renewables in the Philippines’ total primary energy supply.
“We affirm the [DOE’S] strategy of using readily available and abundant clean, renewable resources that our country has in addressing our energy situation,” said Marvin Bailon, EDC’S head of business development, trading and marketing.
“Prioritizing renewable energy will not only help the country become more resilient to energy challenges as it is indigenous, but will also help the economy attract more companies and investors who are making the pivot toward sustainable and ‘green’ practices in their business operations,” Bailon said in a statement.
EDC is the world’s largest vertically integrated geothermal energy company, providing 42 percent of the Philippines’ total generated renewable energy output with its total installed capacity of 1,473.3 MW, of which 1,179 MW is geothermal.