PH Saves USD78-M in Fuel Costs Due to Solar Power

Solar power generation has allowed the Philippines to save nearly USD80 million in fuel costs in the first half of 2022, according to a report by an international energy think tank.

A joint report by Ember, the Centre for Research on Energy and Clean Air (CREA), and the Institute for Energy Economics and Financial Analysis (IEEFA) highlighted notable developments in solar energy generation of key Asian economies as electricity demand in several developed and developing countries in the continent continue to surge.

Ember’s Asia Electricity Analyst Dr. Achmed Shahram Edianto said that as costs for solar energy generation and storage decrease, more countries are investing in renewable energy solutions.

“Asian countries have shown that rapid solar deployment is possible, setting a remarkable example and providing valuable lessons learned for their peers in the region. As the prices of solar and storage plummet, and the potential cost savings have started to materialize, solar dominance in Asia now looks to come much sooner than previously expected,” Dr. Achmed Shahram Edianto said.

The report has noted that the Philippines was able to save USD78 million in fuel costs despite the current share of solar energy of 1.7 percent in the totality of the country’s energy generation.

The report also emphasized that the share of renewable energy in the country has been decreasing in the previous decade.

However, the joint report also gave a positive outlook on the future of renewable energy in the Philippines, as Ember noted that the country has an ambition for solar, citing the Philippine Energy Plan (PEP), which requires energy providers in the country to increase their renewable energy portfolio.

The PEP aims to increase the country’s solar capability from its current level of 1.4 Gigawatt (GW) to 20 GW by 2030, ultimately reaching 46 GW by 2040.

If the targets are hit, the report says that the 2030 target will be 15 times more than the 1.4 GW the country has today.

Moreover, if solar energy is able to account for 15 percent of the country’s total energy generation, the Philippines may be able to save at least USD580 million in fuel spending, the report added.

The report also noted the efforts of Solar Philippines and Ayala ACEN, two of the leading solar energy players in the country.

Dr. Achmed Shahram Edianto also said that the contribution of solar energy as an answer to Asia’s electricity demands will grow at a pace of 22 percent per year through the national targets of five major Asian economies, which include the Philippines.

“Solar power in Asia has the potential to grow rapidly over the next decade. According to existing national targets across the five major economies (China, India, Indonesia, the Philippines, Japan), we expect to see solar capacity across the region growing at an average of 22% per year until 2030, ” Dr. Achmed Shahram Edianto added. (GFB)