Non-hydro renewable capacity in the Philippines is expected to grow at a compound annual growth rate (CAGR) of 11% by 2030, according to the latest report by research agency GlobalData.
The agency’s latest report, Philippines Power Outlook to 2030, Update 2019 – Market Trends, Regulations, and Competitive Landscape, indicates that the country’s economic growth will result in a rise in electricity consumption from the current 81.7 terawatt hour (TWh) to 173.9TWh by 2030.
GlobalData analyst Harshavardhan Reddy Nagatham said: “Growing population is driving electricity consumption in the Philippines. As a result, new investment in capacity addition is urgently needed.
“Peak demand has been increasing annually and a lot of new operational capacity is expected to be unlocked in the near future.”
Thermal power is expected to decline from 67.8% in 2018, to a total share of capacity of 53.7% by 2030, whilst capacity from non-hydro renewables is expected to increase to just over a quarter, at 26.9%, an increase from the current 16.9%.
The increase in renewables is in part thanks to the Philippines government which is offering feed-in tariffs for, and encouraging the use of solar, wind, biopower capacity.