COUNTRY PAGE - PHILIPPINES

The National Grid Corporation of the Philippines (NGCP) issued its first yellow alert for the Luzon grid this year, from 5 p.m. to 7 p.m. on Wednesday, due to insufficient operating margin amid rising temperature.

The Philippine Atmospheric, Geophysical, and Astronomical Services Administration (PAGASA) reported that the highest heat index in Luzon reached 42°C in Echague, Isabela, and Baler, Aurora.

The NGCP recorded peak demand at 11,829 megawatts (MW), with an available capacity of 12,488 MW, leaving a slim operating margin of 659 MW.

The situation was aggravated by forced outages and derated power plants.

“Eight plants have been on forced outage since February, and four other power plants out since 2024; while 16 are running on derated capacities, for a total of 3,362.3 MW unavailable to the grid,” the NGCP said.

The Department of Energy forecasted that peak demand in the Luzon grid this year is at 14,769 MW higher than the actual peak demand of the 14,016 MW recorded on April 24, 2024.

Meanwhile, both Visayas and Mindanao grids are in normal operation, NGCP said.

*This excerpt is from a news item collated by SIPET as part of its mission to serve as a one-stop platform for information and knowledge exchange about the energy transition in Southeast Asia. For the full news item, click on the link next to 'Further Information' . 

**Photo credit: PNA

The Asian Development Bank (ADB) and Ayala Corp. have signed a $100-million financing deal to support the company’s efforts to develop an electric mobility (e-mobility) ecosystem in the Philippines.

In a statement, ADB Country Director for the Philippines Pavit Ramachandran said the project is a “significant step towards a sustainable and low-carbon future for the Philippines.” 

“We are not only addressing critical environmental challenges such as air pollution, but also driving economic growth through the creation of green jobs, enhancing energy security, and promoting inclusive and resilient urban development,” he said.

The Ayala Electric Mobility Ecosystem Project has secured an $85-million ordinary-capital-resources loan from the ADB and a $15-million concessional loan from the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA).

CANPA is a trust fund managed by ADB that is supported by the government of Canada. It aims to support private sector projects in the region that focus on “climate and nature-based solutions.”

*This excerpt is from a news item collated by SIPET as part of its mission to serve as a one-stop platform for information and knowledge exchange about the energy transition in Southeast Asia. For the full news item, click on the link next to 'Further Information' . 

**Photo credit: 

The Philippines can access a potential export market of $788.4 million for its solar photovoltaic (PV) modules if it properly addresses the non-tariff barriers hindering the trade, the Philippine Exporters Confederation, Inc. said.

“For specialized solar components, the solar PV modules, the Philippines has room to expand its exports to the US ($189.4 million), China ($171.6 million), the Netherlands ($64.7 million), Vietnam ($46.4 million), and Germany ($43 million),” the export group said.

*This excerpt is from a news item collated by SIPET as part of its mission to serve as a one-stop platform for information and knowledge exchange about the energy transition in Southeast Asia. For the full news item, click on the link next to 'Further Information' . 

**Photo credit: Wikimedia Commons

The Department of Energy (DOE) of the Philippines has announced that starting December 26, the Renewable Energy Certificate (REC) trading system will fully return to a market-driven mechanism, ending more than two years of pilot operation under the Renewable Energy Market (REM).

In the future, REC prices will be determined by market supply and demand. This change is expected to further increase the share of renewable energy in the Philippines as demand drives supply.

Government sets minimum green power supply

To achieve renewable energy targets, the Philippine government has established a Renewable Portfolio Standard (RPS), which requires electricity suppliers to purchase a certain percentage of renewable energy. This policy has been in effect for over four years, and the required percentage has now risen to 11%. The REC can be used as a tool to meet this requirement, with electricity suppliers able to obtain the certificates through market trading.

Under the current system, RECs are issued and verified by the Philippine Electricity Market Corporation (PEMC), and the maximum price for the certificates is set by the DOE and approved by the Energy Regulatory Commission (ERC). The current price is set at ₱241.56 per 1,000 kilowatt-hours (about 4.15 USD).

Each certificate represents 1,000 kWh of green power, and once used by the electricity supplier, the certificate is canceled and cannot be traded again. If not used, the certificate can be transferred under conditions of price and quantity disclosure. Furthermore, a green certificate can be retained for up to three years.

With the full operation of the renewable energy market, the issuance, safekeeping, and verification of certificates will be handled by the Independent Electricity Market Operator of the Philippines (IEMOP), a non-profit organization that manages the electricity spot market and retail operations. The price will be determined by market supply and demand.

*This excerpt is from a news item collated by SIPET as part of its mission to serve as a one-stop platform for information and knowledge exchange about the energy transition in Southeast Asia. For the full news item, click on the link next to 'Further Information' . 

**Photo credit: Wikimedia Commons

The Southeast Asia Information Platform for the Energy Transition (SIPET) participated at the Deep Dive Workshop, “Digital Innovations in Energy Sector Supporting Clean Energy Transitions: Real Stories from the Ground,” on June 16 at the Asian Development Bank (ADB) Headquarters in Manila, Philippines. The deep dive session, organized by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, emphasized how digital innovations catalyze clean energy transitions.

Sascha Oppowa, Project Director of CASE for Southeast Asia, GIZ Thailand, introduced SIPET, expounding on its utility and potential to expedite the energy transition in the region. Oppowa’s remarks likened the collective understanding of energy transition to the ancient parable of blind monks encountering an elephant.

“Each monk, like those grappling with the energy transition, touched a different part of the elephant, forming unique, incomplete impressions,” explained Oppowa. “Yet through dialogue, they could collectively create a more comprehensive image, filling in gaps of understanding rather than only having partial perspectives.”

Oppowa extended this metaphor to SIPET, describing it as a space for “energy transition blind monks” to share insights and create a complete picture of the energy transition process. This collaborative approach, facilitated by digital innovation, aims to yield more holistic, effective strategies for clean energy transitions.

Oppowa provided a quick walkthrough of SIPET, showcasing its tools and resources, namely the Project Mapping Tool, the Power Transition Progress Tool, the GEM Power Plant Trackers, the Power Sector Data Browser and its complementary Power Sector Snapshots, and the Knowledge Hub. These tools and resources are aimed at helping clean energy professionals and stakeholders drive the region’s t