Hot Topic Brief: Emerging Policies for Mobilizing Private Sector Investment into Clean Energy in the Philippines

The Philippines has one of the highest electricity prices for commercial and residential consumers in the Association of Southeast Asian Nations (ASEAN) region with prices between $0.12 (commercial) and $0.20 (residential) per kilowatt-hour (kWh) (ERIA 2018). Significant reliance on imported coal and diesel is the primary cause of this cost to ratepayers. This 'hot topic brief' details new policies in the Philippines designed to diversify the country's fuel-mix and the opportunities for investments in renewable energy to reduce prices for consumers and industry. This brief focuses on two recent policies: 1. Renewable Portfolio Standard (RPS): The RPS establishes mandatory targets for each electric distribution utility--both publicly and privately owned--to procure renewable energy through 2030. 2. Green Energy Option Program (GEOP): The GEOP enables companies to independently procure renewable energy from third-party power producers, which can be used to help meet private sector renewable energy goals, unlock lower electricity costs, and increase energy security.