Chapter 3: Renewable energy in the Philippines
Case Study Analysis
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The Philippines has a strategic energy policy to promote the exploration, development and utilization of renewable energy resources. The Philippine Department of Energy (‘PDOE’) has stated: The harnessing and utilization of renewable energy (RE) comprises a critical component of the government’s strategy to provide energy supply for the country. This is evident in the power sector where increased generation from geothermal and hydro resources has lessened the country’s dependency on imported and polluting fuels. In the government’s rural electrification efforts, on the other hand, renewable energy sources such as solar, micro-hydro, wind and biomass resources are seeing wide-scale use. It is the government’s policy to facilitate the energy sector’s transition to a sustainable system with RE as an increasingly prominent, viable and competitive fuel option. The shift from fossil fuel sources to renewable forms of energy is a key strategy in ensuring the success of this transition. Moreover, current initiatives in the pursuit of this policy are directed towards creating a market-based environment that is conducive to private sector investment and participation and encourages technology transfer and research and development. Thus, current fiscal incentives provide for a preferential bias to RE technologies and projects which are environmentally sound.

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