Compliance, Coordination, and Conflict: Examining Renewable Energy Policy Mechanisms in the Philippine Energy Plan

Luis Enrique P. Reyes () and Aldrin D. Calderon
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Luis Enrique P. Reyes: School of Mechanical, Manufacturing, and Energy Engineering, Mapua University, 658 Muralla St., Intramuros, Manila 1002, Philippines
Aldrin D. Calderon: School of Mechanical, Manufacturing, and Energy Engineering, Mapua University, 658 Muralla St., Intramuros, Manila 1002, Philippines

Energies, 2025, vol. 18, issue 17, 1-30

Abstract: The Philippines, a country with abundant natural resources, has set a high 35% renewable energy (RE) share target by 2030. However, progress is slow with the implementation of its key policy mechanisms. Through the years, the Department of Energy has slowly increased the goals from 30% to 35% by 2030 and even up to 50% by 2050%. The key legal framework for the Philippine Renewable Energy sector is the Renewable Energy Act of 2008, which outlines key policy mechanisms: Renewable Portfolio Standards (RPSs), Net Metering, the Green Energy Auction Program (GEAP), and the Green Energy Option Program (GEOP). This paper analyzes the implementation and enforcement of the key policy mechanisms along with factors affecting their intended rollout. Along with the policy mechanism issues, this paper highlights key institutional and structural issues for the stakeholders of the RE sector. The main issues can be attributed to the incoherence of government agencies such as the Department of Energy (DOE), the Energy Regulatory Commission (ERC), and the National Grid Corporation of the Philippines (NGCP). Other issues include insufficient transmission infrastructure, resistance from Distribution Utilities (DUs) and Electric Cooperatives (ECs), and weak Local Government Unit (LGU) participation. The paper provides recommendations on the key issues of policy mechanisms and structural and institutional bottlenecks. The main recommendations that will help achieve the intended purpose of the drivers of RE are to strengthen the National Renewable Energy Board (NREB) and other agency capabilities, provide financial incentives to utilities, streamline permitting and other processes, and prioritize grid development for areas with RE development. For the targets of the DOE to be achieved, the main drivers for the RE sector must be revisited and fixed at their core. Achieving the RE targets of the DOE will need strong leadership and sustained focus on renewable energy development led by the government.

Keywords: renewable energy; energy policy; sustainable energy; energy transition; Philippine energy plan; clean energy development (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2025
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