Energy 101:
Renewable Energy in the Philippines

TREES advocates the use of Renewable Energy (RE) by businesses in the Philippines to help address the global problem of dependence on fossil fuels, which has been proven harmful to the environment.

By implementing RE and EE (energy efficiency) projects, we help our clients realize greener wealth. Using RE and EE technology can significantly reduce your energy consumption, giving you considerable cost savings. At the same time, you get to contribute towards the protection of the environment, and help the country reap the many benefits of RE.


Why Choose Renewable Energy?

Renewable energy technologies may initially require significant capital investments, but their substantial long-term benefits can outweigh the costs. These benefits include:

1.    COST SAVINGS. RE technologies make use of “free” energy sources, such as solar energy, biomass energy, waste heat or used water. This significantly reduces the costs paid for traditional power sources. Combined with technologies like LED lighting on the demand side, more cost savings are realized.

RE is also a viable solution for businesses operating off the grid or far from electricity grids, where energy costs are generally higher.

2.    MORE STABLE POWER SUPPLY. RE technology gives businesses a more stable power supply. Electricity supply from grids often fluctuates, and in severe weather conditions, may be interrupted altogether. RE, such as harnessed solar energy or on-site cogeneration plants, assures a continuous and steady supply of energy. Businesses operating in remote areas where traditional power supply is erratic or scarce can especially benefit from RE technologies.

Additionally, global fuel shortages can affect businesses’ power supply or cause power costs to spike. Using RE technologies can protect businesses from such unexpected events.

3.    ENHANCED CUSTOMER APPEAL. As more and more people become aware of the impact of climate change, appreciation for environment protection initiatives has been growing. Consumers look to businesses to help provide solutions to climate change issues, knowing that businesses are among the biggest users of energy and natural resources. Green businesses are thus held in high regard and develop a loyal customer base, along with industry recognition.

4.    ECONOMIC CONTRIBUTION. The implementation of RE technologies, such as solar and wind energy, is more labor-intensive compared to traditional energy sources. Thus, the use of RE contributes to job growth in the country.


Types of Renewable Energy in the Philippines

With the country’s geographical features, renewable energy is seen as an important economic sector. The various types of traditional renewable energy in the Philippines include:

Hydropower – generated by dams and run-of-the-river. Hydroelectric plants may be set up almost anywhere in the Philippines.

Geothermal power –  from the country’s rich geothermal energy supply. Geothermal power plants are suitable in areas where there is low wind incidence and less rain, such as Mindanao and Batanes.

Solar power – with the country’s abundant sunshine, solar energy has the potential to be a major power source in the Philippines.

Wind power – a few areas in the country have been harnessing wind power through wind farms, such as the Bangui Wind Farm in Ilocos Norte and Pililia Wind Farm in Rizal.

Biomass power – this derives energy from plant and animal sources, of which the Philippines, being an agricultural country, has a plentiful supply.


Growth Areas

The country is targeting a 65:35 ratio of traditional power and renewable energy capacity by the year 2030. At present, RE growth areas have been identified as follows:

1.    In Mindanao, where power supply has been insufficient and where remote areas are difficult to reach by traditional power grids.

2.    Solar power use, with established businesses like SM Investments, the Ayala Group, Jollibee Foods, and Starbucks looking to install solar energy systems.

3.    Mini hydroelectric plants, which can supply power to smaller areas.

4.    Geothermal plants, which could grow in number and capacity with more government incentives.

5.    Biomass power, which is currently being eyed to power agriculture-based businesses.

6.    Ocean energy, currently the subject of more studies.