The Philippines scored highly in both the conventional and renewable energy (RE) indices of PA Consulting Group’s “Energy Investment Map,” as the fast-growing economy needs new generation capacity to support more household consumption and business activities.
The Philippines ranked 3rd out of 30 countries in the map’s conventional energy index.
“The Philippines scores highly for gas and coal. This reflects the need for additional generation capacity outweighing the concerns over future gas supplies,” PA Consulting said in a report late Wednesday.
In fact, conventional generation still appears as an attractive prospect in Asia Pacific, driven by lower fossil fuel prices and the requirement for additional generation capacity across the region.
“Most of the generation build underway in Asia Pacific is conventional—CCGT and coal. This is a reflection of low coal prices, anticipated lower gas prices, and the nascent renewables support policies in the region,” PA Consulting energy expert Steve Thornton said.
Many of the top countries for investment in conventional generation are characterized by fast-growing demand for power combined with regulatory regimes that enable long-term contracts for power from new projects.
The top three countries in the index (No. 1 India, No. 2 Poland, No. 3 the Philippines) all fit this pattern, PA Consulting said.
In the RE index, the Philippines ranked fifth out of 30.
The country’s position in the index was boosted by its scores for wind, hydro, and geothermal—three technologies that are seen to have high investment potential.
Wind and geothermal power are particularly attractive with much room for growth, according to the study.
“The Philippines is in need of new generation capacity, and with the introduction of Feed in Tariffs and an incoming Renewable Energy Market, renewables offer an attractive investment prospect,” Thornton said.
The RE index rates countries according to anticipated internal rates of return and associated risks.
China leads the RE index due to a combination of extensive, high-quality renewable resources (and the potential for their development) as well as government support that provides attractive pricing for renewable energy, PA Consulting said.