MANILA— The Philippines will in June auction rights to build up to 11,600 megawatts of new power capacity from renewable sources in the next three years, the Department of Energy said, as it seeks to gradually reduce its reliance on coal.
The additional capacity will come from solar, onshore wind, biomass and waste-to-energy resources.
The ministry has invited bidders for 3,600 MW of new capacity to be installed in 2024, 3,600 MW in 2025, and 4,400 MW in 2026, under the second round of its Green Energy Auction program.
The targeted additional capacity is more than five times the 2,000 MW offered at the first auction last year, when a total of 19 contracts were awarded to various developers, including solar energy provider SP New Energy SPNEC.PS.
The ministry did not provide investment figures for the auctions.
The Southeast Asian country aims to increase the share of renewable energy sources in its energy mix to 35% by 2030 and to 50% by 2040, from 22% currently.
It has exempted investments in renewable energy from a rule that limits foreign ownership in any energy project to 40%, while seeking to phase out coal-fired power plants and transition to low-carbon fuels.
Since 2020, the government has stopped accepting new proposals for coal-based power projects to encourage investment in renewables and natural gas.
—Reporting by Enrico Dela Cruz; Editing by Kanupriya Kapoor