THE Energy department’s moratorium on new coal-fired projects is projected to bring in Php1.45 trillion or $30 billion worth of investments in renewable energy by 2030, said an organization that examines energy markets, trends, and policies.
In its report, the Institute for Energy Economics and Financial Analysis (IEEFA) said the agency’s ban and the subsequent transition to renewables could potentially cut the share of coal in the energy supply mix to 16% from its current 41.5%, while increasing the contribution of solar and wind to a combined 43.8% from 5.4%.
“[This presents] a conservatively valued investment opportunity for both domestic and international investors and developers of over USD 30 billion over the next decade,” said the IEEFA in a commentary shared with mediaon Monday.
The figure was calculated based on the committed and indicative pipeline projects collated by the Department of Energy (DoE) for variable renewable energy (wind and solar) up to 2030, minus coal project plans affected by the moratorium, said the institute’s energy finance analyst Sara Jane Ahmed via e-mail.
Committed power projects are those that have secured financing from investors or banks. Indicative power projects are those that have applied for DoE endorsement and have yet to secure financial closing.
Based on the organization’s projections, the “deflationary price trajectory of domestic renewable electricity generation and storage triumphs over the cost of generating when the market is dominated by large fossil fueled power plants.”