In line with the government’s intensified efforts to promote RE development and use, the Philippine Department of Energy (DOE) formulated the Renewable Energy Policy Framework which embodies its objectives, goals, policies and strategies as well as programs and projects to further develop the RE sector within the perspective of the sector’s supply and demand prospects and its current stage of development. Specifically, the identified long-term goals are the following: (i) increase RE-based generating capacity by 100 percent within the next ten years; and (ii) increase non-power contribution of RE to the energy mix by 10 MMBFOE in the next 10 years. Included in these goals is the increase in the contribution of biomass, solar and wind in power generation.

Resource Potential

Based on current projections of the Philippine Department of Energy (DOE), RE will provide at least 40 percent of the country’s primary energy requirements for the next 10 years beginning 2005. Other RE such as biomass, used mostly for non-power applications, will remain to be the largest contributors to the total share of RE in the energy supply mix with at least 30 percent share. According to the Power Development Plan, biomass will provide 30 MW capacity in 2007 and will increase to 55 MW in 2008.

Based on the study, “Power Switch and Strategies for Clean Power Development in the Philippines”, the country has a potential resource capacity of 235.7 MW from bagasse resources. Other studies as well, shows the potential of the country for several small 1-2 MW rice hull fired power plants just like 1 MW rice hull fired power plant currently installed in the Northern part of Luzon.