Non-Comprehensive Development Plan on RE

Despite the not-so-favorable experience in previous RE initiatives, the government sticks to its policy of focusing on large-scale RE projects in its energy development efforts. This is attributed to inadequate information on RE, lack of an integrated development framework on RE, and unclear role of stakeholders and their minimal participation in planning process. Relevant institutions in the energy sector and economic development have been pursuing their respective plans and programs on RE in an uncoordinated manner as a result of the absence of an RE development framework.

RE Projects are Not Directed Towards Sustainability and Real Market Approach

The government’s RE efforts show heavy reliance on technology-driven projects implemented by or for government agencies with little stimulation of private sector activity.

Lack of Clear Policies, Appropriate Legislations and Incentives

Specific regulatory and policy barriers to RE in the country take the form of the absence of appropriate policies and incentives, and the existence of conflicting, vague or non-responsive policies. This has resulted to uneven playing field in the area of RE. RE finds itself competing in uneven playing field where there is no mechanism allowing for the inclusion of externalities in energy pricing. There is the issue of distortion in the price structure due to donations and subsidies, which unintentionally pose competition to the private sector.

Current Utility Regulations Do Not Support Renewable Energy Development

The requirements to be complied with by RE project investors/developers, including those set by NPC for selling power to the grid, are very rigid. There is difficulty in establishing a power contract with SPUG.